VITALY KOROLEV: APPLYING THE “ALTERNATIVE BOILER-HOUSE” METHOD IS A RESULT OF CONSENSUS BETWEEN ALL STAKEHOLDERS

This is the reason why the mechanism has got rolling in Russia

Rubtsovsk, the Altai region, has big chances to become the first municipality that applies the “alternative boiler-house” method, with long-term tariff-setting for heating supply. Investors and regional authorities calculate from the very beginning the costs and the required infrastructure investments, after which the maximum tariff is set that cannot be exceeded. The issue was discussed by the authorities, consumers, experts and market participants at the session on the “Pressing objectives of Russian heating sector reform by 2025” at Krasnoyarsk Economic Forum. Deputy Head of FAS Vitaly Korolev took part in the event.

“The balance of interests on implementing the “alternative boiler-house” method was reached through joint, inter-departmental decision-making”, pointed out Deputy Head of FAS. “Moreover, the draft law includes provisions that assigned the powers to the antimonopoly body to control operations of integrated heating suppliers. The latter immediately has got the status of an economic entity that has the dominant position, without being a monopoly. They also should provide non-discriminatory access to their services for other market participants and determine the price at the competitive level”.

“As for the prospects of developing the heating supply market, it’s worth mentioning that the future is in the benchmark principle of tariff regulation.  It will enable to level significantly the heating supply tariffs since they can differ by dozens of times across the subjects of the Russian Federation. In 2018, we expect to report about the results of our work in this direction. This principle is already implemented in the electric power industry for energy suppliers, and soon will be fulfilled in regulation of the power transmission services via electricity mains”, concluded Vitaly Korolev.