Anatoly Golomolzin had a meeting with a delegation from Hungary’s multisectoral tariff regulator
On 19 May, Deputy Head of FAS Anatoly Golomolzinhad a meeting with a delegation from Hungary’s multisectoral tariff regulator.
The parties discussed mutual cooperation between the two bodies in the field of tariff regulation.
Anatoly Golomolzintalked about FAS work and said thatin July 2015 the tariff regulation functions had been transferred to FAS. FAS now combines the functions of the antimonopoly and tariff regulator. Deputy Head of FAS also pointed out that in March 2016, upon instructions from the Government of the Russian Federation, FAS became a full member of the Energy Regulators Regional Association (ERRA) that has its Headquarters in Budapest, Hungary, and congratulated the Head of the delegation of the Hungarian regulator, Mr. Atilla Nyikos, who had been elected ERRA Vice-President.
Anatoly Golomolzindiscussed pricing methodology in regulated and deregulated sectors and pricing in the gas markets. He also briefed his colleagues on developing exchange trading with gas in the Russian Federation, that already involves a wide range of participants. Organized trading was developed in two stages: first, on the “Mezhregiongas” site in 2007, and then since October 2014 on SPIMEX site.
Special attention was paid to the practical application of the III Energy package in the EU, which is associated with some difficulties of pursuing EC Directives in national jurisdictions and differences in economic development. Experts estimate that Grid Codes, regulating technical parameters and the trading process, will probably come into force only in 2019-2020 although initial expectations were 2015-2016. Anatoly Golomolzinshared experience of discussing these and other issues related to the gas markets at “Flame 2016” Conference in May 2016 in Amsterdam, the Netherlands.
In conclusion the parties discussed the prospects of cooperation between FAS and Hungary’s multisectoral tariff regulator in the field of tariff regulation (exchanging experience, taking part in joint meetings, the 15th ERRA Conference on Investments and Investment Regulation as well as bilateral meetings under the Conference frame).
The parties agreed to expand collaboration between ERRA and FAS Centre for Education and Methodics in Kazan, which is also a training centre for the CIS.
On 20 May Anatoly Golomolzintook part in a meeting of the delegation from Hungary’s multisectoral tariff regulator with top executives of St Petersburg International Mercantile Exchange. The parties discussed the conditions of the markets of petrochemicals and natural gas and the relevant specifics of competitive bidding.
Currently around 15 billion m³ of natural gas are sold at SPIMEX per year. The targeted annual trading on the “month ahead” and “day ahead” markets is overall no less than 30 – 35 billion m³ of natural gas. SPIMEX trades physical goods and futures. As for the spot-market of petrochemicals, SPIMEX trades all main groups of petrochemicals with broad delivery basis geography and common work standards for all participants. Based on exchange transactions, SPIMEX calculates and published daily indices, covering the entire range of oil products. Along with exchange indices, SPIMEX registers off-exchange transactions on Russian domestic market of petrochemicals. Anatoly Golomolzinpointed out that FAS controls fulfilling the obligations to register transactions. Information about prices for the main petrochemical groups formed on the off-exchange market is in open access on SPIMEX web-site and has consolidated figures for 9 main groups of goods.
The Russian side provided information about launching exchange trading for export benchmark of Russian oil at the end of 2016. Hungary’s representatives pointed out that they will encourage buyers from Hungary and neighboring countries to take part in such trading.
Finally, the parties expressed hope for further cooperation.
