What determines electricity prices?
Electricity enters homes through three stages:
- Electricity producers. These are companies that own power plants. Power plants produce energy in various ways: there are nuclear power plants, thermal power plants, hydroelectric power plants, wind generators, solar panels, etc. Depending on the complexity of the equipment and the cost of the energy production work performed, the price per kilowatt set by the manufacturer varies.
- Suppliers. Suppliers are network companies that supply electricity to homes. They are responsible for the quality and maintenance of energy networks.
- Sales organizations. Sales organizations sell electricity to consumers.
Thus, the tariff price consists of three components: the price set by the manufacturer, the cost of energy supply and the premium set by the sales company.
Let's take a closer look at each of the price formation points. Until 2011, the energy producer was subject to state requirements, according to which all energy produced is conditionally divided into two halves. Previously, half of the electricity was sold at wholesale prices, and the other half at market prices. After 2011, the entire volume of energy produced began to be sold at a market rate in order to cover production losses and allocate funds for the development of the energy industry. Accordingly, prices for electricity at the production stage depend on the market price per kilowatt in the global energy market.
The cost of transmitting energy to the consumer can also be divided into two parts. The Federal Grid Company, subordinate to the state, supplies energy from the manufacturer (power plant) to the city or region. Next, energy delivery to homes and businesses is carried out by private enterprises , of which there may be several in one region.
The Committee on Prices and Tariffs sets a cost limit for each of the enterprises, but the final price is determined by its manager. The price set by each enterprise depends on the quality of the equipment used. Thus, even in the same region, residents may pay different prices for electricity if it is supplied by different joint stock companies.
The sales allowance for electricity is formed from the funds necessary for the operation of sales companies. The tariff for payment for their services is also set by the Committee on Prices and Tariffs of a particular region. The job of sales companies is to organize the delivery of energy from the producer to the consumer: they are the ones who purchase the energy produced at power plants, pay for its transportation, and then sell it to residents and businesses.
Thus, the size of tariffs from region to region consists of these three components. Plus, the cost of electricity differs in the city and in rural areas (as a rule, with distance from the city, the tariff increases due to the length and complexity of servicing networks , however, settlements with the status of villages and hamlets receive a 30% discount on the tariff). In houses with electric stoves and gas installations, the tariff is also different: in houses with gas the tariff is higher.
The increase in electricity tariffs is due to the increase in the cost of equipment from the manufacturer and the cost of fuel. Added to this factor is the wear and tear of the power grid: some energy is lost during delivery, and the supplier needs to maintain the grid for efficient delivery. An important issue is with unscrupulous consumers who steal electricity, for which law-abiding citizens have to pay. This problem is especially widespread in enterprises.
What is an electricity tariff
Electricity prices for consumers are called tariffs. Its volume is measured in kilowatt hours. Tariffs are not the same for different categories of consumers.
Criteria for the formation of tariff rates:
- Location of the settlement. In rural areas, electricity prices are almost a third lower than in the city. Reduced rates apply only to residents of villages and villages. Summer residents and cottage owners do not belong to this category. The rural tariff does not apply in urban settlements. The benefit for rural residents is explained by the fact that their living conditions are less comfortable and they consume less electricity than city dwellers.
- The tariff is reduced for apartments where there are electric stoves and the heating system is connected to the power supply. Residents of houses without natural gas are forced to spend more electricity. This means that in order to put them on an equal footing with owners of gas stoves, the state partially reimburses the inevitable high costs. But even with reduced tariffs, electric heating and electric stoves will cost more than the gas equivalent.
Types of tariffs:
- single-rate – a single tariff that does not depend on the time of day,
- two-rate - at different times of the day the price per kilowatt is not the same. At night, when electricity consumption decreases, its price is lower, and during daylight hours the tariff rate increases. This plan is called "night - day"
- There is also a three-zone tariff, when the daily rate is divided into “peak” and half-peak.
