FAS ORDERED TO CHECK THE ACTUAL EXECUTION OF GASIFICATION PROGRAMS IN THE KABARDINO-BALKARIAN REPUBLIC FROM 2014 TO 2020

The authority revealed violations in the actions of the State Committee on Tariffs of the Republic

In June 2023, FAS Russia conducted an unscheduled on-site inspection of the regional regulator for the validity of special surcharges to tariffs established in the period 2015-2020 for gas transportation services through the networks of Gazprom gas distribution Nalchik JSC.

During the inspection, the authority revealed that the gas distribution organization received targeted funds in the form of proceeds from a special supplement to finance gasification programs. However, every year the company did not develop them in full and violated the deadlines for the construction of gas pipelines.

In turn, the regulator did not properly monitor the implementation of measures for gasification programs, which resulted in funding of new programs without taking into account the funds underutilized by the gas distribution company.

Based on the results of the audit, FAS Russia issued an order to the State Committee of the Kabardino-Balkarian Republic to eliminate the violations identified, conduct an additional analysis of the validity of the size of special allowances to identify unused funds.

Besides, the State Committee on Tariffs and Housing Supervision of KBR needs to check the actual implementation of gasification programs for the period 2014-2020 by December 1, 2023.