Dmitry Rutenberg outlined a plan of FAS work in regulating commuter passenger transportation

On 3 March 2016, the Head of the Department of the Federal Antimonopoly Service (FAS Russia) for Transport Regulation, Dmitry Rutenberg, took part in FAS workshop for the Heads of regional tariff bodies. He gave a report on regulating railway commuter transportation of passengers.

Dmitry Rutenberg started with emphasizing a special social importance of passenger transportation by rail and added that improving regulation over such operations remains an essential area of FAS work.

The Head of FAS Transport Regulation Department reminds that in 2015 a FAS initiative on regulating the rates for rolling stock lease and related services was formalized legislatively, following which FAS devised and approved a technique for calculating the lease rates.

According to the technique, indexation of the rates for providing rolling stock in 2016 will not exceed 7.4%, and the services of managing, operating, repairing and servicing rolling stock – 6.4%. In FAS opinion such indexation conforms to the growth rate of the prices of industrial product manufacturers.

Indexation of tariffs for the infrastructure services in regulated transportation will be 4%. In 2016 FAS has prolonged the 0.01 preferential coefficient for using railway infrastructure in passenger commuter transportation under the contracts for transport services between the subjects of the Russian Federation and commuter passenger companies.

Dmitry Rutenberg also reminded that executing the instructions of the Government of the Russian Federation the Antimonopoly Service monitors a regional tariff campaign in railway commuter transportation of passengers. For instance, in accord with the instructions FAS sent recommendations to its regional offices and regional tariff regulation bodies on limiting the level of tariff indexation for the population for commuter railway transportation in 2016 under 10%.

“If more than 10% tariff growth was revealed, FAS sent letters that additional analysis of a tariff campaign and decisions was required. For example, as a result of such efforts the tariff in the Republic of Chuvashia was reconsidered”, said Dmitry Rutenberg.

In the concluding part of the report the speaker discussed the main FAS plans in commuter passenger transportations for 2016.

For instance, one of the priorities is devising a technique for calculating an economically justified level of costs taken into account in setting tariffs for commuter trains.

According to Dmitry Rutenberg, the technique will, first of all, encourage improvement of cost estimate and facilitate development of clear, economically justified tariffs and charges.

Among other planned measures he mentioned improving the regulatory framework in the part of pricing for single and commutation tickets, clarifying the list of additional charges subject to tariff regulation, and issuing FAS explanations on registering and estimating passenger flow.

“At the moment estimating that index forms one of the principal controversies between commuter passenger companies and the subjects of the Russian Federation”, stated Dmitry Rutenberg.