FAS PREVENTED GROWTH OF WATER SUPPLY TARIFFS IN THE IVANOVO REGION

FAS Russia denied the request of Shuisky Calico factory to include additional expenses in the approved tariff

FAS Russia has considered the application of cotton factory Shuisky Calico OJSC on disagreements with the Department of Energy and Tariffs of the Ivanovo region. The subject of consideration in the framework of the pre-trial settlement of the dispute was the validity of the inclusion of additional funds in the tariffs for cold water supply and sanitation services. In addition, the organization did not agree with the regulatory method.

The regional tariff authority has established the volume of the required gross revenue in the amount of 2.2 million rubles, while the organization considers it economically justified to include in the tariff expenses for the transportation of wastewater in the amount of 22 million rubles. In connection with the refusal of the regional tariff authority to increase the tariff for consumers, the company appealed to FAS Russia.

As part of the pre-trial settlement of disputes, the authority analyzed the economic feasibility of the costs proposed for inclusion in the tariff and concluded that there were no grounds for such a significant increase in the tariff. Besides, application of the comparison method when setting tariffs in relation to a regulated organization is justified*.

As a result of consideration of the dispute, FAS Russia supported the position of the Department of Energy and Tariffs of the Ivanovo Region and refused to include the costs of additional expenses in the tariff of the Shuisky Calico OJSC.

For reference:

*According to Paragraph 53 of the Pricing Framework No. 406, "the method of comparing analogues is used when setting tariffs for the transportation of wastewater in relation to a regulated organization carrying out this type of regulated activity in the area of activity of the guaranteeing organization, if the length of the drainage networks operated by this regulated organization does not exceed 10 kilometers in a centralized drainage system", the length of the drainage networks of Shuisky Calico OJSC is less than 10 kilometers