Ukrzaliznytsia's tariffs grow by 14.2%, company opens investment account for accumulating funds
JSC Ukrzaliznytsia from March 30 indexed the tariffs for freight transportation by rail y 14.2%. The information was published in the Uriadovy Kurier government's newspaper on Saturday.
Earlier it was planned that the tariffs would be indexed on April 1, 2019.
"The indexation of tariffs for freight transportation from March 30 is the first step towards the introduction of a permanent model of automatic indexation of tariffs by the industrial price index. A new concept of tariff setting for rail transport should be developed by Ukrzaliznytsia together with market players by July 1, 2019," Director for Economics and Finance at Ukrzaliznytsia Andriy Riazantsev said, commenting on the published information.
According to Riazantsev, the tariff for freight transportation has been indexed to the level of the industrial price index for the first time in history, which is fair both for Ukrzaliznytsia and shippers.
Ukrzaliznytsia has already opened a special investment account where funds from indexation of the tariffs will be accumulated, which will allow the company to more effectively cooperate with the market in the use of the financial resources received," the company's financial director said.
The next step in improving the tariff policy in the company is the introduction of automatic indexation of tariffs for freight.
"Today there is no question about the feasibility of introducing automatic indexation of tariffs. It only remains to decide how soon it will be done, since the general tariff setting system, as discussed at the meeting in the State Regulatory Service of Ukraine, will be developed by Ukrzaliznytsia together with market players and government bodies before July 1, 2019 and must eliminate all the imperfections of the existing system," Riazantsev said.
He also added that, for its part, Ukrzaliznytsia has already offered regular quarterly indexation on actual changes in the industrial price index to market players.
Also, according to him, Ukrzaliznytsia proposes to introduce the investment component of the tariff and now the work on the formula of this component is underway.