SERGEY PUZYREVSKY: DRAFT LAW ON TARIFFS WILL BE SUBMITTED TO THE STATE DUMA

Deputy Head of FAS discussed improving the law on tariff regulation at the Plenary session during the National Tariff Regulation Workshop – 2019

Sergey Puzyrevsky detailed a FAS draft law “On the foundations of state regulation of prices and tariffs”, which formalizes a list of regulated activities, determines common goals, the principles of regulation and the public control procedures.

“In September a refined version of the draft law was submitted to the Government. Now it is at the final stage and soon will b submitted to the State Duma [the parliament”], clarified Deputy Head of FAS.

He pointed out that “a big reform is carried out. The current system of regulatory acts in government tariff regulation is imperfect; it comprises more than 150 regulatory acts in the part of state regulation. The draft law is designed to unify the system and execute the reform”.

Deputy Head of FAS emphasized special significance that the draft law sets a common, exhaustive list of regulated tariffs in a single regulatory act, delineates the powers for establishing them between the Government, federal and regional authorities.

The draft law also formalizes the subjects and forms of public control (supervision), measures for eliminating the exposed violations and determines the procedure for inspecting execution of the regulator’s decisions.

Sergey Puzyrevsky concluded that “the new arrangements are devised in view of FAS experience for considering pre-trial disputes and disagreements as well as cases on violating the antimonopoly law. It ensures clear, transparent, contestable decision-making procedure on ascertaining the fact of violations and forms as list of response measures, enabling to efficiently eliminate violations of the law on state regulation of tariffs and their consequences”.

Sergey Puzyrevsky outlined the results of FAS control-and-supervision efforts in the field of tariff regulation in 2018:

“Last year 11 inspections of regulatory bodies were performed and more than 17.5 billion RUB, economically unreasonably included in tariffs, were exposed. As a result, 86 orders were issued”.

The major registered violations by regulators include breaching costs estimates for amortization and lease, bad debt receivables and other costs items.

He also covered the main pricing problems in the solid municipal waste sector.

Deputy Head of FAS pointed out that in the absence of an obligation to set costs standards, regulators must themselves analyze whether costs are economically justified.