FAS revealed unreasonable expenses included in water-supply tariffs

FAS revealed unreasonable expenses included in water-supply tariffs

The Commission of the Federal Antimonopoly Service (FAS Russia) arrived to such conclusion upon considering a pre-trial dispute between “RBK-Voronezh” Ltd. and Voronezh Regional Department for State Tariff Regulation.

FAS established that the beyond-tariff expenses of “RBK-Voronezh” Ltd. had reached 241 million RUB.

FAS issued a determination to the regional tariff body to exclude the unreasonable expenses for 2016 company tariffs. As a result, the growth of tariff for such services for the populations and organizations in Voronezh will go down.

“Reviewing such disputes, the Antimonopoly Service believes that it is necessary to evaluate economically unjustified expenses and revenues that must be excluded from tariffs. It will significantly enhance efficiency of tariff regulation and control in this field”, emphasized Deputy Head of FAS Sergey Puzyrevsky.

He also pointed out that this is the first FAS decision made to control the work of regional tariff bodies.

“The Antimonopoly Service is radically reviewing the controlling mechanisms in the field of tariff-setting by natural monopolies”, added the Head of FAS Department for Regional Tariff Regulation, Yulia Popkova.