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The Competition Council Plenum Decision No. APD – 27 from 29.06.2017

04.08.2017   3187 Views    

On 30.08.2013, the Plenum of the Competition Council, based on the complaint received from „Bio-Test" LLC and on the basis of the information gathered during the preliminary examination of the complaint, ordered the initiation of the investigation regarding the signs of violation of art. 11 par. (2) let. a) and g) of the Competition Law no. 183 by „Servicii Comunale Florești" JSC.

The two actions investigated by the Competition Council referred to:

1) imposing double payment on consumers for installing the water meter purchased under the EBRD investment program; and

2) the disconnection from drinking water supply of the medical laboratory of „Bio-Test" LLC following the refusal to change the existing water meter.

During the investigation, it was found that „Servicii Comunale Florești" JSC holds a dominant position on the market for the supply of the public water and sewerage services on the territory of 10 localities in Florești district, to him being transferred through an contract - that is an annex to the project agreement signed by the EBRD, the exclusive right and the obligation to provide public water and sewerage services within the investigated relevant geographic market.

Regarding the first action investigated by the Competition Council, it was found that in the absence of a separate tariff (distinct tariff) approved by the local public administration authorities, according to Government Decision no. 1228 of 13.11.2007, the acquisition, installation, operation, maintenance and repair, replacement and metrological verification of water meters in individual houses, apartments are made on behalf of the consumer. The distinct tariff was approved by the local authority of the city Florești in april 2014. Thus, the sale of the water meters until the approval of the distinct tariff to the household consumers was an action provided by the legislative regulation provided in the contract by which the „Servicii Comunale Florești" JSC was delegated to provide the public water supply and sewerage services within the relevant geographic market.

Concerning the second action, the Competition Council found that no normative acts were adopted in which to lay down new regulations that would require „Servicii Comunale Florești" JSC to change the type and diameter of the water meters in operation. Thus, „Servicii Comunale Florești" JSC committed an abuse of dominant position by disconnecting the laboratory of „Bio-Test" LLC from the drinking water source during 02.04.2013 - 25.06.2013 for the sole reason that it refused to change existing water meters, which, moreover, correspond to the technical installation requirements and the normative acts in force with new water meters purchased under the EBRD investment program, and therefore violated the provisions of art. 11 par. (2) let. g) of the Competition Law no. 183 from 11.07.2012.



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