Indexation of tariffs for electricity transmission across distribution networks in the Russian Federation in 2024 may amount to 9.1%, for UNEG networks – 6.3%

Tariffs for the transmission of electrical energy for all categories of consumers except the population are planned to increase from July 1, 2024 by 9.1%, from July 1, 2025 by 6% and from July 1, 2026 by 5%, follows from the socio-economic forecast published by the Ministry of Economic Development on Friday development of Russia for 2024 and for the planning period of 2025 and 2026.

As stated in the document, “in order to avoid increasing the volume of cross-subsidies in the electrical grid complex, the amount of indexation of tariffs for the transmission of electrical energy to the population” will be similar.

Indexation of regulated electricity tariffs for the population will be 8.9% in 2024, 6% in 2025, 5% in 2026.

“These indexation rates do not take into account individual decisions of the Government of the Russian Federation taken to eliminate local regulatory imbalances in individual regions, and decisions of the FAS of Russia on approving statements of regional regulatory authorities on the establishment of tariffs different from the maximum levels established by the FAS of Russia,” it is noted in forecast.

Indexation of tariffs for electricity transmission services through main power transmission lines (MPTL) is planned to be carried out “taking into account the gradual increase in the capacity of consumers connected to MPTL, taken into account when calculating tariffs, to the actual value (2.5% in 2024 and 2025).” Moreover, without taking into account this premium for the gradual increase in the capacity of consumers connected to the MPTL for the period up to 2025 inclusive, in the amount of 2.5% annually, indexation of these tariffs in addition to their increase by 6.3% from May 1, 2023 from 1 July 2024 may be 8%, from July 1, 2025 - 6%, from July 1, 2026 - 5%.

The total payment of citizens for utilities may increase from July 1, 2024 by 9.8%, from July 1, 2025 - by 5.7%, from July 1, 2026 - by 4%.

As explained in the forecast, when adjusting the indexation parameters of citizens' payments for utility services, the following factors influencing the costs of resource supply organizations in the areas of heat, water supply and sanitation, the share of expenses for electricity and gas supply in the total payment for utility services are taken into account:

- additional indexation of gas prices for all consumers, including the population, in 2024 - by 4.2%, in 2025 - by 1.2%;

- additional indexation of electricity transmission tariffs in 2024 – by 3.1%, in 2025 – by 1%;

- additional indexation of electricity tariffs for the population in 2024 - by 2.9%, in 2025 - by 1%.

As provided by law, for certain municipalities the indexation amount may exceed the established index for the constituent entity of the Russian Federation by more than the maximum deviation based on proposals from senior officials of the constituent entities of the Russian Federation, taking into account the implementation of investment programs, compliance with long-term tariffs within the framework of concession agreements, and the implementation of integrated development programs for territories , making decisions on classifying individual municipalities as heat supply price zones and transitioning to a maximum pricing model for heat energy.

“The Ministry of Energy of the Russian Federation believes that the main reason for tariff indexation is the increase in costs of producers and suppliers associated with a general increase in prices in the economy (inflationary component), as well as in a specific area (for example, for energy resources for electricity production). Indexation is aimed at compensating for the increasing costs of manufacturers and suppliers, including those associated with measures to modernize and increase the reliability of power systems,” the ministry said in a commentary.

According to the Ministry of Energy, indexation of electricity tariffs will ensure further reliable and uninterrupted power supply to all consumer groups and save costs, including equipment repairs.