RUSSIAN FEDERATION: Federal Law No.147 of 195 on Natural Monopolies (2021 Ed.)

Meta Data
Title in national language: 
Федеральный закон от 17.08.1995 №147-ФЗ "О естественных монополиях" (в ред. от 11.06.2021 г.)
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
1995
Effective Start Year: 
2021
Scope: 
National
Document Type: 
Law
Economic Sector: 
Energy, Power, Multi-Sector
Energy Types: 
Oil, Power, Gas, Nuclear
Issued by: 
State Duma - Lower House of the Russian Parliament
Notes: 
No English translation available
Source: 
Regulatory Database 'Consultant Plus' (RU)
File: 
Federal Law No.147 of 195 on Natural Monopolies (2021 Ed.)
Overall Summary: 
The present Law establishes legal frameworks for natural monopolies in the Russian Federation. The policy aims to ensure the mutual advantage and maintain the balance of interests of all market actors, thereby guarantee availability of natural monopoly goods to consumers and enhance efficiency of natural monopoly entities (Art. 1). Art. 2. The policy covers regulation of commodity markets and defines in this respect main market actors: holders of natural monopolies, consumers, federal regulatory bodies, regulatory bodies of constituent entities, and local regulators. The focus is made on the following areas: 1) transportation of oil and petroleum products via trunk pipelines; 2) gas transportation via trunk pipelines; 3) railway transportation; 3) services of transport terminals, ports and airports; 4) electric and postal communication; 5) power transmission; 6) operational dispatch control services in electric power industry; 7) heat supply services; 8) radioactive waste management; etc. (Art. 4). Provisions are made for enforcement procedures and penalties imposed in case of non-compliance.
Pricing
Energy pricing: 
Art. 6 stipulates that regulatory bodies shall carry out activities with respect to tariff setting and shall identify consumers serviced on a mandatory basis. Government of the Russian Federation shall approve the categories of goods (services) provided by natural monopoly entities that are subject to tariff regulation. In this regard, principles of tariff setting shall be determined. ---- In price determination, the regulatory agency shall take into account the following parameters: production cost, taxes, capital expenses and capital investment, and expected profits. ---- Art. 8. In accordance with national anti-monopoly legislation, natural monopoly entities are obliged to ensure non-discriminatory conditions for goods and services regulated by the present Law.
Governance
Energy management principles: 
Art. 7. To implement directive principles envisaged by the present policy, national regulators shall put in place measures to exercise control over natural monopolies. The policy aims to restrain activities resulting in infringement of consumer interests or hindering transition of commodity markets from the state of natural monopoly to the state of competitive market. In this respect, particular attention is given to: 1) agreements leading to acquisition of property rights to fixed assets or the right to use fixed assets that are not intended for production (sale) of goods; 2) investments of a natural monopoly entity in production (sale) of goods not regulated by the present Federal Law; 3) sale, lease or any other transaction leading to acquisition of property rights by a business entity; 4) tariff-setting for commodity goods regulated under the present Law; 5) compliance with information disclosure standards.
Energy institutional structures: 
Art. 5. Federal regulatory agencies shall be established - in accordance with the legal procedure for federal executive bodies - to regulate and oversee activities of natural monopoly entities. Federal regulators are entitled to establish local bodies and vest them with broad powers within the scope of their mandate.