DMITRY VASILIEV: ACHIEVING SHAPED PLANS WILL ENABLE RADICAL RECONSIDERATION OF REGULATORY APPROACHES

The participants of the session on “Experience and prospects of pro-competitive tariff regulation” discussed state-of-the-art principles of tariff regulation, stage-by-stage reduction of cross-subsidies, launching and maintaining long-term tariff policy, changing the role of regulators and means of control and price (tariff) regulation used by them

The discussion took place at the V International Research-to-Practice Conference – “Antimonopoly Policy: Science, Practice, Education” in Skolkovo Innovation Centre on 19 November 2019.

Foreign attendees described their experience and modern trends in the regulated sectors, emergence of package products for consumers supplying several resources and related services under a single contract.

Head of FAS Department for Regulating the Electric Power Industry highlighted the main tasks for improving antimonopoly and tariff policy, particularly, executing the National Competition Development Plan.

He paid special attention to digital transformation projects in the electric power industry, based on use of big data and analytical software solutions.

Dmitry Vasiliev pointed out: “Cardinal improvements in preventing and suppressing violations, increasing transparency, predictability and clarity of regulation and pricing, excluding tariff discrimination and setting long-term tariffs – all this is far from an exhaustive list of areas, fulfilling which is already planned and is inseparably connected with digital solutions”.

He described the work carried out by FAS in 2019, emphasizing that a huge information base is collected and systematized, agreements on information exchange with infrastructure entities (operator stations and ATS) are concluded, the first digitalization phase of the Energy Balance Procedure started, “traffic lights” pilot projects are launched; and a “tariff calculator” is developed and awaiting launch. For faster and better-quality antimonopoly control, analytical windows for wholesale and retail markets of electric power and capacity are put in place.

“Achieving the shaped plans will enable radical reconsideration of regulatory approaches in the part of reducing violations to the minimum through preventative modalities. As for business, the most important is to create clear, predictable in the long-run and non-discriminatory conditions for regulated organizations that stimulate improvements of economic efficiency and performance. Consumers will certainly win as a result of such a policy, obtaining services at lower prices (tariffs)”, summed up Dmitry Vasiliev.