CROSS-SUBSIDISING IN THE ELECTRIC POWER INDUSTRY REQUIRES AN INTEGRATED AND SYSTEMIC APPROACH

30-05-2018 | 14:17

FAS representative described the trends in this sector of the electric power industry

 

On 25 May 2018, Head of FAS Department for Regulating the Electric Power Industry, Dmitry Vasiliev, was a speaker at the Round Table of the Energy Committee of the State Duma of the Russian Federation “Cross-subsidizing in the electric power industry, its impact on various sectors and the national economy in general, and measures to minimize it”.

 

An analysis of the issue shows that on average in Russia, the population and equated categories of consumers pay only 44 % of the economically justified tariffs for the electric power transmission services and in some subjects of the Russian Federation it only 15%.

 

Participants pointed out at reducing cross-subsidizing of the tariffs for electric power transmission services in 2014-2018 in Russia, and proposed measures to further reduce cross-subsidizing.

 

“A totality of measures to counter cross-subsidizing should be supported with a motivational system for the subjects of the Russian Federation”, summed up Dmitry Vasiliev. “It is necessary to clearly outline the allowed limits and come up with a Road Map for several years ahead in view of all regional specifics formed at present”.