FAS DISCUSSED PROGRESS OF TARIFF CAMPAIGN IN ELECTRIC POWER INDUSTRY FOR 2024

Gennady Magazinov presented report on tariff regulation at the All-Russian meeting on the preparation of subjects of electric power and utilities for the passage of the heating season

The work on the approval of the consolidated forecast balance and tariff limits was completed a month earlier than the standard deadlines. It is done so that regional regulators have the opportunity to meet the deadlines for approving tariffs.

In 2023, it was decided to extend the specifics of the application of legislation in the electric power industry to new territories too. The tariff campaign in these regions is close to completion. Tariffs for a Single electricity buyer will be approved by the end of the year, the authority has prepared a corresponding draft resolution of the Government of the Russian Federation.

FAS Russia continues its efforts to ensure a balance the interests of regional grid organizations (RGO) and the region. Currently, the authority is working on 5 regulatory agreements for 4 subjects of the Russian Federation. These are the first agreements concluded pursuant to the new resolution of the Government of the Russian Federation.*

Gennady Magazinov said that the agency is developing stimulating approaches to introduce differentiated tariffs on the volume of consumption for the population. This measure is one of the tools to reduce the volume of cross–subsidization. It is also aimed at protecting conscientious consumers who use electricity only for household needs.

Besides, FAS Russia is working on improving the tariff regulation of the grid complex. These are new approaches to defining depreciation criteria and the introducing the concept of targeted depreciation to apply it to investments. The authority is considering the issue of limiting the maximum value of unit maintenance costs for a unit of electric grid equipment for the largest RGO in the region. The agency is also working on the introduction of standards in the power grid complex.

For reference:

* Decree of the Government of the Russian Federation No. 1416