VITALY KOROLEV: NEW ALTERNATIVE BOILER-HOUSE PROJECTS CAN BE LAUNCHED THIS YEAR

Deputy Head of FAS Vitaly Korolev was a speaker at 2018 St Petersburg International Legal Forum; he focused on attracting investments in the heating supply sector, particularly, alternative boiler-house.

Vitaly Korolev said that the legislative framework for the new method of tariff regulation – “alternative boiler-house” to a considerable extent is ready. The relevant laws are passed, the Government issued several decrees and more acts will be adopted in the near future.

“Alternative boiler-house” is a mix of tariff and antimonopoly regulation. Hopefully, several alternative boiler-house projects will be launched already this year. For example, in the near future, an alternative boiler-house will start in Rubtsovsk, the Altai region. It will create a zone free from tariff setting”, explained Vitaly Korolev.

According to Deputy Head of FAS, the decision on shifting to alternative boiler-house in a region should be made in view of the positions of consumers and municipal authorities.

“The ceiling price and conditions, under which the parties can reach an agreement, will have a significant impact upon long-term well-being of consumers and how much they should pay. The norm on coordinating with the regional authorities is included in the law. It also comprises the norms on antimonopoly control.  The subject and object are determined, it includes prices and heating load distribution”, stated Deputy Head of FAS.

Vitaly Korolev also touched modernization of electric power facilities.  “Modernization requires considerable financial investments, but tit should not lead to increased tariffs”, pointed out Deputy Head of FAS. “Payment on capacity supply contracts will be replaced. In my view, an important issue is which capacities should fall under the modernization programme”.

In his opinion, alternative boiler-house and modernization solution will have a positive effect upon investment attractiveness of the heating supply and electric power markets.

“These mechanisms are mutually supportive and can be used in parallel", concluded Vitaly Korolev.