10:42 15.01.2018

Legal base for transfer of power, water supply companies to RAB tariffs takes effect Jan 11-12

Legal base for transfer of power, water supply companies to RAB tariffs takes effect Jan 11-12

 The legislative base required for the transfer of regional electricity supply companies and water supply companies to RAB regulation took effect on January 11 and January 12, 2018.

Resolutions of the National Commission for Energy, Housing and Utilities Services Regulation (NCER) required for this transfer (Nos. 972 and 981 dated July 27, 2017) were published in the Uriadovy Kurier newspaper on January 10 and resolution No. 1132 dated September 14, 2017 was published on January 11, 2018.

Resolution No. 972 sets the regulatory requirement for revenue both for the oil and new base of assets of regional electricity supply companies at 12.5%.

Earlier the commission several times changed its position regarding the requirement for revenue. In July 2013, the commission set the rate for the oil base of assets at 1-5% and for the new base – 14.79%. In November 2013, the regulator changed the rate range for the oil base for 0-5%, leaving it the same for the new base. In October 2015, the commission changed the rate for the old base of assets to 5% and left it the same for the new base.

The issue of transferring concrete companies to RAB regulation will be considered separately, after they hold open discussions.

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