FAS is improving the law on tariff regulation
The absence of a unified law on tariff regulation is global and hampers economic development. The new law on state regulation of prices (tariffs) is aimed at eliminating these gaps by excluding tariff discrimination and enhancing investment attractiveness of regulated activity.
To overcome difficulties in the current system of tariff regulation, the Antimonopoly Service started drafting a Federal Law “On the Basic Principles of State Regulation of Prices (Tariffs)”. The first priority of the Law will be unifying the tariff-setting approaches in various regulatory fields on the basis of common principles and methods of tariff regulation.
Adopting the Law will improve investment attractiveness of industries due to clear and understandable tariff-setting rules, facilitate future transition of potentially competitive sectors of the economy to developing market relations and eliminate the gaps in the current law.
The objectives of the draft Law are to protect consumer interests, ensure accessibility of the services of natural monopolies, and create conditions for developing competition and economic incentives for enhancing work efficiency.
The draft Law will be a complex and key regulatory legal cat on tariff regulation.
Deputy Head of FAS Sergey Puzyrevskiy pointed out: “The Law should determine common tariff regulation principles for all industries and formalize the basic tariff-setting rules. At the same time, specifics of tariff regulation should be preserved in industry regulation (the laws on the electric power industry, heat supply, water supply, etc.)”.
According to Sergey Puzyrevskiy, the draft Law should not be considered a revolution in tariff regulation since a lot of the basic principles of industry regulation will remain unchanged. At the same time, formalizing a tariff regulation mechanism in a special law will better guarantee the rights of consumers and regulated organizations, exclude the current contradictions and gaps in the tariff regulation system.