Vitaly Korolev: FAS shall approve a procedure for determining sales mark-ups for providers of last resort within a month
Regional tariff regulators will apply it already this year to set electric power tariffs
Speaking at the Expert Council on the Electric Power Industry, Deputy Head of FAS Vitaly Korolevsaid that to executea July Decree of the Government of the Russian Federation FAS devised a Procedure to calculate sales mark-ups of providers of last resort by the comparative method1.
He added that the document is designed to create incentives to enhance performance of providers of last resort. The Procedure is publically accessible and the main objective of the session is to form a particular “cross-section” of consumer and business community opinion.
Sergey Dudkin, Deputy Head of FAS Department for Regulating Electric Power Industry, outlined the Procedure in detail. He pointed out that already this year regional tariff regulators will apply it making decisions on electric power tariffs. New sales mark-ups will be in place from 1 July 2018.
Sales mark-ups will be reviewed no frequently than once in three years based on costs analysis for provider of last resort. “Thus, we have already formed a long-term basis for tariff regulation of providers of last resort”, said Sergey Dudkin.
At the end of the Expert Council, Vitaly Korolev pointed out that following the discussion FAS will refine the Procedure. “The document will be reviewed for the tariff regulation workshop in Yalta on 17-19 October 2017. By the end of this month FAS will pass an Order to approve the Procedure and register it with the Ministry of Justice of the Russian Federation”, concluded Vitaly Korolev.
Reference:
1No. 863 Decree of the Government of the Russian Federation“On introducing amendments to some acts of the Government of the Russian Federationon sales mark-ups of providers of last resort using comparison and invalidating the second paragraph Clause 11 of No. 1178 Decree of the Government of the Russian Federation of 29 December 2011” of 21 July 2017.