Problems in Dagestan fuel-and-energy complex were discussed at a meeting in Makhachkala

On 24 January, the Minister of North Caucasus Affairs, Lev Kuznetov, and the Head of Dagestan, Ramazan Abdulatipov, chaired a meeting on the issues in the Dagestan fuel-and-energy complex.

One of the key speakers on the situation formed in Dagestan fuel-and-energy complex was Head of Dagestan OFAS Kurban Kubasaev.

"In December 2015, tariffs for electric power transmission in 2016 were approved in the Republics of Dagestan, Ingushetia, Karachaevo-Cherkessia, Kabardino-Balkaria and the Stavropol region. Only in Karachaevo-Cherkessia and Kabardino-Balkaria that tariffs were approved within the maximum levels. In other subjects the tariffs were approved at some rates below the lowest tariffs without FAS consent. In April 2016 FAS issued an order to abolish the tariff decisions on electric power transmission in Dagestan and adjusted them in line with the law", stated Kurban Kubasaev.

According to him, actions of Dagestan Tariff Service should comply with the tariff regulatory acts passed by FAS.

Regarding Dagestan debts for the supplied electric power and gas, Head of Dagestan OFAS once again reiterated his position on the issue and insisted that a fully-fledged independent audit would be necessary.

Kurban Kubasaev stated: "In the electric power industry, “MRSK North Caucasus” PJSC should stop the practice of using intermediaries (“Dagestan Grid” JSC – an MRSK subsidiary (100% share), “Dagestan Energy Supplier” PJSC – MRSK performs the function of a sole executive body) and start working in Dagestan directly (similarly to the practice of working in the Stavropol region)".

Lev Kuznetov proposed that in the near future FAS and Dagestan Government should get together the dialogue participants on the same platform and make sure that arrangements are reached on the key issues.

Reference:

The number of cases opened by Dagestan OFAS against gas and energy companies for abusing dominance has been increasing year to year. In 2015, Dagestan OFAS investigated 11 cases in the electric power sector, of which the facts of violating the law were confirmed in 7 cases. In 2016 there were already 31 such cases, of which decisions ascertaining the facts of violating the antimonopoly law were made on 25 cases.

A similar situation has developed in the gas supply sector: in 2015 there were 5 cases and on all of them facts of violating the antimonopoly law were ascertained; in 2016 - 12 cases and again decisions confirming violations of the law were made on all cases.

The major violations include: un reasonably switching off energy resources (resource suppliers refer to debts that they often are unable to confirm in the absence of the account reconciliation statements, signed by both parties, or judicial acts ascertaining the debt facts), unreasonable refusals of technological connections or avoiding them, unreasonable extra charges for the consumed energy resources.