Economic Development and Trade Minister German Gref has failed to defend his point and keep equal gas prices for all consumers.
Photo: Grigoriy Sobchenko
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Govt Raises Gas Prices for New Consumers
The Russian government has agreed with Gazprom’s suggestion to increase tariffs for new gas consumers, a move strongly opposed by the Economic Development Ministry. Federal tariff authorities say that if rates are not increased, Gazprom will refuse to supply the necessary amounts of gas to new consumers. Russian energy giant RAO UES, which is launching scores of new power stations, is sure that higher prices will not drive away investors from its projects.
Prime Minister Mikhail Fradkov has signed a decree for long-term gas supply contracts for domestic consumers, introducing higher rates for new consumers from this July, Kommersant reported Tuesday.
Last November, the government endorsed a schedule for a gradual increase in gas prices which aims to make gas sales in the country as lucrative as it is abroad. Domestic gas prices are now about $50 per 1,000 cu. meters whereas the Industry and Energy Ministry would like to see it almost thrice as much, at $125. The Economic Development and Trade Ministry dismissed a proposal of higher tariffs for new consumers as harmful for competition. “The price should be high, but it should be the same for everyone,” said Minister German Gref.
Denis Volkov, in charge of the oil and gas industry pricing at the Federal Tariff Service, says that the proposed regime for new enterprises will include the bottom price, which amounts to the current tariff, and the top price, which is 60 percent higher. Gazprom and industrial enterprises are free to negotiate the price within this limit.
The Economic Development Ministry declined to comment, saying the decision had already been made. Tariff officials say they are convinced that higher tariffs will not scare off investors from the market.
A spokesperson for RAO UES of Russia confirmed that the electricity company is “not happy” about a hike in gas prices, but its investment program will not suffer in any case.
www.kommersant.com
All the Article in Russian as of May 30, 2007
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