USAID MERP experts conducted a seminar on December 8 “Concept for Tariff Setting System in District Heating, Water Supply and Sewage on Principles of Incentive Regulation – International Experience and Current Issues for Ukraine”. The event was attended by 65 specialists, including 40 representatives of business entities in the sectors of district heating, water supply and sewage, and 25 specialists of the National Energy and Communal Services Regulatory Commission. During the seminar, USAID MERP experts told about essence of the tariff setting system on the basis of incentive regulation, international experience of its implementation, identifying the regulatory asset base and cost of capital, etc. The experts also discussed with the seminar participants the prerequisites and regulatory framework necessary for implementation of this system in Ukraine, and made a brief overview of international consultants’ comments on the draft Concept for Introduction of Incentive Regulation in Ukraine developed by MERP. Participants also received information on the legal, technological and other types of unbundling by types of activities, including the concept and practice of unbundled accounting. Together with the experts, the participants discussed proposed amendments to the existing regulations on incentive regulation, as well as evaluation of assets as a necessary prerequisite for introduction of incentive tariff setting in Ukraine. The subject of incentive regulation is becoming more and more important. In particular, the Commission is taking certain steps for its implementation in the energy sector, while it is planned to introduce it in the district heating, water and sewage sectors in a few years, and this time will be used for preparation.