Cross subsidization in Russian power falls 25% since 2014

MOSCOW, Feb 17 (PRIME) -- Cross subsidization in Russia’s power sector has contracted by 25% in relative terms as compared with the 2014, Dmitry Vasilyev, head of the Federal Antimonopoly Service’s department for regulation of the power sector, said on Monday during roundtable talks in the State Duma, the parliament’s lower house.

“We say that cross subsidization rises. But we see that cross subsidization has stabilized in the power industry. If we convert it into relative figures, into real figures, then it has contracted by 25% lately as compared with 2014. I mean that we don’t see an increase of cross subsidization in the power grid sector, it has stabilized,” he said.

Cross subsidization in the power industry means that one group of consumers pays for lower tariffs for other groups of consumers. There are several types of cross subsidization in Russia, including when industrial consumers pay more so that tariffs for households are lower.

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