FAS ISSUED A LEGITIMATE ORDER TO THE ASTRAKHAN REGIONAL TARIFF SERVICE

The body was including economically unreasonable costs (75 million RUB) in tariff of “Ecocentre” Ltd. – the regional solid municipal waste treatment operator

In September 2018, FAS ordered Astrakhan Regional Tariff Service to eliminate violations of the current tariff law in the field of solid municipal waste treatment in order to reduce tariffs for consumers.

Apart from including economically unjustified costs in the tariff, when calculating the tariff Astrakhan Regional Tariff Service unreasonably considered the number of the administrative personnel, which increases considerably the staff involved in production and repair.

The regional tariff regulator, however, disagreed with FAS order and filed a lawsuit.

Moscow Arbitration Court, Appeal Court and now Cassation Court confirmed legitimacy of the FAS decision.

Head of FAS Department for Housing-and-Utility Regulation, Alexei Matyukhin commented the Court ruling: “Already the third Court confirmed FAS decision regarding Astrakhan Regional Tariff Service. It should become an additional reminder for regional tariff regulators about FAS consistent efforts on exposing and suppressing violations of tariff law”.