Prices and taxes

IEA 2011 (Energy Prices and Taxes) provides prices for some sectors for Russia in 2009. However, because the price of for instance gas and electricity varies considerably between regions and user groups various Russian sources have been consulted to create a more representative set of prices for each LIBEMOD-region. Two scenario reports published by the Agency for Forecasting (under the Ministry of Energy of the Russian Federation) have forecast prices for each of the seven federal regions for 2009 and 2010. These prices are not used directly, but they give an idea of how the prices differ between regions.This information has been used to create regional prices based on the national price from the IEA (Energy Prices and Taxes).[1] In the cases where it has not been possible to find a regional price for an energy source, assumptions have been made based on the information available.

ABPE (2011) has a set of electricity prices by consumer group for each of the federal districts in 2009. The prices for each of the three model regions have been found by taking the weighted average of the prices in the relevant federal districts. The source has prices for 8 different consumer groups. “Industry” has been used for the industry sector, “non-industrial consumers” for the service sector and an unweighted average of “urban population” and “rural population” for the household sector.

Finding end-user prices for the different sectors for natural gas has not been straightforward. Two sets of tariffs for the 83 regions for gas from the Federal Tariff Service in Russia have been used as a starting point.[2] These are the prices Gazprom charges the distribution companies, depending on whether they sell the gas to household or wholesale customers. The end-user price to households is also regulated and published each year by the regional tariff authority. To find the end user prices for households in 2009 regional websites were consulted and a dataset created from the available prices.[3] This, along with the tariffs from FTS, gave an idea of how the end-user price of gas varies from region to region. IEA Energy Prices and Taxes has a national natural gas price for industry in Russia in the base year. This and the regional forecast prices from “Scenario Conditions of Electricity in the Russian Federation from 2009-2020” was used to create the natural gas price for industry for the three LIBEMOD-regions.  

IEA Energy Prices and Taxes (2011) has national prices for steam coal and coking coal to industry. “Scenario Conditions of Electricity in the Russian Federation from 2009-2020” has forecast prices for 2009 for the federal districts for coal from different coal fields. This is used to create a regional dataset of prices of steam coal and coking coal to industry and electricity production. For the household sector the industry price with an added distribution cost has been used for each region.[4] For lignite the same source has been used assuming that the prices of coal from coal fields known to produce lignite apply to lignite.[5]

IEA (2011) has a national “heavy fuel oil” price for industry. “Scenario Conditions of Electricity in the Russian Federation from 2009-2020” has forecast prices for oil (to electricity producers) for 2009 for each of the Russian federal districts. The variation in the forecast prices has been used to adjust the IEA price for each LIBEMOD-region. For electricity producers the forecast prices have been used (these are close to the industry price from the IEA). For households the regionalised industry prices were used with an added distribution cost.[6] For oil in the transport sector the IEA has national prices for unleaded premium and automotive diesel. These along with daily prices of petrol in the 83 Russian regions[7] were used to get a regional dataset.  

For biofuels there is no consumption in Russia in the base year so a price set based on the European price level has been created. Biomass prices are based on wood pellets prices from Rakitova et al. (2009). This report has some pellets prices from 2009 for residential and industrial consumers. A dataset with prices for the three LIBEMOD-regions for all sectors has been created based on this source and own assumptions.


[1] Russia is divided into 83 smaller regions and in the official tariffs for gas, and minimum and maximum prices for electricity, we therefore have sets of 83 prices. As mentioned, the forecast reports operate with the seven federal regions, whereas we in our model have tree regions. We have therefore used averages, sometimes weighted on population, to get a set of three regional prices. 


[3] The data available for each region varied considerably. Most regions only had data for the current year (2013) on their websites. We gathered the 2009-prices that were available, and also looked to the differences in price between regions in the 2013-data as it is assumed that the increase in the gas price has been relatively similar across regions (based on federal policy).

[4] This is based on the distribution costs of coal to households in Eastern Europe.

[5] This is not clearly specified in the report, however with the names of the extraction areas it is possible to identify a few coal mines where brown coal (lignite) is extracted.

[6] This is based on the distribution costs of oil to households in Eastern Europe.

[7] Found through This online tool provides daily prices of petrol, but only a few months back (beginning of 2013). We therefor implicitly assume that the regional differences stayed the same between 2009 and 2013. 

Emneord: electricity, coal, end-user, Russia, regions, oil, prices, natural gas
Publisert 20. aug. 2014 11:37 - Sist endret 20. aug. 2014 11:37