Lukashenko directs State Control Committee to monitor electricity rates

Belarusian President Alexander Lukashenko has instructed the State Control Committee to supervise electricity ratemaking. Alexander Lukashenko made this statement during his trip to the Bereza state district power plant on 14 August, BelTA has learned.

The head of state was informed about the fulfillment of his instructions to improve the Belarusian power grid. According to Energy Minister of Belarus Vladimir Potupchik, the modernization of the Belarusian power grid helped save 2.058 billion cubic meters of gas, or the equivalent of $650 million. In his words, the measures taken will allow saving 1.130 billion cubic meters of gas, or $260 million annually starting from 2015.

Vladimir Potupchik noted that although Belarus pays 1.7 times more for gas compared to Russia, the cost of electricity and heat energy production is the same. However, energy rates for Belarus’ production sector are higher. According to the minister, this situation is the result of cross-subsidizing. Cross-subsidies are the reason why households in Belarus pay 5 times less for energy than those in Russia. Vladimir Potupchik noted that energy rates have been reduced for the production sector for the first time in 2014. This year cross-subsidies have been cut by $250 million.

“We need to carefully analyze these and other matters,” Alexander Lukashenko said addressing First Deputy Chairman of the State Control Committee Leonid Anfimov.