The digitization of rate regulation should reduce the cost of interaction between business and state

21 january 2019

The digitization of rate regulation is supposed to reduce the cost of interactions between business and the state in future. That's the forecast the Analytical Center experts make in their new bulletin on the development of competition "Digitization of Rate Regulation: Water Supply and Sewage Removal as an Example."

At the federal and regional levels, a number of projects have already been implemented to automate rate regulation and digitize public authorities and regulated organizations, says the bulletin. However, the authors of the bulletin believe that the digitization of rate regulation has an even greater potential.

The experts note that digitizing all interactions between the regulator and a monitored organization can drastically reduce the cost of the preparation and processing of relevant information while also helping make the entire process far more transparent. This task is in line with the Digital Economy national program that envisions the creation of an entire ecosystem of effective interaction between the state and business.

The authors of the bulletin also note that there are a number of industry problems that need to be addressed for these goals to be achieved; these problems include: providing same reports by an organization to the supervising authorities, lack of a clear list of information that organizations must provide as part of the rate setting process, uncertainty of interpretation of the rate setting methodologies.

For more see the bulletin "Digitization of Rate Regulation: Water Supply and Sewage Removal as an Example."

For other bulletins on the development of competition see Publications.