Most consumers are billed at a single tariff rate. But those who know how to save money install dual-zone day-night meters. The introduction of such a tariff is intended to relieve daily electricity consumption. After all, owners of a two-tariff meter can use cheap electricity at night, including energy-intensive electrical appliances at night. If you iron your clothes, turn on the washing machine, dishwasher, bread machine or oven after 11 pm, you will be able to save a lot. In a short time, installing an electronic two-tariff meter will pay for itself.
Another inconvenient nuance is that when switching to summer - winter time, the counter must be reprogrammed.
There are preferential social tariffs that provide for the payment of a certain number of kilowatts for each resident at a reduced rate. The volume of resource exceeding this norm is paid at a rate 30% higher than the social rate.
Gardening partnerships and charitable organizations also have discounts on the cost of light.
Electricity tariffs in the regions
The Russian electricity market is divided into two parts: wholesale and retail. The wholesale market is designed for the sale of power and electricity to large suppliers, such as distribution companies, exporters, and enterprises. The retail market consists of guaranteeing suppliers and sales companies that sell energy to end consumers, i.e. citizens and institutions.
Most of the country is influenced by the wholesale market. In turn, this market is conditionally divided into two territorial zones, which do not depend on each other in terms of prices for the sale of electricity. One part of the zone covers the European part of Russia and the Ural region, and the other – Siberia. In these areas, prices can differ significantly not only from each other, but also within the region itself, and their formation occurs independently.
Special zones (so-called “non-price”) are the Far East, Kaliningrad, Arkhangelsk region and the Komi Republic . These regions are territorially isolated from the unified energy system of Russia, so prices there are organized according to the principle of monopoly: market competition in these areas is impossible for technological reasons.
Electricity consumption varies across regions. This is due to the length of daylight hours, population density, technical equipment and a number of other factors. It should be borne in mind that a consumer, wanting to save money and cutting the amount of energy consumed, causes a reverse reaction: the obligations of sales companies to pay for power remain unchanged, and a decrease in electricity consumption provokes an increase in the tariff, not a reduction (although there are exceptions to this rule).
Economic justification for tariffs
In recent years, we have increasingly seen news that electricity prices have increased. At the same time, new, increased tariffs are called “economically justified.” Does this economic rationale really exist, and by what mechanism is it formed?
According to the legislation of the Russian Federation, electricity tariffs are formed in each subject of the Russian Federation using the criterion of economic feasibility. Tariffs are set by a commission that conducts an independent examination of data on the prices of housing and communal services. The final cost of the tariff consists of the cost of the kilowatt produced and the profit of its manufacturer.
The cost per kilowatt includes material costs (equipment and consumables), payment of employees, current and major repairs, depreciation, etc. When calculating the final tariff, the manufacturer's profit share is up to 12%. The task of the expert organization is to analyze the documentation regulating the cost of electricity production, compare it with the income of citizens in the region and set the optimal tariff for paying for electricity.
Many citizens believe that the increase in electricity tariffs is due to the desire of officials to enrich themselves at the expense of consumers. This is partly true. The current state of affairs in the energy sector demonstrates a huge number of intermediaries on the way from the manufacturer to the buyer, and each of the intermediaries has the right to set its own markup within the limits established by laws. Considering the liberalization of the market and the appetites of some entrepreneurs, such markups in total can be painful for a citizen’s pocket. And given the inaccessibility of some regions and the established monopoly on energy supply in them, prices for supplier services may be deliberately inflated.
Two-part tariff
The two-rate tariff consists of 2 parts - the basic rate of payment per unit of consumed power and an additional surcharge for each hour. The introduction of this tariff helps to more evenly distribute the load on the power grid during the day and at night.
In fact, some consumers save at the expense of others. Rates for two-tariff use are calculated based on the cost of energy. They are relevant not only for the population. The two-rate calculation principle is also valid for industrial facilities. Only prices differ significantly for domestic and industrial power supply.
An industrial enterprise pays for energy consumption in the amount of 17 to 33 rubles per 1 kW/hour.
It is worth evaluating all the advantages of installing an electronic meter “day - night”.
