A new approach to regulating payments for technological connection to electric power network

On 10 January 2015 No. 450 Federal Law came into force, making changes to Article 232 of the Federal Law “On Electric Power Industry”

The changes made by the Federal Law establish a principally new approach to government regulation of the payment for technological connection to electric power network of regional grid companies in the part of calculating the level of standardized tariff rates that determine its value.

According to the amendments, the standardized rates are established by the executive bodies of the constituent territories of the Russian Federation in the field of government tariff regulation for all regional grid companies at the common level and are differentiated depending on the technological connection events.

Differentiation of the common standardized tariff rates will be provided for in the fundamental pricing principles for regulated prices (tariffs) in the electric power industry.

The proposed procedure is designed to increase transparency of the payment level for technological connection, estimated by regional grid companies, for all applicants – legal entities or individual entrepreneurs as well as physical persons.

“Adopting the new law is another step towards improving the approach in the part of tariff regulation. The suggested payment procedure for technological connection is already implemented as an initiative in a number of constituent territories of the Russian Federation and its performance is efficient”, pointed out Deputy Head of FAS Vitaly Korolyov.