FAS: REGULATORY AGREEMENTS WILL BE IMPLEMENTED IN HOUSING AND COMMUNAL SERVICES TO UPGRADE WATER PIPES AND HEATING MAINS

Tariffs will be long-term, and companies will commit themselves to renewing the utility sector

The FAS Russia, on behalf of the Government of the Russian Federation, will prepare documents for amendments to the legislation.

A new additional instrument of regulatory agreements will increase the transparency and efficiency of tariff regulation and stimulate housing and utilities companies to reduce costs. The instrument provides for the conclusion of a certain contract between the organization and the authorities of the region.

According to the Authority, such an approach to regulation will ensure the predictability of the tariff level in the long-term, subject to compliance with all investment obligations. The company will have to send funds for the necessary modernization of housing and communal services facilities and put them into operation on time.

It will attract investments in housing and communal services to upgrade heating mains, water pipes and other facilities. The Authority expects that regulatory agreements in housing and communal services can be concluded in 2023.

The FAS notes that a similar mechanism has already been developed in the electric power industry. Thus, the FAS Russia unifies existing approaches between infrastructure sectors of the economy.

The Authority draws attention to the fact that regulatory agreements will not lead to an unreasonable increase in tariffs for citizens for housing and communal services.