RESOLVING PRE-TRIAL TARIFF DISPUTES, FAS MAKES DECISIONS IN VIEW OF ALL EXPOSED VIOLATIONS
Investigating such cases, FAS Commission can go beyond the claim subject
On 16 October 2019, the “National Workshop on Tariff Regulation in 2019 and the goals of regulators for 2020" in Crimea included a session on “Pre-Trial consideration of disputes and disagreements”.
Head of FAS Department for Regional Tariff Regulation, Yulia Yudina, made a report on enforcement practice in tariff regulation and the outcome of control efforts in this field.
She highlighted the advantages of pre-trial settlement of tariff disputes and disagreements before going to Court.
Pre-trial settlement can be use in disagreements in the electric power industry, heating supply, water supply and drainage; disputes associated with payments for technological connection to electric power networks and setting and applying tariffs of natural monopolies.
According to Yulia Yudina, FAS Commission, resolving pre-trial disputes, can go beyond the claim subject.
She explained that “if violations of the tariff regulation law are exposed in the course of dispute consideration, the Commission makes a decision in view of all exposed violations. Courts of different Instances confirmed that the antimonopoly authority can go beyond the dispute subject”.
The “boundaries” are also set for executing FAS decisions, and the deadline for executing decisions can be extended based on a reasoned petition.
Making decisions, FAS Commission takes into account social-and-economic factors and the consequences of its decisions.
“For example, if having considered a dispute it is established that some costs items are unreasonably excluded from the necessary gross revenue (NGR) of a regulated entity, FAS can order to take such costs into account to avoid a sharp growth of tariffs, separating into several regulatory periods. A similar approach is apply to exclude considerable unreasonable expenses from NGR”, informed Yulia Yudina.
Pre-trial disputes do not end with making a decision.
Yulia Yudina emphasized that “we control execution of all decisions made and in case of non-execution; we hold liable entities that failed to execute the decision”.
According to Deputy Head of FAS Department for Regulating the Housing-and-Utilities Sector, Alexander Fedyakov, multiple complaints and statements regarding solid municipal waste treatment have been considered this year.
Alexander Fedyakovinformed that “there is no practice of pre-trial disputes and disagreements in solid municipal waste treatment. The exposed violations are eliminated by FAS issuing orders to regulators”.
A draft law on the foundations of state regulation of prices/tariffs excludes pre-trial dispute and disagreement resolution and introduces the procedure for considering violations of the tariff law similarly to the cases on antimonopoly violations.
The National Workshop on Tariff Regulation in 2019 and the goals of regulators for 2020 took place on 15 - 17 October in the Republic of Crimea. The event participants discussed tariff regulation of the telecommunications sector, gas supply, heating supply and solid municipal waste treatment.
* № 533 Decree of the Government of the Russian Federation and № 827/18 FAS Order
Background:
The interim results of control-and supervision efforts in 2019:
- Pre-trial disputes consideration: 215
- Abolished decisions of regional regulators: 10
- Issued orders to eliminate exposed violations: 93
- Drawn protocols on administrative violations: 39