THAT EXCEED THE CAP INDICES WITHOUT FAS CONSENT FORMS GROUNDS TO ISSUE AN ORDER
The transition to benchmarking in the housing-and-utility sector is closely related to utility payments of the population
On 16 October 2019, the participants of the National Workshop on Tariff Regulation in 2019 discussed how to set and control the indices for utility payments by the population in 2020.
According to Deputy Head of FAS Department for Regulating the Housing-and-Utilities Sector, Anastasia Adonina, a transition to benchmarking in tariff-setting for heating- and water supply is closely related to payments by the population for these services.
The efforts to improve tariff regulation in the electrci power industry and the housing-and-utilities sector are undertaken to fulfill the instructions from the President of Russia, including introduction of the benchmarking principles in tariff-setting and long-term tariff-setting (5-10 years).
In summer 2019 amendments were made to № 400 Government Decree*, establishing the foundation for indices of changing the charges upon the population for utility services.
The amendments narrow the ground for exceeding the cap indices, the deadline for providing data and extended the list of information to be specified in a decision for setting cap indices. The list include, in particular, data about the population size and the share of the population that are affected if the index is increased, the overall addition amount to utility payments of the population as a result of setting cap indices for a municipality exceeding the index established for the particular region of Russia.
In June 2019, a mechanism for approving with the FAS overrun by municipalities was approved. Explaining the new procedure Anastasia Adonina clarified that in case of a planned rise, Head of a region should submit to FAS for approval an application and a package of documents strictly by 10 November. The period for approval is no more than 30 calendar days, with a possibility to extend for 10 days if it is necessary to request additional information.
She concluded: “There is another important aspect. Approving cal indices without FAS consent forms the grounds to issue an order”.
Deputy Head of FAS Department for Regulating the Housing-and-Utilities Sector, Alexander Fedyakov, reviewed the adopted and under-development Regulations and Guidelines in tariff-setting.
Background:
The National Workshop on Tariff Regulation in 2019 and the goals of regulators for 2020 takes place on 15 - 17 October in the Republic of Crimea. The event participants are discussing tariff regulation of the telecommunications sector, gas supply, heating supply and solid municipal waste treatment.
* № 756 Decree of the Government of the Russian Federation of 13.06.2019 came into effect on 28.06.2019.