Russian FAS Probes Utility Tariff Hikes in Several Regions

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The Federal Antimonopoly Service (FAS) has initiated checks on utility tariffs to assess their economic validity. The inspection will cover key areas of public utilities: electricity supply, heat supply, water supply, wastewater disposal, and gas supply.

FAS reminded that since January 1, 2026, the basic VAT rate was increased by 2 percentage points. This change was expected to affect the cost of utilities, but only partially — the increase in payments related specifically to the tax adjustment should not exceed 1.7%. This refers exclusively to the tax component and not to a review of regulated tariffs, which are approved separately through established procedures.

The reason for the checks was media reports and citizen complaints pointing to tariff increases above the specified level. In response, the central office of FAS and its regional branches have launched oversight and control measures.

Starting in February, inspections of regional tariff regulation bodies have already begun in Tyumen Oblast, Khanty-Mansi Autonomous Okrug (Khanty-Mansiysk), and Yamalo-Nenets Autonomous Okrug. Experts are analyzing whether the costs included in the tariff structure are justified. The service plans similar inspections in Sakhalin Oblast, Pskov Oblast, and the Udmurt Republic.

Additionally, throughout the year, FAS regional offices will conduct selective checks of tariff decisions in the areas of heat supply, water supply, and wastewater disposal. The service emphasizes that the goal of the inspections is to exclude unjustified costs from tariffs and protect consumer interests.