Taxation of electricity market participants in the context of technological losses of electricity in power grids

The purpose of the study. The issue of accounting by tax authorities for the purposes of calculating corporate income tax and VAT of technological losses of electricity in electric power equipment and electric networks causes a lot of controversy in the electricity market. Currently, technological losses of electricity in electric grids are calculated by the Federal Tax Service based on the electricity loss rates calculated by regional energy commissions for each year for the needs of tariff setting. At the same time, the very magnitude of such losses should be calculated based on the characteristics of the equipment itself, its location and age, which is not taken into account by racks. Losses calculated for tariff setting affect the price of electricity in the region and may be artificially underestimated by the racks for political reasons, and electric grid companies are legally required to buy the entire volume of such losses. This approach does not take into account the physical properties of the equipment, such as wear, season, weather, and the climate zone in which the equipment is located. To solve this problem, we propose to supplement paragraph 7 of Article 254 of the Tax Code with subparagraph 3.1, which defines the procedure for calculating technological losses for the electricity market, as well as introduce coefficients of seasonality, climatic zone and wear. In order to unify tariff setting and state financial control in the electricity market, as well as calculate standards for technological losses of electricity in electrical equipment, it is proposed to create an executive authority authorized in the electricity market — the Federal Electric Power Service.