FORTHCOMING CHANGES IN GAS SUPPLY

The prospects for developing the gas industry were discussed at a session of the National Tariff Regulation Workshop – 2019 in Crimea on 16 October

Head of FAS Department for Regulating the Fuel-and-Energy Complex and Chemistry, Dmitry Makhonin, discussed the expected changes in the law on gas supply. They concern the Plan on “Transforming business climate”, which is approved by the Government of the Russian Federation*.

Dmitry Makhonin stated that “the Plan will decrease administrative barriers associated with technological connection to the gas-distribution networks”.

Ilya Mamin, Head of the Gas Industry Unit, FAS Department for Regulating the Fuel-and-Energy Complex and Chemistry, gave more details about the legislative changes.

He pointed out that the Governmental order endorsing the “Transforming business climate” Plan is drafted to fulfill the National Competition Development Plan** and the Road Map (Action Plan) for developing competition in sectors of the economy and is designed to improve the investment climate in 12 areas.

Executing the “Transforming business climate” Plan in gas supply will reduce the timeline for connecting to gas-distribution networks, decrease the fee for technological connection and its time limits by transferring interaction between gas distributors and the regional authorities in the field of tariff regulation in the digital format.

Ilya Mamin also described the Rules for non-discriminatory access to the gas transportation services via gas-distribution networks. A draft Governmental Decree shapes the common principles and the procedure for access to gas transportation services under the equal access conditions, spells out the procedures and conditions for offering gas transportation services and the procedure for concluding gas transportation contracts, payment for such services, etc.

In view of Dmitry Makhonin, “the Decree will enhance accessibility of the gas-transportation infrastructure and economic efficiency of the gas transportation services”.

Head of FAS Department for Regulating the Fuel-and-Energy Complex and Chemistry expressed confidence in speedy adopting the draft Decree and emphasized that fulfilling it will ultimately “enable sustainable economic growth and development and level the conditions for economic operations between consumers of the gas transportation services”.

* № 20-r Order of the Government of the Russian Federation “On approving the “Transforming business climate” Plan and invalidating acts of the Government of the Russian Federation” of 17.01.2019;

** Approved by № 618 Order of the President of the Russian Federation “On the main directions of the state policy towards competition development” of 21.12.2017.