FAS introduces elements of pro-competitive tariff policy in regulatory documents

For instance, benchmarking will be introduced in the tariff-setting Methodology for the services of natural monopolies on transporting oil and oil products via major pipelines

The Antimonopoly Service devised a document that will help enhance decision-making efficiency. On 14 February 2017, the Methodological Tariff Council pointed out that the “costs” method is formalized in many valid regulatory documents. In the FAS opinion, it leads to increased non-core assets of monopolies and increasing consumer tariffs.

FAS plans to maximally distance from this method and gradually move to the comparable market method, particularly, “benchmarking”.

At the meeting FAS representatives stated that the method is already applied in pract5ice but it is not formalized in regulatory documents.

In making tariff decisions, particularly, on transporting oil and gas via pipelines, the Antimonopoly Service had to revise the current version of the Methodology since it does not match the current realities of market performance.

At the moment, the draft Methodology includes some elements of a pro-competitive tariff policy.

It is expected that the document shall come into force this year.