News

/ News
October 13, 2022

‘Alternative Boiler House’: Goals, Methods, and Means of Attracting and Managing Investments and Quality in the Field of Heat Supply

KEY CONCLUSIONS 


The use of the ‘alternative boiler house’ mechanism has proven to be an effective method 


“We believe in the alternative boiler house. We will continue to do it,” Pavel Snikkars, Deputy Minister of Energy of the Russian Federation.


“On the whole, the mechanism is definitely working, but it is definitely not the only one. For example, there are large federal subjects who say: ‘We will not switch to the alternative boiler house anywhere, because it seems to us that once we go there, we will lose leverage, <...> so we will not go there.’ This seems to us to be a very one-sided view. Because first of all, there is an annual control, and secondly, all parameters are also laid down. And in this sense, it seems to me, such fear is very exaggerated,” Vitaly Korolev, Deputy Head, Federal Antimonopoly Service of the Russian Federation.


“The mechanism works. If there are flaws, they need to be cleaned up, and in principle it is a working tool for contribution and investment. Even for this year, we have had a very smooth and gentle start to the heating season,” Vladimir Vasilenko, First Deputy Head of the Samara City District.


“It has been possible to optimize prices and tariffs in those regions and localities where ‘alternative boiler house’ methods have been applied, to obtain investments, and to build a more or less understandable regulatory and control system,” Vyacheslav Kravchenko, Adviser to the Chairman of the Management Board, System Operator of the Unified Energy System.


PROBLEMS 


High level of network wear and tear and lack of transparency 


“We have had quite an acute problem related to efficient utilization and cogeneration, <...> the country’s rampant boilerization, price and tariff differences even within the same locality for different consumers, <...> lack of investment,” Vyacheslav Kravchenko, Adviser to the Chairman of the Management Board, System Operator of the Unified Energy System.


“The issue of transparency and availability of information on all fronts is the most important thing right now. The biggest benefit, after all, is trust. Trust is information, openness, and discussion,” Pavel Snikkars, Deputy Minister of Energy of the Russian Federation.


SOLUTIONS


‘Fine-tuning’ and spreading ‘alternative boiler house’ mechanisms 


“The task is to try to adjust it [the alternative boiler house mechanism, – Ed.] to the existing realities, to build it up for the future,” Vyacheslav Kravchenko, Adviser to the Chairman of the Management Board, System Operator of the Unified Energy System. 


“The ‘alternative boiler house’ model is now undoubtedly being finalized. And many ideas, many changes are already under consideration in the government in terms of updated parameters,” Pavel Snikkars, Deputy Minister of Energy of the Russian Federation.


It is important to consider other approaches in addition to ‘alternative boiler house’


“The ‘alternative boiler house’ mechanism cannot yet be used in all locations due to the parameters that we and you built in at the start. <...> We realize that without updating the parameters, without making this tool more flexible, it will start to lose out to other <...> tools which should not be forgotten. <...> There should be more than one ‘dish on the table,” Olesya Leshchenko, Director of the Department for the Development of Housing and Communal Services, Ministry of Construction and Housing and Communal Services of the Russian Federation.


“We have some backlog of other ways to regulate in the heating system. So, I would draw the attention of regulators to the fact that they also need to improve,” Vyacheslav Kravchenko, Adviser to the Chairman of the Management Board, System Operator of the Unified Energy System.


Digitalization of mechanisms


“It is the integrated approach – modernization plus digital. <...> It is the organizational and digital transformation <...> that yields the greatest return,” Kseniya Sukhotina, General Director, Rusatom Smart Utilities Ltd.


“It is important for us to make the heat supply scheme accessible, digitizing it to a greater extent. <...> We <...> additionally interact in terms of approaches and strategies for <...> efficiency through digital,” Pavel Snikkars, Deputy Minister of Energy of the Russian Federation.

       


For more information, visit the Roscongress Foundation’s Information and Analytical System roscongress.org  and the official Forum website rusenergyweek.com.