Anatoly Golomolzin discussed the main areas of FAS tariff policy

On 3 March 2016, Deputy Head of FAS Anatoly Golomolzin discussed the main areas of FAS tariff policy at a workshop with representatives of FAS regional Offices and with the Heads of the regional executive bodies in the field of tariff-setting.

“In 2015 there were 18 meetings of FAS Board that made decisions on 78 items of tariff regulation. All decisions were reached within the designated periods and in full. The Methodological Council is formed; a plan for revising methodological and regulatory documents is adopted. The key element is cooperation between FAS and its regional Offices. Working Groups on various directions and sectoral markets are already created”, pointed out the speaker.

“It is part of our efforts to ensure the balance of interests between buyers and suppliers. Earlier consumers were not actively involved in making tariff decisions. Now our intention is to closely interact with the Consumer Council that will have access to the relevant expert examinations and plans”, emphasized Anatoly Golomolzin.

He explained that making decisions FAS shall take into consideration aspects of evaluating current operations, investment and financial-and-economic activity of companies.  Outlining some results of FAS tariff regulation work in 2015, Deputy Head of FAS said that “it was decided to turn away from the “cost plus” principle and apply the “inflation minus” method of tariff regulation instead. A long-term tariff policy has been launched and the “investments in exchange for tariff” principle is being enforced for the first time”.

“In a difficult economic situation it is essential to timely rebalance the tariffs. Using price indicators formed at the exchange markets, the method of comparable markets and benchmarking will help identify the actual corporate costs and analyze the trends correctly”, underlined Deputy Head of FAS.

Then Anatoly Golomolzin gave a detailed account of particular markets, subject to tariff regulation. He listed FAS proposals on changing regulation in telephony, discussed changing the tariff level for oil and gas companies, illustrated flexible schedules of tariff regulation in railways and highlighted the main aspects of tariff policy in air transport.

Mr. Golomolzin gave an example of the Dutch experience where the regulator, like in Russia, combined the functions of antimonopoly control and tariff regulation.

Summing up, Anatoly Golomolzin presented FAS objectives in tariff regulation for 2016, including: devising and enforcement of the Strategy for stimulating tariff regulation in natural monopolies in line with the best international practices, reforming holders of natural monopolies, giving priority to consumer interests, ensuring access to the services and infrastructure of natural monopolies on non-discriminatory conditions and other items.

“We formulated the information exchange standards. Our work must be transparent and clear for everybody. Therefore, we call upon the authorities, companies and consumers to actively cooperate with FAS towards developing and improving the tariff regulatory framework. By combined efforts we will achieve the right balance of interests and create a comfortable environment for everyone”, said Anatoly Golomolzin.