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The Ministry of Energy commented on the sharp increase in electricity prices in 21 regions KXan 36 Daily News

Date: March 26, 2023 Time: 14:25:31

The department pointed out that the increase in rates for companies affected those of them that are connected to the distribution networks, the so-called cross subsidy. Consumers connected to the main “crossroad” networks do not pay by population.

Earlier, the Kommersant newspaper wrote that this year in 21 regions of Russia at once, network tariffs for enterprises increased by 10-20%, exceeding the maximum all-Russian indexing level.

Regarding the cost of electricity for industrial consumers, the Ministry of Energy pointed out that the participation of the “grid” in the tariff structure is around 50% for consumers connected to the distribution networks. Therefore, the contribution to the total variation of the final price for said consumers will be half of their indexation.

The decisions of the regional authorities on network tariffs are related, first of all, to the need to ensure high-quality and reliable power supply to consumers through the implementation of equipment repair programs with an increase in the cost of raw materials and materials, electrical and metal products, which were not previously reflected in tariff decisions, the department said.

Energy companies need to implement investment programs and infrastructure projects, it is necessary to make up for the accumulated shortfall in revenue associated, among other things, with the implementation of consumers’ preferential technological connection.

In addition, the need to change rates is associated with the low initial rate base, which has not been indexed for a long time, during the last 5 years network rates have been indexed according to the inflation principle -1, the Ministry of Specified power.

The ministry also noted that in each case it is necessary to take into account the specifics of a particular region and take into account the long-term nature of the decisions made: tariffs will not be indexed in the next year and a half, next the Rate indexing is scheduled for mid-2024.

Hansen Taylor
Hansen Taylor
Hansen Taylor is a full-time editor for ePrimefeed covering sports and movie news.

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