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Will energy tariffs be reduced for "extreme" regions of the Far East?

  • Published in Economy
energy tariffs

The senators of the Far East came up with a suggestion for the Federation Council to begin work on reducing the cost of electricity for residents of Chukotka, Magadan Oblast, Yakutia and Kamchatka at the expense of the federal budget, reports

"As an initial step, it is considered expedient to subsidize the energy tariff for residents of the Far Eastern Federal District at the expense of the federal budget,” said Anatoly Shirokov, member of the Council of the Federation Committee on the Federal Structure, Regional Policies, Local Self-Governance and Affairs of the North.

According to preliminary calculations, a reduction in the energy tariff to 4 rubles per kilowatt-hour for residents of Chukotka, Magadan Oblast, the Republic of Sakha (Yakutia), and Kamchatka Krai will require no more than 5 billion rubles a year, the senator added.

Today, depending on the region, the cost of electricity in the Far East may exceed the average Russian almost threefold. For example, in Chukotka, the cost of a kilowatt goes up to 10.5 rubles.

In the summer of 2017, the tariffs for electricity were reduced for industrial consumers to the average Russian level in five entities of the Far Eastern Federal District. These regions included territories with isolated power systems - Chukotka, Kolyma, Yakutia, Kamchatka, and Sakhalin. According to the data of the Ministry for Development of Russian Far East, the enterprises of these regions annually save more than 20 billion rubles. Regional budgets save up to 6 billion rubles, and the savings are channeled to social projects.