12 Nov 2013 16:26

Economic Development Ministry proposals on long-term tariffs not final

MOSCOW. Nov 12 (Interfax) - The Economic Development Ministry's proposals on long-term tariffs are not final and they will be revised depending on the rate of economic growth, Deputy Economic Development Minister Andrei Klepach told reporters on Tuesday.

"These are general forecast matters. This is not the whole model [for setting tariffs]. There will be adjustments taking into account cyclical fluctuations [depending on the rate of economic growth]. The model is still being worked out," Klepach said when asked if the ministry's tariff proposals in its long-term economic forecast to 2030 are final. In the forecast, the ministry proposes indexing tariffs for gas and rail transport by the rate of inflation in the previous year starting in 2017.

In the forecast, the ministry also proposed to raise prices for gas and electricity for households, as well as passenger rail services, by more than the rate of inflation starting in 2017.

"There is a fundamental position and order that cross subsidies are supposed to be reduced. The reduction of cross subsidies is only possible if tariffs for households grow faster than for industry," Klepach said.