Ildar Khalikov: «The cancellation of cross-subsidization will be as soft as possible»

The Government of the Republic of Tatarstan include measures to support the population of RT in order to facilitate the transition to pay for heat power, without cross-subsidization. This was announced today by the RT Prime Minister Ildar Khalikov at a special briefing at the RT House of the Government.

Prime-Minister said that the decision on the introduction of cross-subsidization of tariffs for heat power was made back in the 80's of last century.

However the Federal Law "On Heat Supply" does not allow further use of cross-subsidization. "It does not allow to do it since January 1, 2011, and from that date all the other regions of the Russian Federation have moved to the scheme without cross-subsidization" – RT Prime Minister. Thus, from September 1, 2012 tariffs for heat will be generated on the basis of its actual value. The tariff for heat produced in cogeneration mode, will cost about 1,271 rubles per Gcal.

Ildar Khalikov stressed that the decision to cancel the cross-subsidization applies only to Kazan, Naberezhnye Chelny, Nizhnekamsk, Zainsk, Uruss and Afanasovsk Krasnoklyuchinsk settlements and Nizhnekamsk region - those people who use the thermal energy produced in cogeneration mode. Decision does not affect to the houses in Kazan and other towns of RT, where people receive the heat from boilers.

Ildar Khalikov also stressed that the leadership of the republic has come close to finding the most painless way to cancel the cross-subsidization.

In 3 years the RT Government will provide subsidies to compensate the sharp increase in tariffs for heat power for low-income population. According to the head of RT Government, this year's budget of Tatarstan will provide the necessary funds for grants. Total subsidies on from the national budget for 3 years will amount to 6 billion rubles.

Ildar Khalikov also said that at the same time generating stations in Tatarstan is and will make a future work to reduce the cost of thermal energy by improving the efficiency of generation and reduce losses.