Economy ministry proposes above-inflation heat rate hikes starting in 2017
MOSCOW. Nov 7 (Interfax) - The Economic Development Ministry is proposing to raise heat tariffs by more than the rate of inflation, according to the draft long-term economic forecast to 2030.
Heat tariffs in Russia will be raised by an average of 5% per year in 2016-2020 according to the conservative growth scenario, by 5.1% according to the moderately optimistic scenario and by 5.9% according to the accelerated scenario.
The growth of heat tariffs will be slightly above inflation in all scenarios due to the growth of prices for energy commodities and the need for investment, the ministry materials state.
The ministry is expecting a gradual transition to long-term regulation of heat tariffs for three- to five-year periods based on the regulatory asset base (RAB) model with annual savings of operating costs of 1-1.5%. The conservative scenario anticipates the transition will be made starting in 2017, while the moderately optimistic and accelerated scenarios project it will be made in 2015.
In the event of stagnation or a dramatic economic slowdown, tariffs will be indexed at the level of inflation with a reduction factor depending on the economic situation, the forecast states.
For 2014, the growth of heat tariffs has been set at the level of inflation in the previous year with a reduction factor of 0.7, and in 2015-2016 the tariff will be set according to the same principle.
The ministry materials state that the growth of regulated tariffs for heat in the long-term is determined taking into account the transition to long-term contractual relations with the price of heat for consumers limited to no more than the tariff of the "alternative boiler house." The development of heat production by combined generation facilities and reduction of heat production by independent boiler houses is also taken into account. Cross subsidies between heat and electricity are expected to decrease.
