OREANDA-NEWS. April 07, 2008. The Federal Antimonopoly Service (FAS Russia) made a decision on devising a new edition of the Federal Law "On Natural Monopolies". It was announced by Deputy Head of FAS Russia Anatoly Golomolzin at the Round Table of the 6th All-Russian Energy Forum "Russian Fuel-and-Energy Complex in XXI cent", reported the press-centre of FAS Russia.

According Mr Golomolzin, the proposed legislation is aimed at "reducing the costs of the subjects of natural monopolies, increasing transparency of their operation and creating conditions for competition development".

In particular, the Antimonopoly Service proposes to:

- Clarify the concept of a "subject of a natural monopoly", describing it in accordance with the conceptual structure of the Federal Law "On Protection of Competition"

- Complete substantively the Regulations on the Antimonopoly Supervision of the Subjects of Natural Monopolies

- Update tariff regulation techniques, that is: in addition to the existing technique "costs +" there should be the methods of tariff indexation, return on capital, benchmarking, as well as accounting of the price trends on the connected markets

- Ensure open bidding procedures for procurement of goods, works and services for the needs of natural monopolies, based on the Federal Law "On State and Municipal Procurement of Goods, Works and Services"

- Link tariff decisions to the scope of the offered services, their reliability, quality and efficiency, and monitor continuously such indicators

- Calculate costs and returns separately; ensure compliance with the standards of performance and the standards of information disclosure for the subjects of natural monopolies

- Introduce the procedures for co-ordination and approval of investment programms for the subjects of natural monopolies by the authorities of all levels, as well as for co-ordination and approval of the investment programms for the subjects of natural monopolies in various areas of economic activity

- Introduce open bidding for use (leasehold, concession) of the objects of the infrastructure of natural monopolies

- Develop a system of long-term relationships between owners, users (lessees, concessionaires) and tariff regulators for the period of 10 and more years

- Establish the responsibility of the subjects of natural monopolies to justify the availability (absence) of free capacity

- Establish the procedures for regular financial, technical and technological audit of the subjects of natural monopolies.

According Mr Golomolzin, FAS Russia shall devise the new concept and the first edition of the draft legislation by 1st May 2008.