THE FEDERATION COUNCIL APPROVED DRAFT AMENDMENTS TO THE LAW ON THE ELECTRIC POWER INDUSTRY

The amendments were drafted by FAS. Now they will be forwarded to the President of the Russian Federation

“Pricing is constantly on the agenda of the Antimonopoly Service. A number of tariff “packages” of regulatory acts were drafted and adopted in the past several years. FAS draft law on restricting the rights of regions to exceed the federal level of grid tariffs is another document designed to eliminate problems in the pricing system of Russia”, said Deputy Head of FAS Vitaly Korolev after the meeting of the Federation Council.

He informed that the social-and-economic forecast sets 3% electric power tariff growth; however, setting tariffs, regional tariff bodies consider investment programmes of grid companies and ultimately exceed the level set by the federal regulator, which results in a considerable tariff increase.  

“After final adoption of the document, the ban on exceeding the maximum tariffs set at the federal level without FAS approvals and evaluation of the economic consequences of such decisions will come into effect”, explained Vitaly Korolev.

Deputy Head of FAS pointed out that during discussions at various sites, corrections were made to provide long-term tariff regulation and regulatory contracts.