SINCE THE BEGINNING OF THE YEAR FAS RECIVED MORE THAN 30 APPLICATIONS FOR PRE-TRIAL SETTLEMENT

The electric power industry and heat supply have become the sectors, where the most questions are raised from both the regulators and regulated organizations

On 4 March2020, one of discussions atthe National Hands-On Workshop on “Evolution of tariff regulation in 2020: a step to the future" focused on the practice of pre-trial settlement considered by the officers of the antimonopoly bodies.

“Since the beginning of the year, 34 applications on pre-trial settlement in tariff regulation have been filed to FAS. A positive trend is observed – such applications are going down. For example, 85 cases were filed in a similar period last year, by 1 March 2019”, informed Deputy Head of FAS Department for Regional Tariff Regulation, Ivan Stepanenko.

Most often disputes occur in the electric power industry and heat supply. According to the statistics, out of 246 applications filed to the antimonopoly body in 2019, 116 applications concerned heat energy, 70 – water and 54 – electric power. Although there is no tariff dispute settlement procedure in the field of solid municipal waste, FAS receives a lot of complaints from the service consumers as well as resource suppliers.

“During the meeting, we discussed in detail the issues emerging in regulatory practice from the side of the regulators as well as regulated organizations. For example, electric power losses in networks, accounting for depreciation in tariffs, lease fee, doubling repair costs by owners and lease-holders, and others”, added Ivan Stepanenko.

Head of the Unit for Complaints in the Electric Power Industry, Anna Starostina, and Head of the Unit for Complaints in the Housing-and-Utilities Sector and Rail Transportation, Victoria Potapova answered questions from the workshop participants and described cases of pre-trial disputes considered by FAS.

Another discussion platform focused on developing the gas sector, its current sate, problems and prospects.

“The questions considered during the discussions concerned regulatory contracts, and 2020 tariff campaign, including approval of retail prices for liquefied gas. Some of the most controversial issues that generated the majority of questions from the audience related to the amendments to the guidelines on technological connection to gas-distribution networks, and a new federal law on regulation coming into effect”, summed up Head of the Gas Transportation Unit, FAS Department for Regulating the Fuel-and-Energy Complex and the Chemical Industry, Fatima Abaeva.

The discussion participants were able to ask questions to representatives of the antimonopoly authority concerning tariff regulation as well as legislative instruments.