Russian govt unhappy with rising electricity prices - Putin
MOSCOW. Feb 17 (Interfax) - Russian Prime Minister Vladimir Putin said he was dissatisfied with rising electricity prices, which have gone up by more than the planned 15% for 2010 in many Russian regions.
He demanded that the regions cap tariff growth at 15%.
"Ok, it's decided: 15% and no more, and I ask you to stock to that," he said at a meeting of the Government Presidium on Thursday.
"For 38 regions and separate customer groups heightened forecasts are now appearing. Increases are posted for 41% of federal subjects and 56% of regional subjects," Energy Minister Sergei Shmatko said at the meeting.
Shmatko said that in the first group of factors there had an increase in fuel prices, an increase for gas prices was 15%, as well as an undervalued reform of the tariff base in several regions during the initial phase of reforming the electricity sector. Factoring in this in line with daily realities meant a substantial upswing in tariffs.
Shmatko added that this is an investment markup for nuclear power plants and hydroelectric power plants, high tariffs for forced generation, as well as increasing financing sources through tariffs for Federal Grid Company and IDGC Holding's investment programs.
Putin gave the government a week to ten days to report on measured suggested by Russian Deputy Prime Minister Igor Sechin to curb price growth for electricity.
Sechin suggested not adjusting payment for power capacity for inflation could save 12 billion rubles, altering the procedure for calculating tariffs for capacity operating in a forced regime up to 7 billion rubles, lowering targeted investments for nuclear and hydroplants 15 billion rubles, leveling off FGC tariffs - 5 billion rubles and altering the approach to the regional grid operators' investment programs - 25 billion rubles.
Deputy Economic Development Minister Andrei Klepach said it would be hard to cap electricity tariff growth at 15% without raising additional funds.