Nuances of installing a multi-tariff meter:
- Are powerful electrical appliances often used (kettles, microwave ovens, washing machines and dishwashers),
- is the difference between day and night rates significant?
- how much will you have to pay to set the clock if you change the clock mode,
- how long is the grace period in a day?
- whether the consumer will be able to take advantage of the preferential time (for example, if night shifts are frequent, then the majority of electrical appliances will be turned on on the day when there are no benefits).
Before changing your tariff plan and installing a two-zone meter, you need to weigh all the advantages, find out from the supplier organization about the price of the resource at each time of the day, about upcoming changes in payment, and so on. If there is a real benefit, you can switch to a two-tariff plan.
How much do they pay for electricity in Europe?
Electricity prices in the European Union are among the highest in the world. Over the past 10 years, they have grown even more, increasing the difference between the closest trading partners (Russia and China). On average, European residents pay 2-3 times more for electricity than Russian consumers.
High prices in Europe are associated with the high cost of energy production. Oil and gas products, which form the basis of the bulk of electricity produced, are imported into the EU countries via transit routes, acquiring a high cost.
In Russia, in the first half of 2020, the average cost of a kilowatt for the population was 3.1 rubles. For example, in France you have to pay 13 rubles for the same amount of energy, in Italy – 15, and in Denmark – almost 20 rubles. Among countries with developed economies, Russia ranks only third in terms of the cost of electricity ; only Ukraine and Kazakhstan pay less - 2 rubles each. per kilowatt.
But one should not be deceived by the cheapness of a unit of energy. It is much more important to take into account the factor of its accessibility in relation to the income of the population. Here everything is more complicated, since both the value of the national currency and the average wage in the country are taken into account. In this regard , the most affordable electricity in Norway is at a cost of 10.5 rubles per kilowatt. Norwegians can afford 22,563 kilowatts per month. In Russia, despite the apparent cheapness, this figure is only 11,114. The most “unaffordable” price in relation to electricity income in Moldova is 2,258 kilowatts per month at a cost of 5.9 rubles. for a unit.
High energy prices in Scandinavian and European countries are also due to the fact that these states are fighting for a good environmental situation on their territory and on the entire planet. In this regard, it is necessary to abandon “dirty” methods of energy production - for example, from nuclear reactors, which produce the cheapest kilowatts. The emphasis is on more complex, but non-toxic power plants - wind turbines, solar panels, etc.
Thus, there is no point in comparing electricity tariffs in Russia and Europe if the level of income of the population is not taken into account. We are often reassured by the fact that our electricity is one of the cheapest in the world, but this does not make much sense for the population if they have a low income and the national currency depreciates.
About mini-hotels and payment for electricity
The use of residential premises as hotel rooms has acquired enormous proportions in the Krasnodar Territory. In almost every residential building located in the cities of the Black Sea and Azov coasts, as well as in large cities of the region, there are “mini-hotels”, “guest houses”, “hotel apartments”. The legislation of the Russian Federation clearly regulates the procedure for citizens to carry out this type of business activity and pay for utilities. Answers to the most frequently asked questions on this topic have been prepared, which are posted in the section “Consumers” - “Citizens-consumers” - “Information for citizens-consumers”:
The use of residential premises as hotel rooms has acquired enormous proportions in the Krasnodar Territory. In almost every residential building located in the cities of the Black Sea and Azov coasts, as well as in large cities of the region, there are “mini-hotels”, “guest houses”, “hotel apartments”.
JSC NESK has prepared answers to the most frequently asked questions on this topic.
Is it legal to use residential premises to carry out business activities in it?
As a general rule, the owner has the right, at his own discretion, to take any actions in relation to his property that do not contradict the law and other legal acts and do not violate the rights and legally protected interests of other persons (Clause 2 of Article 209 of the Civil Code of the Russian Federation). At the same time, the special social significance of the housing stock determines some limits on the exercise of ownership of residential premises.
The Housing Code of the Russian Federation allows citizens living in residential premises legally (the owner, members of his family, tenant, etc.) to use this premises for professional activities or individual entrepreneurial activities, without transferring it to non-residential premises.
