Dmitry Makhonin: our main objective is to develop commercial infrastructure of the gas market
On 3 March 2016, the Head of FAS Department for Regulating the Fuel-and-Energy Complex, Dmitry Makhonin, discussed tariff regulation of gas at a workshop with representatives of FAS regional bodies and the Heads of tariff-setting executive bodies.
He stated that the main objective on the natural gas market is developing commercial infrastructure and gradual withdrawal from regulating the final wholesale consumer gas prices.
"In the past two years we have been actively developing the institution of exchange trading. In 2015 approximately 7 billion m3 of gas were sold through exchange trading and in 2016 we expect the growth to 35 billion, which is minimum 10% of domestic supplies", stated Dmitry Makhonin.
"The second institution that we are developing is registering all transactions with natural gas at free price. Our goal is to get two price indicators that will be formed on the basis of the demand-supply balance. It will allow FAS to focus on the tariff regulation of prices for gas transportation via the main gas pipelines and the work of gas distributors", pointed out the speaker.
According to him, with developing exchange trading FAS plans to start changing the guidelines for setting the common transport tariff. "To form commercial market infrastructure we also intend to achieve free access to the gas-distribution networks and underground gas storage facilities. These regulatory acts are already drafted and are undergoing approval", emphasized Dmitry Makhonin.