In Russia, they spoke about the consequences of the abolition of benefits for the use of water

The Ministry of Nature of Russia wants to end the grace period for the use of water facilities for business in 2023 and return indexation from 2024. On the possible consequences of the cancellation of benefits told Associate Professor of the Department of Corporate Governance and Innovation of the Russian University of Economics G.V. Plekhanov Maxim Maximov in an interview with the Prime agency.

According to the expert, the coefficients of payment for the use of water resources for enterprises can increase by 1.5 times. This will also affect the industry. The department explains this decision by the need to finance environmental and flood protection measures – the problem is relevant in connection with climate change.

“It is difficult to disagree with this fact if we evaluate the overall picture with the organization of engineering and protective structures in the flood zone. However, the tools for implementing this task raise a number of obvious questions,” the economist emphasized.

It’s about the cost of electricity. According to the specialist, in case of an increase in rates, the share of payment for water use in the cost of sales for some HPPs will exceed 40 percent. This is a “critically high value”. The situation may affect the investment programs of generation and lead to the activation of the maximum savings regime.

On October 27, the Ministry of Natural Resources proposed to increase the coefficients of payment for the use of water resources for enterprises by 1.5 times. The adjustment of the fee rate will increase federal budget revenues in 2024 by 6.5 billion rubles, and in 2025 by 7.5 billion.