Freezing the tariffs of natural monopolies is necessary to stimulate economic growth by reducing costs and thus increasing the competitiveness of domestic products.

24 october 2013 | Nezavisimaya Gazeta

Sergey Novikov, Head of the Federal Tariff Service, talked about the medium-term plans of the department. In particular, he talked about the freezing of tariffs on goods and services of natural monopolies in 2014 for industrial customers. The official did not rule out the fact that a decision to extend the freezing of tariffs will be made based on each specific situation.

Tatyana Radchenko
Tatyana Radchenko
Deputy Head

Tatiana Radchenko, Head of the Directorate for Competition Policy of the Analytical Center, in comments to Nezavisimaya Gazeta, said that the freezing of tariffs is an extremely unpopular measure for the natural monopolies. However, according to the expert, this action is necessary to stimulate economic growth by reducing costs and thus increasing the competitiveness of domestic products on both domestic and foreign markets. According to her, this measure is justified, but at the same time, it is a short-term step. “It does not solve the systemic problems of the economy. In the future, the rates will be increased because of inflation in 2014,” believes Ms. Radchenko.