SMART RECORD-KEEPING AND BENCHMARKING SYSTEMS BECAME THE FOCUS OF DISCUSSION

Experts discussed proposals on accounting the costs of installing smart registering systems in tariff decision-making in the regions of the Russian Federation

The session of the Working Group on tariff regulation in the electric power industry and the housing-and-utility sector at FAS Expert Council on the electric power industry and the housing-and-utility sector on 11 September 2019 was opened by Head of FAS Department for Regulating the Electric Power Industry, Dmitry Vasiliev.

He pointed out the Antimonopoly Service drafts documents for develop electric power registering systems in Russia.

The experts discussed proposals on registering the costs for installing smart registering systems for tariff decision-making in regions of Russia. Deputy Head for the Department of Electric Power Regulation, Sergey Dudkin made a report, presenting a formula and the principle for registering the relevant expenses of providers of last resort and grid companies.

Representatives of the expert community discussed the issues, pointing out at the need for an integrated solution in this field. In particular, the most pressing are the final requirements for smart metering devices that are not approved at the moment, and estimating the costs of integrated project execution in view of all requirements for information protection and security.

Also, proposals were made on further intertwining of electric power tariffs for the population shifting responsibility for installing new modern metering devices directly on resource suppliers.

The second item on the agenda concerned a new version of a draft Decree of the Government of the Russian Federation on tariff setting for the services of electric power transmission using a comparative method.

Dmitry Vasiliev pointed out that “according to FAS estimates, the economic effect from benchmarking on average reduces tariffs forelectric power transmission services. Benchmarking regulation undoubtedly fits electric power transmission services, above all providing transparent and easy estimates, removing subjectivity from decision-making and forming incentives to enhance efficiency of grid companies”.