Conference call
Dmitry Medvedev’s opening remark:
Today we will discuss ways to strengthen financial discipline in natural gas supplies. Unfortunately, payment arrears in this sphere keep growing every year. Russia is among the world’s leaders in the production and export of natural gas, but this doesn’t mean that we should go against economic logic and supply gas to domestic consumers free of charge. This is impossible.
Dmitry Medvedev: "Starting next year we have frozen the prices of natural monopolies and infrastructure companies, including Gazprom."
The Government is taking measures to reduce the burden on consumers, who should be seriously responsible for paying for gas in full and on time. Starting next year we have frozen the prices of natural monopolies and infrastructure companies, including Gazprom. In fact, we have placed very strict budget limits on Gazprom, and so we should create conditions for the 100% collection of gas payments. I think that everyone must know that there will be no debt amnesties or gas communism in the future.
According to Gazprom, total payment arrears have exceeded 100 billion roubles. Furthermore, Gazprom is investing major funds in connecting new users to the gas supply system in the regions. It has invested 180 billion roubles since the launch of this programme seven years ago. Nothing of a comparable scale was done before that, not even in the Soviet period. There was minor progress in some places, and nothing at all in other areas. I’d like to say that many of the post-Soviet republics were connected to the gas supply network during the Soviet period, whereas only 20% or 30% of Russian rural areas had access to gas. This is what we inherited from the Soviet era, and this is what Gazprom and the Government have been working on as part of the gas supply programme in recent years. I mention this because Gazprom fulfils its social commitments. Gas translates into heat, electricity and, in general, the economic development of our regions and cities. The point at issue is the quality of life in our cities and villages.
Dmitry Medvedev: "Furthermore, Gazprom is investing major funds in connecting new users to the gas supply system in the regions. It has invested 180 billion roubles since the launch of this programme seven years ago."
Payment arrears affect Gazprom’s ability to connect new users to the gas supply system. New users often go into debt as soon as they are connected to the system. (…) In this regard I’d like to tell regional heads that your direct task is to adjust the local infrastructure and to ensure the financial discipline of all groups of consumers. This is not the task of Gazprom, the Ministry of Energy or the Government.
Dmitry Medvedev: "We should make it completely transparent to the public, with clear rules for both gas suppliers and consumers."
The housing and utility services are the biggest debtors. We definitely need to introduce modern energy efficient technology and automated diagnostic and resource accounting systems in this sector. We should make it completely transparent to the public, with clear rules for both gas suppliers and consumers. Today I want you to propose concrete steps which will not only help us to streamline the operation of all kinds of mediators (that is, management companies), but also prevent criminal schemes of avoiding the repayment of arrears.
We will also need to discuss the possibility of limiting gas supply to unprincipled energy providers. It is obvious that this measure must not affect individuals who pay their utility fees on time and in full, but we should find a way to punish those energy and heat providers that do not pay for gas. It should be said, though, that the majority show financial discipline.
The time has come for amending legislation to close loopholes in this sphere. There have been cases when generating companies have provoked gas suppliers into approving limitations so as to be able to use more expensive fuel such as fuel oil and hence to raise heat prices for the public. And then the company in question resumes the use of gas and hence secures a higher profit. This is one example, but there are probably many more of them.
Everything I have said so far concerns not only the domestic situation and the Russian regions, but also the need to receive payment for gas exports, which is a major revenue share for Gazprom as well as the federal budget.
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