FAS WILL DEVELOP MECHANISM FOR PRELIMINARY APPROVAL OF BIDDING TERMS FOR TRANSPORTATION OF MSW

Regional operators will have to send it to the tariff authority of the subject of the Russian Federation

This decision was made by a working group under the Expert Council in the Housing and Utilities Sector of FAS Russia. The costs of transporting municipal solid waste (MSW) make up a significant part of the tariff.

The law enforcement practice of the authority shows that with low competition at auctions, the cost of transporting garbage can lead to an increase in costs. It may eventually affect the tariff. In order to protect citizens from unjustified growth of tariffs for MSW, tariff authorities "smooth down" the necessary gross revenue of regional operators for several periods.

FAS Russia proposes to create a mechanism for preliminary coordination with the tariff regulatory authorities of the initial maximum contract price when bidding for the selection of companies that carry out garbage transportation. It will allow you to predict the tariff level for all consumers in advance and prevent violations. At the same time, control is maintained in terms of the prohibition of coordinated actions between authorities and entrepreneurs.

Besides, the working group under the Expert Council in the Housing and Utilities Sector discussed the issues of standards for the accumulation of MSW. In particular, payment for garbage disposal services by individual entrepreneurs and the self-employed.

In addition, market participants suggested that FAS Russia consider the introduction of targeted depreciation and the method of return on invested capital when setting tariffs in the field of MSW. According to industry representatives, it will allow attracting additional investments without increasing the tariff burden on the consumer.

The authority notes that market participants can send their proposals to the initiatives of the agency.