Vitaly Korolev took part in the parliamentary hearings on the heat supply law
Deputy Head of FAS outlined the prospects of developing the heat supply sector
On 6 February 2017, the Energy Committee of the State Duma held parliamentary hearings on the heat supply reform in Russia, particularly, the law on “alternative boiler-house” passed in the first reading.
As it was pointed out, the heat energy sector in Russia accounts for around 70% of the national energy industry. Russia is on the first place in the world for developing district heating, the length of heat networks, and fuel used in the district heating systems.
The Government of the Russian Federation introduced a draft law to the State Duma that puts forward a conceptually new model of the heating market. In the authors’ opinion, it is aimed at reducing administrative pressure upon business and creating economic incentives to attract investments in the sector.
Deputy Head of FAS Vitaly Korolev pointed out that the issue is quite pressing in view of the geographic and climatic specifics of Russia. Talking about investment attractiveness of the industry, Deputy Head of FAS highlighted the provisions of the adopted Government Decree that proposes to save monetary assets changing the type of fuel used by heat suppliers, which will enable investment in equipment modernization.
According to Vitaly Korolev, an “alternative boiler-house” model will help solve the problem of limited tariff sources in particular regions. “It is of utmost importance that the model will be just one of the possible regulation methods, and the principle of voluntary transition to the new model is observed strictly”, continued Deputy Head of the antimonopoly authority.
The Committee also discussed prices determined through the “alternative boiler-house” method of regulation. “Many experts have concerns that an overrated “alternative boiler-house” price can be directed. The risk will be neutralized through an amendment to the second reading, proposed by the Ministry of Energy of the Russian Federation. It provides that the ceiling price, set and estimated using the “alternative boiler-house” method can be approved by a subject of the Russian Federation at the level below the estimated prices based on this particular method of regulation.. In view of these facts, FAS finds that adopting the draft law and implementing the method in question in practice is expedient”, stated Vitaly Korolev.
Another item was operations of integrated heat suppliers. Vitaly Korolev pointed out that they already function in Russia under the frame of the current law. These organizations are formed on the basis of the heat-supplying schemes approved in accord with the established procedures.
Deputy Head of FAS drew attention to the fact that the antimonopoly authority continues focusing on the issues of ensuring non-discriminatory access to the heat supply services. “We will not allow infringing consumer interests and creating unequal conditions on the market” concluded Vitaly Korolev.