FAS PROPOSED REGIONAL ENERGY COMMISSIONS TO INCREASE NUMBER OF COMMUTER RAILWAY ROUTES

A relevant letter is sent to regional authorities

FAS recommends that making tariff decisions for regulating commuter passenger transportation by rail for the next period, Regional Energy Commissions should evaluate jointly with the authorities and the subjects of regulation the expediency of increasing the number of routes in the interests of passengers.

“Leasing wagons, companies pay a particular amount per year to “Russian Railways”. If the number of routes is increased, then the rate per one passenger will most likely decrease, the company will be able to gain more profit and there will be no need for additional subsidizing and increasing tariffs. We suggest that the Regional Energy Companies should estimate an optimal number of routes, that will be beneficial for both companies and passengers”, commented Deputy Head of FAS Alexander Redko.

FAS recommends to make estimates using the approved Guidelines*.

* No.1649/17 FAS Order "On approving the method for estimating an economically justified level of costs taken into account setting an economically justified tariff level for the services of natural monopolies in commuter passenger transportation by railway in common use" of 05.12.2017;

No.1109/18 FAS Order "On approving the method for payment rates for the services on leasing railway rolling stock, management, operation, technical maintenance and repair provided to companies in the sector of commuter passenger transportation by railway in common use and fixed payment rates for the services related to leasing rolling stock offered by companies that own rolling stock" of 08.08.2018.