According to paragraph 2 of Article 17 of the Housing Code of the Russian Federation, the owner or other citizen can only combine living in a residential building and carrying out any professional (entrepreneurial) activity: lawyer or notary practice, tutoring, etc.
Is it legal to use residential premises for mini-hotels?
In accordance with paragraph 3 of Art. 288 of the Civil Code of the Russian Federation, the owner owns, uses and disposes of the residential premises belonging to him in accordance with its purpose, i.e. for permanent residence.
The placement by the owner of enterprises, institutions, organizations in the residential premises belonging to him is allowed only after the transfer of such premises to non-residential (Clause 3 of Article 288 of the Civil Code of the Russian Federation), which is carried out in the manner determined by housing legislation.
The use by a citizen-owner of an apartment (house) belonging to him as a “hotel room”, i.e. for the resettlement of citizens who are strangers to him, contradicts both paragraph 3 of Art. 288 of the Civil Code of the Russian Federation, and paragraph 2 of Art. 17 of the Housing Code of the Russian Federation.
At what tariff should the owner of a mini-hotel pay for consumed electricity?
The “Rules for the provision of utility services to citizens”, approved by Decree of the Government of the Russian Federation dated May 23, 2006 No. 307, defines the concept of “consumer of utility services - a citizen who uses utility services for personal, family, household and other needs not related to business activities” . The tariff for the population approved by the order of the Regional Energy Commission - DCT of the Krasnodar Territory is intended for the use of electricity for public utilities and household needs of citizens, and is not intended for making a profit. Citizens who receive additional income through the use of residential premises as a hotel do not have the right to pay for electricity at the tariff for the population. In accordance with the “Methodological guidelines for calculating regulated tariffs and prices for electric (thermal) energy in the retail (consumer) market”, approved by Order of the Federal Tariff Service of the Russian Federation dated 06.08.2004 No. 20 - e/2, tariff groups of electricity consumers are determined.
Individuals carrying out business activities in separate residential premises belong to the group “other consumers”. Citizens-consumers engaged in business activities in residential buildings they own must enter into a new energy supply contract or an additional agreement for the summer period.
At the same time, a meter for metering electricity consumed for the purposes of business activities must be installed in the residential premises.
How much do they pay for electricity in the CIS countries?
Among the CIS countries, Russia has one of the highest electricity tariffs. Electricity is sold more expensively than in Russia only in Moldova and Armenia. The lowest energy tariffs are in Kyrgyzstan and Tajikistan.
The low cost of tariffs in countries with developing economies is associated with low wages and the difficult economic situation of the population. The state strictly regulates electricity prices, because they are an economically important component of citizens' lives. Increasing tariffs according to market conditions will lead to more citizens approaching the poverty line.
Also, the low price of electricity is associated with the low value of the national currency. It should be noted that among the CIS countries Russia occupies a leading position in terms of wages. Thus, in the countries of the former Soviet Union, electricity prices are logically distributed - the most expensive kilowatt is sold in the richest countries.
Armenia and Ukraine occupy a special position. Although electricity tariffs are still low, in recent years, due to political events, their costs have risen sharply. Further price dynamics remain questionable, because In Armenia, such a decision by the authorities has already caused mass protests.
In general, the CIS countries benefit from the Soviet legacy in the field of energy: developed centralized energy networks, various power plants, efficient production and supply of electricity. Therefore, when comparing Russian prices per kilowatt with world prices, it is more relevant to focus on these countries, and not on Western and European ones.
Electricity tariffs in the Republic of Bashkortostan for 2020 for individuals
The State Tariff Committee of the Republic of Belarus, by Resolution No. 487 of November 29, 2020 “On setting prices (tariffs) for electrical energy for the population and equivalent categories of consumers in the Republic of Bashkortostan for 2020,” approved electricity tariffs for the population and equivalent categories of consumers for 2020.
