FAS SUMMARIZED RESULTS OF THE 2023 TARIFF CAMPAIGN

Measures taken by the FAS Russia to improve tariff regulation were announced at a workshop in Sochi

Vitaly Korolev, Deputy Head of the FAS Russia, spoke about the tools for modernization of utility infrastructure. These include concessions, investment programs, “alternative boiler room” and budget support.

According to regional tariff authorities, 281 billion rubles were attracted to the housing and utility services: heat supply – 151, water supply – 42, water disposal – 66, MSW – 22.

The Government of the Russian Federation has also expanded the possibilities of supporting utility infrastructure at the expense of the National Welfare Fund and other borrowed funds. The resource supply company, at the request of a developer, may build engineering networks for heat, water supply, and water disposal using the resources of NWF.

Vitaly Korolev noted that the FAS Russia will adjust the mechanism of long-term indices. It will involve the targeted direction of investments and their transparent use in the modernization and repair of facilities.

The Deputy Head of the FAS Russia touched upon the topic of gasification. Currently, 1,154,755 applications have been concluded (96% of those accepted), 925,144 (80%) have been executed. For the rest, the FAS Russia is now working jointly with gas distribution organizations and regions.

Besides, he said that the gasification potential of SNT (garden non-profit association) is up to 1.5 million households.

Sergey Puzyrevsky, Stats-Secretary – Deputy Head of the FAS Russia, spoke about the results of the Authority's control and supervisory activities in 2023.

Last year, the FAS Russia conducted 60 control activities, following the results of which the Authority issued 117 orders to eliminate the identified violations.

Sergey Puzyrevsky noted that the FAS Russia strengthened cooperation with the prosecutor's office and other law enforcement agencies, as well as with Rosfinmonitoring and the Accounts Chamber of the Russian Federation.

In 2023, 23.1 billion rubles of unjustified funds were revealed. 11.1 billion rubles were excluded from them for 2024. It allows to avoid a significant increase in tariffs.

Sergey Puzyrevsky also spoke about new approaches in control. Thus, from January 1, 2024, regional offices of the FAS Russia, on behalf of the central office of the Authority, may conduct unscheduled on-site and documentary inspections in the field of tariff regulation. This enables a more effective response to cases of unjustified tariff increases.

In February of this year the regional offices of the FAS Russia verified the economic feasibility of fuel costs included in the tariffs of heat supplying organizations in 82 constituent entities of the Russian Federation. Orders to eliminate violations will be issued.

He also noted that in the first quarter of 2024, following the results of monitoring in the field of MSW, 19 orders were issued for a total amount of more than 2 billion rubles.

Gennady Magazinov also announced proposals for the “adjustment” of differentiated tariffs. Improvements will be aimed at determining the limit value of the third consumption range. It is proposed at the first stage to determine it at the level of 9375 kWh, and in the future to make a more flexible adjustment of this parameter based on the regional characteristics of each constituent entity of the Russian Federation, as well as seasonal factors.

Besides, the efficiency of differential tariffs will increase if the second range of consumption volumes is excluded from the calculation of the citizens' payment index, similar to how it works now for the third range.

It is also advisable to introduce specific features for calculating the third range tariff, which would create effective incentives to combat gray mining in a number of regions.

In addition, Gennady Magazinov spoke about the introduction of a targeted depreciation mechanism. It allows to increase the volume of investments in the industry. Depreciation costs will be included in the required gross revenue of the TCO, subject to the availability of an investment program. According to the FAS Russia, the initiative will allow tariff funds to be allocated for investments and repairs, which, in turn, will ensure the reliability and quality of electric grid facilities.