COMMITTEES OF THE FEDERATION COUNCIL SUPPORTED FAS DRAFT LAW ON LIMITING THE RIGHTS OF REGIONS TO EXCEED ELECTRIC GRID TARIFFS

The Federation Council will consider document on 26 July 2019

On 25 July 2019, the Committees on Economic Policy, Federal Structure, Regional Policy, Local Self-Governance, and Affairs of the North approved the amendments to the Law on the electric power industry. The amendments are drafted by FAS to improve tariff regulation.

On the same day, the draft law of the Antimonopoly Service is adopted in the final, third reading by the State Duma.

According to Deputy Head of FAS Vitaly Korolev, the draft law is designed to exclude excessive growth of tariffs for the electric power transmission services for end consumers.

“It should be emphasized that the draft law provides for long-term tariff-setting, which will add regulatory stability and predictability for all participants”, saidDeputy Head of FAS.

Vitaly Korolev explained that the current regulatory framework allows regional tariff regulators to exceed the federal ceiling level for electric power transmission tariffs if it is due to an investment programme adopted by a company. FAS approval is not required. Deputy Head of FAS gave an example from the housing-and-utilities sector: after the powers were transferred from the Federal Tariff Service to FAS, a downward trend has emerged for exceeding the index of growth of utility payments from the population.

“Thus, FAS amendments are aimed at fuller protection of consumer rights and fair and reasonable payment for electric power transmission services”, explained Vitaly Korolev.

Representatives of the Committees of the Federation Councilpositively evaluated the efforts of the antimonopoly body to eliminate the gaps in the tariff legislation and recommended to adopt the draft law by the Federation Council of the Russian Federation.