PRESS: Government resumes discussion of power cross-subsidy ban

MOSCOW, Jul 26 (PRIME) -- The Russian government will present proposals to eliminate cross-subsidies in the electric power sector until August 15, business daily Kommersant reported on Thursday, citing documents of the Energy Ministry.

The tariffs for households are lower than for companies but large electric power consumers avoid distributive grids and connect directly to the Federal Grid Company of Unified Energy Systems (FGC UES). They also build their own power plants to cut costs, which is why small and medium consumers overpay.

The measures will not affect the households but will distribute corporate payments evenly.

Cross-subsidies amounted to 220 billion rubles in 2012, 368 billion rubles in 2017 and are forecast at 417 billion rubles in 2022. The household tariffs will have to rise 13.9%, which is impossible in the current conditions.

(63.0836 rubles – U.S. $1)

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