According to the Resolution of the State Tariff Committee of the Republic of Belarus No. 487 dated November 29, 2020, the following tariffs are established for 2020:
1. Electricity tariffs for the population living in urban settlements in houses not equipped with stationary electric stoves, including VAT:
№ | Indicator of consumer group with tariff breakdown by rates and differentiation by day zones | 1st half of 2020 | 2nd half of 2020 |
price, rub. for 1 kWh | |||
1 | One-part tariff | 3,17 | 3,33 |
2 | Two-part tariff | ||
2.1 | Day zone | 3,65 | 3,83 |
2.2 | Night zone | 2,54 | 2,66 |
3 | Three-part tariff | ||
3.1 | Peak zone | 4,12 | 4,33 |
3.2 | Half-peak zone | 3,17 | 3,33 |
3.3 | Night zone | 2,54 | 2,66 |
2. Electricity tariffs for the population living in urban settlements in houses equipped in the prescribed manner with stationary electric stoves and (or) electric heating installations and for the rural population, including VAT
* A coefficient of 0.7 was applied in accordance with paragraph 3 of the Resolution of the State Committee of the Republic on Tariffs No. 487 of November 29, 2020.
№ | Indicator of consumer group with tariff breakdown by rates and differentiation by day zones | 1st half of 2020 | 2nd half of 2020 |
price, rub. for 1 kWh | |||
1 | One-part tariff | 2,22 | 2,33 |
2 | Two-part tariff | ||
2.1 | Day zone | 2,55 | 2,68 |
2.2 | Night zone | 1,78 | 1,86 |
3 | Three-part tariff | ||
3.1 | Peak zone | 2,89 | 3,03 |
3.2 | Half-peak zone | 2,22 | 2,33 |
3.3 | Night zone | 1,78 | 1,86 |
3. Electricity tariffs for consumers equal to the population (including VAT).
* The list of consumers who are equal to the population was approved by Decree of the Government of the Russian Federation of December 29, 2011 N 1178 “On pricing in the field of regulated prices (tariffs) in the electric power industry”
№ | Indicator of consumer group with tariff breakdown by rates and differentiation by day zones | 1st half of 2020 | 2nd half of 2020 |
price, rub. for 1 kWh | |||
— Population living in rural settlements and equivalent areas — Gardening, gardening or dacha non-profit associations of citizens are non-profit organizations established by citizens on a voluntary basis to assist its members in solving general social and economic problems of gardening, horticulture and dacha farming. — Guaranteed suppliers, energy sales, energy supply organizations that purchase electrical energy (power) for the purpose of further sale to categories of consumers equal to the population specified in this paragraph | |||
One-part tariff | 2,22 | 2,33 | |
Two-part tariff | |||
Day zone | 2,55 | 2,68 | |
Night zone | 1,78 | 1,86 | |
Three-part tariff | |||
Peak zone | 2,89 | 3,03 | |
Half-peak zone | 2,22 | 2,33 | |
Night zone | 1,78 | 1,86 | |
— Legal entities purchasing electrical energy (power) for the purpose of consumption by convicts in the premises for their detention, subject to the availability of separate metering of electrical energy for these premises. — Religious organizations maintained at the expense of parishioners. — Associations of citizens purchasing electrical energy (power) for use in their outbuildings (cellars, sheds). — Non-profit associations of citizens (garage construction, garage cooperatives) and citizens who own detached garages, purchase electrical energy (power) for consumption for household needs and not used for commercial activities. — Guaranteed suppliers, energy sales, energy supply organizations that purchase electrical energy (power) for the purpose of further sale to categories of consumers equal to the population specified in this paragraph | |||
1 | One-part tariff | 3,17 | 3,33 |
2 | Two-part tariff | ||
2.1 | Day zone | 3,65 | 3,83 |
2.2 | Night zone | 2,54 | 2,66 |
3 | Three-part tariff | ||
3.1 | Peak zone | 4,12 | 4,33 |
3.2 | Half-peak zone | 3,17 | 3,33 |
3.3 | Night zone | 2,54 | 2,66 |
Resolution of the State Committee of the Republic of Bashkortostan No. 487 came into force on January 1, 2020.