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The seminar focused on analyzing the conflicts that arise when service providers use government-regulated prices. The discussion covered possible reasons for these conflicts, as well as pre-trial and court strategies to defend the service provider’s interests. The participants analyzed conflict resolution practices involving regulators, and considered a series of cases of restoration of the rights violated by inappropriately applied regulated prices.

VEGAS LEX Managing Partner Alexander Sitnikov moderated the event.

The first session was devoted to the development of legal framework for the application of regulated prices. The speakers included Maria Golovko, head of the lawmaking division at the Federal Tariff Service's Legal Department, and Alexander Lavrentyev, head of the Fuel and Energy Group at VEGAS LEX. The discussion focused on changes in the government regulation of prices in the power and water supply sectors, and on other important issues pertaining to the industries’ regulatory framework.

The second session, Conflicts and why they arise: Types of disputes and disagreements, focused on contesting government-approved prices and on various strategies that businesses use to defend their rights where the prices of their services have been regulated inappropriately. The participants considered examples of claims raised against resource suppliers. VEGAS LEX lawyers – head of the Energy Projects Practice Evgeniy Rodin, senior associate with the Energy Projects Practice Yuriy Tatarinov, and senior associate with the Energy Projects Practice Alexei Pakhalkov – spoke at the session.

At the third session, the speakers reviewed various disagreements and pre-trial settlement procedures. Batradz Metsayev, head of the remedy division at the Federal Tariff Service's Legal Department, Andrei Gromov, head of the pre-trial settlement division of the Federal Tariff Service's Audit Department, and Ivan Stepanenko, deputy head of the Federal Tariff Service's Legal Department, spoke about failures to follow the procedure for approval of prices, described the underlying principle of regulated prices being economically justified and reviewed cases of abuse of office by state regulators. They also cited some statistics on pre-trial consideration of conflicts and disagreements.

The event was attended by about 70 representatives of generation companies, major consumers, grid companies, energy construction companies, and industry unions.

For more information on VEGAS LEX services in the area of tariff regulation in the power and heat supply sectors, go here.