<a href="https://ultramining.com/news/en/russia-s-energy-ministry-charges-forward-to-legalize-crypto-mining/" rel="noopener noreferrer nofollow">Russia</a> is on the brink of a major reform in its <a href="https://ultramining.com/news/en/crypto-mining-with-flare-gas-a-green-solution-or-environmental-setback/" rel="noopener noreferrer nofollow">electricity</a> tariff system, aiming to motivate regions to shift to consumption-based tariffs for households. The government is set to impose this change by 2024, tying increased business payments to the adoption of new tariffs. This move seeks to alleviate the financial load on businesses, which have long subsidized artificially low household rates, according to <a href="https://www.kommersant.ru/doc/6312459" rel="noopener noreferrer nofollow">kommersant</a>.
Regions will face a choice: adopt the new consumption-linked tariffs or subsidize the population's tariffs from their regional budgets. Consequently, almost all regions are likely to transition to the new system as they currently exceed the subsidy ceiling. The Federal Antimonopoly Service (FAS) has developed a formula to control the subsidy level, tying it to inflation and the rise in energy consumption, which they will enforce from January 2024.&nbsp;
The Ministry of Energy supports these proposals, stating that the reform will allow better control over cross-subsidization growth. However, experts express skepticism, suggesting regions might merely comply in form but not in substance, avoiding significant tariff hikes for households. The Market Council echoes this sentiment, highlighting the reform's potential to solve the persistent problem of cross-subsidization.&nbsp;

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Russia Plans Electricity Tariff Reform to Reduce Cross-subsidies

Ultramining_Eng

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