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Medvedev signs order on gas transport tariff regulation

In fact, the executive order makes it possible to postpone the introduction of the mechanism of the gas price discounts

MOSCOW, January 29 (Itar-Tass) – Russian Prime Minister Dmitry Medvedev signed the executive order on the improvement of state regulation of natural gas prices, the press service of the RF government reported.

“The document orders the Federal Tariff Service (FTS) to generalise by July 1, 2014 the practice of the setting and use of wholesale gas prices and submit to the RF government proposals on the transition, starting from January 1, 2015 from state regulation of wholesale gas prices to state regulation of tariffs for gas transportation services through main pipelines,” the Russian Cabinet explained.

In addition, the FTS will present its proposals on the timeframe and order of the use of mark-ups to wholesale gas prices and discounts from these prices applied by Gazprom.

In general, the amendments are intended to make the price burden on consumers not significantly different from parameters of Russia’s medium-term socio-economic development forecast. In fact, the executive order makes it possible to postpone the introduction of the mechanism of the gas price discounts.

“The analysis of the situation with the heat supply to consumers, especially people living in dilapidated or hazardous housing, shows that the rise in gas prices at tempos exceeding the parameters determined by the forecast would result in the growth of heating and hot water supply costs for these citizens,” the government noted.

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