«YuGK TGK - 8» OJSC transferred more than 15 million Ruble as a fine to the federal budget

«YuGK TGK - 8» OJSC transferred more than 15 million Ruble as a fine to the federal budget

On 18th March 2009, the Rostov OFAS Russia found that «YuGK TGK - 8» OJSC violated Part 1 Article 10 of the Federal Law «On Protection of Competition» (abusing market dominance).
The heat supplier terminated hot water supplies to a residential apartment block on the grounds of 2-month arrears of «Donskie Zori» Housing Association for heat supply services. For abusing market dominance the Rostov OFAS Russia made «YuGK TGK - 8» OJSC administratively liable and imposed a «turnover» fine upon the company (15,630,061 Rubles).
«YuGK TGK - 8» OJSC disagreed with the decision and determination of the antimonopoly authority and filed a lawsuit. The Arbitration Court and the 15th Arbitration Appeal Court confirmed legitimacy of the decision and determination issued by the Rostov OFAS Russia regarding «YuGK TGK - 8» OJSC and upheld the authorization of the Rostov OFAS Russia.
On 20th May 2010 «YuGK TGK - 8» OJSC confirmed paying the administrative fine.
«Although it is legally possible to terminate hot water supply, in reality a resource-supplying organization effectively does not have such an option as it is bound by the provisions established by No.3 Decree of the Government of the Russian Federation. The current legislation provides for severe sanctions for cutting off hot water supply to residential houses even for a short period (less than 24 hours), which was confirmed in course of the administrative case and the followed judicial proceedings», commented Vadim Korneev, the Head of the Rostov OFAS Russia.