Anticipated increase in electricity costs by 12% for the upcoming year
In a recent announcement, the Federal Antimonopoly Service of Russia has revealed that electricity tariffs in Yakutia and across the country are set to rise by 4% starting from January 1, 2025. This increase is part of a series of regulatory measures aimed at managing utility pricing policies in the country.
The rise in electricity tariffs is in line with the broader economic context in Russia for 2025, where inflation and budgetary pressures are significant factors influencing public utility pricing. The average cost of electricity in the country is currently 6.99 rubles per kilowatt-hour, but this is set to increase to 7.87 rubles per kilowatt-hour, representing a 12.4% increase.
The Federal Antimonopoly Service has also developed electricity tariff corridors for the next year, which include minimum and maximum levels for different regions. These corridors aim to reduce cross-subsidization and "gray" mining, ensuring a fair distribution of costs across the country.
Regional tariff organs will set specific tariff values based on the developed ceiling prices. The forecast predicts that the maximum tariff in Russia, currently at 10.85 rubles per kilowatt-hour, could rise further. However, the exact details specific to Yakutia were not separately highlighted in the announcement.
The consumption of electricity per capita in Russia is approximately 1,200 kWh per year. Compared to the global average of $0.157 per kWh, the average price of electricity in Russia is $0.05 per kWh, which is three times lower.
The cost of electricity, like other communal services, is expected to rise from July 2025. According to the socio-economic development forecast, communal services are expected to increase by 11.9% in 2025, and by 4.8% in 2027.
This news comes after an 8.96% increase in the cost of electricity in the country from July of this year, as reported by Rosstat. The rise in electricity tariffs is expected to have an impact on households across Russia, but the exact implications are still to be seen.
The rise in electricity tariffs, in line with broader economic factors, suggests potential adjustments in Russia's business and finance sectors, as utility pricing policies continue to be a focus of regulatory measures. The Federal Antimonopoly Service's electricity tariff corridors, aiming to minimize cross-subsidization and illegal mining, also signal possible shifts in the country's business landscape.
