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. Last Updated: 07/27/2016

Mosenergo Ordered to Cut Prices

The Federal Anti-Monopoly Service said Wednesday that it had ordered Mosenergo, Moscow's heat and power utility, to renegotiate heating contracts with housing authorities to lower prices.

Zhilkomservis, which provides communal services to about 1,500 apartments belonging to the Federal Atomic Energy Agency, accused Mosenergo in October of using its monopoly status to charge double the legal rate for households.

"Our residents shouldn't suffer," Tatyana Matveyeva, the head of Zhilkomservis, said.

"They turned off the water and heat over 'our' debt. Now they owe us money." Mosenergo charged Zhilkomservis more than twice the cap for households, Matveyeva said.

Mosenergo charges housing utility companies a commercial rate, Mosenergo spokesman Mikhail Korotkov said. Firms serving municipal housing, the vast majority of housing in Moscow, receive the difference in what they pay and what they are allowed by law to charge people from the city, he said. Zhilkomservis works with federal housing.

The regulator ordered Mosenergo to stop overcharging Zhilkomservis within one month and pay the "illegal" profit gained into the federal budget. It gave the company three months to renegotiate contracts with other housing service companies, said Konstantin Dorokhin, a spokesman for the service.

The Federal Anti-Monopoly Service made a similar decision last year in favor of developer Donstroi, which agreed to pay the commercial rate after Mosenergo appealed, Korotkov said. Donstroi, ranked the 58th-largest closely held company in Russia, according to Forbes.

Mosenergo will appeal the decision, Korotkov said.