THE SUPREME COURT SUPPORTED FAS IN TARIFF-SETTING IN THE FAR EAST

It confirmed the reasonableness of the prices (tariffs) set by the competition authority for electric power (capacity) for some generating facilities

On 16 November 2018, FAS issued an order¹, which approved prices (tariffs) for electric power (capacity) supplied in non-price zones of the wholesale market in 2019.

“Far East Generating Company” JSC disagreed with the price (tariff) setting procedure and approached the Supreme Court to invalidate the prices (tariffs) for electric power (capacity) for Primorskaya and Mayskaya Regional Power Stations, Khabarovsk 1 and 3 Heating-and-power Plants from the date of adopting the regulatory act.

The Supreme Court of the Russian Federation, however, substantiated FAS estimate of prices (tariffs) for electric power (capacity) with regard to these generating facilities.

“FAS is undertaking robust efforts on improving tariff regulation and creating new models of long-term regulation that can become operational already in 2020. Until then, tariff regulations will be governed by the current normative legal acts in accord with the approved method”, pointed out Head of FAS Department for Regulating the Electric Power Industry, Dmitry Vasiliev.

¹  No. 1565/18 FAS Order “On prices (tariffs) for electric power (capacity) in non-price zones of the wholesale market in 2019” of 16.11.2018, registered at the Ministry of Justice of the Russian Federation on 24.12.2018, Registration Number 53121. The Order came into effect on 05.01.2019.