FAS ABOLISHED DECISIONS OF THE ALTAI REGION TARIFF REGULATOR

Efforts of the competition authority can lead to the decrease in tariffs on average to 4%

FAS ordered Altai Regional Office on State Regulation of Prices and Tariffs to abolish decisions on adjusting the tariffs for heating energy, water supply drainage for unitary enterprises in the region by 1 December 2018.

As the antimonopoly body established, the Office included the estimated business profit for state and municipal unitary enterprises in the tariffs.

Head of FAS Department for Regulating the Housing-and-Utility Complex, Alexei Matuykhin, clarified: “We’d like to remind that until 2018 state and municipal unitary enterprises spent their estimated business profit at their discretion — they had no obligation to allocated it for increasing their efficiency. After the Government of the Russian Federation issued a Decree in 2017, it is not accounted for calculating the tariffs for future periods, which will reduce the tariff or curb their growth”.

FAS found that Altai Regional Office on State Regulation of Prices and Tariffs included the estimated business profit in the tariffs of “Energetic”, “Slavgorod Water Services Company”, “Kusakovskoye” Municipal Unitary Enterprises and the Municipal Unitary Enterprise of Siberian Closed Administrative-Territorial Unit of the Altai Region.

“After the regional tariff regulator abolishes its decisions, consumer tariffs in several municipalities in the Altai region will reduce, according to our estimates, on average to  4%”, informed Deputy Head of FAS Vitaly Korolev.