TARIFF REGUALTION IN THE FAR EAST HAS UNDERGONE POSITIVE CHANGES IN THE PAST YEAR

A long-term regulatory period in the electric power industry has started in the region which earlier was not required in the areas of isolated energy systems

During the session on tariff-setting in the electric power industry in the Far East, Deputy Head of FAS Department for Regulating the Electric Power Industry, Sergey Dudkin informed that №64 Government Decree of 30.01.2019 introduces a new long-term regulation for calculating electric power tariffs for isolated areas, not connected to the Unified Energy System of Russia.

"Long-term regulation will help increase efficiency of electric power generation and reduce the costs due to modernization of generating capacities, particularly, with use of renewable energy sources together with traditional diesel generation", stated Sergey Dudkin.

He said that producers of electrci power will be able to keep the savings gained through the measures aimed at energy saving and energy efficiency enhancement for the pay-back period and two years after it.

Head of FAS Department for Regulating the Electric Power Industry, Dmitry Vasiliev reported that  leveling of electric power tariffs to the average Russian level for particular producers in the Far East Federal District is extended till 2028.

In 2019 the mark-up in the Far East is 32.1 billion RUB and in 2018 it was 35 billion RUB.

"Consumers of the 1 and 2 price zones are ready to support the Far East in leveling electrci power tariffs; at the same time, however, there is a question about the performance outcome and efficiency of the spheres that should emerge due to such support”, pointed out Dmitry Vasiliev.

A decision was made to for the Far East Tariff Regulation Working Group at FAS Expert Council on the electric power industry. It will comprise representatives of Regional Energy Commissions, the expert community and companies.

The event took place on 16 October 2019 at the National Tariff Regulation Workshop.