Transformation of tariff regulation of the electric grid complex of the Yaroslavl Region

Abstract

The article examines the consolidation of electric grid company assets to improve their efficiency, reliability, and manageability. To this end, new, more stringent criteria for merging territorial grid organizations (TGOs) in Russia and the Yaroslavl Region are examined. Tariffs for electricity transmission services for grid organizations in the Yaroslavl Region are calculated using a long-term indexation method of required gross revenue. Controllable expenses are calculated using a new benchmark method, limited by the specific controllable expenses per conventional unit of the region’s largest distribution grid organization. The consequences of tariff regulation transformation are assessed. Given that all territorial grid companies in Russia must gradually transition to this tariff regulation methodology (calculating controllable expenses using a comparison method with an analogue, taking into account the benchmark method) from 2026 to 2028, it is important to consider its impact on individual regional TGOs, prepare for the transformation, and assess its implications for consumers and grid companies. This paper examines the specifics of the benchmark method for calculating the controllable costs of the electric grid divisions of Transenergo, a subsidiary of Russian Railways. The study revealed that Transenergo’s specific controllable costs are lower than those of the region’s largest territorial grid operator (TGO) throughout the transition period, specifically, 42% lower for 2026. Controllable costs themselves, calculated using the economically justified costs method, are 3.4% lower than those determined using the benchmark method in 2026.