The first step towards digitization in the regulation of rates is putting the information flows in order

19 september 2018

"Today it is important for us to understand where the boundary of automation lies from the point of view of regulated organizations and regulating bodies, as well as what risks and constraints exist in the digitization of the regulation of rates for companies," said Elena Kovaleva, Head of the Department for Competition Policy of the Analytical Center, as she opened an expert discussion on the digitization of the regulation of rates.

Olga Gurina, Head of the Methodological Support for Planning and Pricing at AO Mosvodokanal, talked about the prospects of digitization of regulatory accounting in relation to the requirements of financial accounting. "There are certain contradictions here. For example, regulators demand that we fill out rate calculation forms that contain formulas which contradict the accounting policy of the regulated organization," the specialist said. Time is also wasted as a result of the requirement that copies of original documents be provided such as: VAT invoices, services rendered certificates, Ms Gurina believes.

"All utilities are ready to submit rate setting applications and substantiation documents to the regulators in electronic form, the problem is that there are currently too many different report forms to contend with," believes Alexander Sannikov, Deputy CEO for Development at OOO Platforma. The risks and constraints in the digitization of rate regulation, cited by the expert include the following: lack of standard industry wide regulations, a large amount of data that utilities are supposed to submit to regulators, limited financing and problems with the digitization of related organizations such as: Housing utility companies and the ministry for energy.

Parviz Abdushukurov, PAO Fortum Vice President, believes the first step towards digital energy is putting the information flows in order.  "We need to standardize the national information system forms for rate applications, to bring it into alignment with the requirements of the existing rate regulation laws so that all regulated organizations can use the same forms. It is equally important to compile a list of digitized parameters that can be read off of devices, production, accounting, statistical and other reports," the expert summed up. Meanwhile, the consumers of this information, including the regional energy commissions, must be able to freely access any data sets in the federal state information system, the specialist believes.