The Russian government approved plans to increase tariffs for electricity for the population from July 2021 by 5%, for gas from July 2021 by 3% and for passenger rail transportation from January 2021 by 3.7%. The corresponding forecasts for tariff indexation are contained in the macro forecast for 2021-2023 published by the Ministry of Economic Development on Saturday, which was approved by the government at a meeting on September 16.
According to the document approved by the government, the growth of regulated tariffs of grid organizations for industry in the period 2021-2023. will amount to 3.0% annually (electricity tariffs are traditionally indexed from July 1).
“In order to reduce the volume of cross-subsidizing in the electric grid complex, the indexation of tariffs for the transmission of electricity to the population on average in the Russian Federation will remain at the level of 5.0% annually. Regulated tariffs for electricity for the population will grow at the same rate (that is, by 5% in year in 2021-2023 – IF) “, – the Ministry of Economic Development explains the need for indexation of electricity tariffs for the population at a faster rate than for industry.
“The dynamics of unregulated prices for end consumers, except for the population, in the retail market in 2020 will average 5.6%, in the period 2021-2023 it will not exceed the parameters of target inflation set in the scenario conditions and will average from 2, 9% to 3.5% “, – says the published macro forecast.
Gas prices for both industry and the population are planned to be indexed by 3% per year in 2021-2023 (indexation also from July 1). Indexation of tariffs for gas transportation through distribution networks is set at the level of 3.7% in 2021 (also from July 1) and by 4.0% per year in 2022-2023.
The forecast notes that, on average, the size of indexation (from July 1) of the total payment of citizens for utilities in 2021-2023 will be 4.0% per year.
“The growth of tariffs for heat supply, water supply and sanitation services, as well as the limiting indices of changes in the payment of citizens for utilities in 2021-2023, will remain at the level provided for by the forecast of social and economic development of the Russian Federation adopted in September 2019 for the period up to 2024 with a focus on the inflation rate “, – noted in the Ministry of Economic Development.
The indexation of rail transportation (they are indexed from January 1) of both goods and passengers from January 1, 2021, according to the approved macro forecast, will be 3.6%, from January 1, 2022 3.6%, from January 1, 2022 3.8 %.
“The indexation of tariffs for long-distance passenger transportation in the regulated segment (transportation in reserved seat and shared wagons) will correspond to the rate of change in freight transportation tariffs due to the fact that the main cost component for passenger carriers is the payment for the use of the railway transport infrastructure, which is indexed in accordance with the parameters of the growth of tariffs for freight transportation, “the macro forecast says.