DIFFERENTIATED TARIFFS IN THE ELECTRIC ENERGY INDUSTRY: RISKS AND OPPORTUNITIES
STRATEGIC SESSION
16:00–18:00 April 24 2024
CONFERENCE HALL F1, PAVILION F
Organizers:
Energy Consumers Association, ExpoForum International
Moderator:
Valery Presnyakov
Editor-in-Chief, Power and Industry of Russia Newspaper Speakers:
Dmitry Vasiliev
Head of the Department for Regulation over Electric Power Industry, Russian Federal Antimonopoly Service
Valery Dzyubenko
Director, Energy Consumers Association
Topic of the report: Cross-subsidies reduction arrangements
Oleg Efremenkov
Head of Support for Markets with Regulated Price Formation, NP Market Council Association
Natalia Nevmerzhitskaya
Chairperson of the Management Board, Association of Guaranteed Suppliers and Energy Service Companies
Oleg Ogienko
Government Relations Director, Bitriver Rus
Sergey Sasim
Director, Center Electric Power Industry Research Center, Institute of Economics and Regulation of Infrastructure Sectors, Higher School of Economics
Vladimir Tupikin
Head of Energy and Resources at SIBUR Holding, member of Supervisory Board at Association NP Market Council, member of the Government Committee for Electric Energy Development, Plenary Session of RIEF 2024
DISCUSSION:
At least for last 20 years, the citizens in most of the Russian regions have been undercharged for the electric energy they use, whereas industrial consumers have to pay extra to energy producers and providers for the latter to keep the municipal tariffs low through the cross-subsidies mechanism.The very idea of letting the citizens pay for electric energy at a special price is natural for any socially focused government. On the other hand, without proper control regulations on the part of the regional agencies and regulation bodies, those who were not entitled to use this privilege somehow managed to start using it. As a result, disreputable business people, who had connected to the mains illegally and who are consuming electricity on a commercial scale, as well as extensive households that can be classified as luxurious pay for what they use at a special price intended for the citizens. Differently speaking, they are making the state budget and the industrialists to share their expenses and pay for them. Thus, minor businesses like locksmiths’, metal and wood workshops arranged in old barns, bath houses, illegal mining farms, villas with heated swimming pools, alleys, and parking lots have the industry or the state pay for the electricity they consume.
The participants of the event will talk about one of the most pressing matters of the electric energy industry, which is efficiency of cross-subsidies.
During the event, the talkers will try to answer these and other questions. Experts from Energy Consumers Association will present a review on the tariff campaign results in the Russian regions and talk about effective mechanisms that can be used to reduce the cross-subsidies amount and yet retain special prices for those who really need them.
Top officials of the industry and regulation bodies, as well as major industrial enterprises that use electricity are invited to take part in the discussion along with financial analysts and industrial experts.