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The performance from year to year

Dispute between grid company and electricity supplier worth 829 million

Objective

At the time of retaining us, the client, the Inter-Regional Distribution Grid Company (IRDGC), was involved in two groups of disputes of vast importance. One group comprised of disputes between the IRDGC and guaranteed electricity supplier over electricity losses. The disputes were focused on determining the legal status of electricity, used by consumers without any relevant contract, plus energy losses in grids belonging to other grid companies. Court practice in the region with respect to such disputes was unfavorable to the IRDGC. The other group of disputes was focused on the energy supplied to public areas in residential multifamily buildings. Some condominiums had no contracts with the guaranteed electricity supplier, which was interpreted by the latter as a case of non-contracted consumption, paid for by the IRDGC. We were confronted with the most difficult task of reversing the practice unfavorable to our client and attaining decisions in favor of the IRDGC. 

Resolution

The complexity of the project was in the vast volume of technical information that had to be analyzed. We managed to establish close and efficient cooperation with the client’s technical experts. A multitude of meetings and consultations enabled us to sort out the technical aspects that proved to be of key importance in the successful fulfillment of our task. As a result, we were able to explain to the court, in a comprehendible language, the entire system of complex relationships in the sector, which predetermined the favorable outcome of the case for our client. 

Result

We were able to reduce claims for energy losses compensation by 97.5% - from 829 million Rubles to 19 million Rubles. The disputes concerning energy supply to apartment blocks were also resolved in favor of the IRDGC. The courts resolved that absence of a contract with the property management company or condominium does not make the consumption non-contracted. 

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