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To develop a plan for the switch from cost-plus rate setting to RAB methodology for power and gas co…

To develop a plan for the switch from cost-plus rate setting to RAB methodology for power and gas companies and implement all the necessary measures to ensure incentive-based rate setting in centralized heating, water and sewage services.

Based on the report:

“NATURAL MONOPOLIES vs. COMPETITIVE BUSINESS: how to improve relations” January 2016

State:

National Energy and Utilities Regulatory Commission, Ministry of Finance,

Status:

In process

— comments: During 2015-2017, the NEURC has developed a regulatory framework for implementation of incentive management in the fields of energy and utilities, namely power transmission, power distribution field, heat- water supply and sewage. Thus, the Council is currently attempting to identify areas in which the concept of switching from "cost plus" rate setting methodology to RAB has not been yet developed and needs further regulatory settlement.

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Next recommendation: To draft amendments to the respective asset valuation methodology to improve the base for assessing ...