FAS PRESENTED A LIST OF DOCUMENTS TO EVALUATE ECONOMIC FEASIBILIITY OF A CLAIM

In the opinion of the competition authority, it will help to prevent violations of the antimonopoly law in pricing

The All-Russian tariff regulation workshop in Yalta included a session on “Practical issues in prejudicial consideration of disputes and disagreements”.

Deputy Head of FAS Department for Regional Tariff Regulation, Ivan Stepanenko, reminded that in 2017 the Antimonopoly Service carried out control-and-monitoring events and inspections. FAS analysis exposed two main types of standard violations by regional tariff regulators (Regional Energy Commissions) in the course of setting tariffs for resource suppliers.  

To prevent future violations, FAS drafted a list of documents for examining economic feasibility of a claim. It includes the cost items, included in the tariff and a list of data that must be submitted.

“In our opinion, such a document should be come a “manual” for the Regional Energy Commissions to prevent violations in tariff-setting”, added Ivan Stepanenko.

Then he described new aspects of prejudicial disputes in view of the Decree of the Government of the Russian Federation on approving a common procedure for considering tariff disputes and disagreements.

“The subject can be the amount of economically justified expenses and physical indicators accounted for when setting tariffs for goods and services as well as choosing the price regulation method. Earlier different spheres of regulation had different rules and procedures, established by several Decrees of the Government of Russia”, informedIvan Stepanenko.

“Common rules will apply for prejudicial disputes and disagreements on tariff rates for heat-, water and electricity supply, water drainage, technological connection to the mains, services of state monopolies, etc. The grounds for considering a dispute by FAS is a statement filed by one of the parties, which should be filed no later than three months after the party’s rights were infringed. FAS has ten days to make a decision to consider the case or to dismiss it. A new rule is a requirement to the respondents to give a written response to the statement, and all arguments and objections must be evaluated with evidence and references to the law.  Moreover, it must be done within five calendar days after receiving a notice about accepting the statement for consideration. The deadline for considering all disputes shall be 90 days. Previously they varied from 30 to 90 days for different types of regulated activities, and there was no timeline at all in heating supply”, said Deputy Head of FAS Department for Regional Tariff Regulation.

At the end of the session, FAS officers answered all questions from regional tariff regulators and market participants.