Increase in housing and communal services per year. Category “Utilities. So on average tariffs will increase
V. SHESTAKOV: We will talk with the first deputy chairman of the commission of the Public Chamber of the Russian Federation for the development of social infrastructure, local government and housing and communal services, Artyom Kiryanov. Artyom Yuryevich, hello! This 7% increase in tariffs - what can you call it?
A. KIRIANOV: What can you call it? This can be called a socially protected tariff.
V.Sh.: So this is still justified? And thank God it’s at least 7%?
A.K.: Yes, look at the situation. In our country, 30-40% is an increase in the consumer basket, something always increases in price, but at the same time there is a wish that tariffs never increase, which, of course, will lead, if they are not increased, to the collapse of the infrastructure.
Objectively, the increase in tariffs, for example, in Moscow should not be 7%, but 40-50%, but no government, including regional and Moscow - regardless of all other relations to it - will agree to this. Therefore, 7% is such a difficult compromise, which, on the one hand, allows us to increase at least something, but on the other hand, does not allow us to hope that there will be fundamental changes in services to the population
Artyom Kiryanov
V.Sh: That is, the decision was forced and so as not to offend anyone, roughly speaking?
A.K.: First of all, we see that this does not affect the majority of the population, but at the same time, unfortunately, we cannot expect that the bill and the services themselves will improve in the right proportion.
V.Sh.: Is there a risk that people will stop paying altogether and the volume of collections will decrease?
A.K.: No, our people are, as they say, the most grateful.
V.Sh.: Housing and communal services?
A.K.: Yes. People pay 94-96% for housing and communal services, individuals, so the proportion will continue to remain here - people will pay, but will not stop complaining, because the situation in housing and communal services can only be corrected by serious, in-depth reforms. Here it is necessary to introduce public-private partnership mechanisms. Then the situation will really change qualitatively, but while tariffs are rising like this, there is no one to ask.
V.Sh.: Thank you. First Deputy Chairman of the Commission of the Public Chamber of the Russian Federation for the development of social infrastructure, local government and housing and communal services Artyom Kiryanov.
V.Sh.: Let's talk with personal finance expert Mikhail Popov. Mikhail Borisovich, hello.
M. POPOV: Good afternoon
V.Sh.: You read news like this and you don’t know what to do? The increase in utility tariffs will hit people's wallets hard. If we also rely on the fact that our well-being has decreased by 15%.
M.P.: It is necessary to consider not only the increase in housing and communal services tariffs, the increase will affect everything else.
When basic tariffs increase, other prices are also recalculated. Of course, inflation and a decline in income await us in full
Mikhail Popov
But it seems to me that we ourselves chose this life. IN certain moments choice, we don’t think about it, we look at geopolitical stories - there is no competition in housing and communal services, so there is no hope for lowering prices and increasing efficiency, and it is clear that both 7% and 10% will raise, this will hit, as usual, food, according to the wallet, according to everyday expenses.
V.Sh.: That is, our gaze will gradually move from the TV to the refrigerator?
M.P.: I hope that the refrigerator will win in our country someday. People will think that they need to choose a different path of development.
V.Sh.: And if you act quickly, then how to distribute expenses now?
M.P.: People are already saving: if you look at the statistics, the amount of entertainment, going to restaurants, and so on has been falling for the last three years. People have already cut everything, if we are talking about average and low income, the quality of the consumer basket is declining. People are trying to stay within their food budget, but the food is of lower quality than before. Therefore, I don’t know what can be advised in this situation. In my opinion, this already needs to be dealt with somehow.
V.Sh.: Got you. Personal finance expert Mikhail Popov was with us.
Paying for utilities is a heavy burden for many citizens of our country. Payments for gas, electricity, heat and water eat up a significant part of wages. Many are forced to save money to keep the utility load as low as possible. How will utility prices behave in 2017? Will there be an increase in the cost of housing and communal services and what is the government doing to reduce this burden for people.
According to analysts, prices for services directly depend on the state of the economy in the country. If we take into account the fact that Russia is in a deep economic crisis, we can assume that we cannot avoid tariff changes in 2017.
Today it is already known that the increase in the cost of utilities will be around 4%. It is planned to increase the cost of housing and communal services from July 2017. However, there are opinions that not all services will become much more expensive; for example, an analysis of the cost of electricity showed that thanks to the indexation of enterprises, the increase in the cost of light can be reduced to the 2012 level.
Why are prices rising?
Many of us do not understand why the cost of utilities increases from year to year. For many of us, receipts with new tariffs become a cause for concern, because wages remain at the same level. Pensioners are particularly concerned about rising prices, because they are the most vulnerable segment of the population in our country.
First of all, prices for housing and communal services depend on the cost of fuel; there are a number of other items that affect the pricing of utilities. Thus, the government should first regulate the cost of fuel, and develop an indexation plan for individual enterprises. Today, the government has already begun to develop an investment plan for 2017 for GazProm in order to stop the rise in gas costs.
According to the plan, investments should be designed for several years, which will help stabilize fuel prices.
In addition, the government stated that the owner of the gas must invest his personal funds in the development of the enterprise. This will help increase fuel consumption growth and consequently lead to higher profits.
The economic blockade of Russia plays an important role in increasing the cost of gas. Sanctions do not allow our country to attract investors from abroad, which negatively affects the economic situation as a whole. The lifting of sanctions may improve the situation, but there is no hope for this today.
In accordance with this situation, the government can take the following measures:
- Limiting the growth of tariffs for the population.
- Tougher measures against debtors.
- Drawing up a new tariff calculation scheme.
Gas and heat cost forecast 2017
Gas prices will rise the most. The increase in fuel tariffs will occur in accordance with inflation and will reach 3%. The price increase will begin in July and will continue for 3 years. At the same time, the level of price increases may be significantly higher than predicted.
Gas bills will increase not only for residents, but also for industry, but for them the price will not rise so sharply.
Heat payment figures will also increase from July 2017. Presumably the index will be around 4.9%. Today, the President’s Office is considering the option of linking housing and communal services tariffs to inflation of the national currency. This is the only way, according to government representatives, that the country will be able to stay afloat in this difficult time for everyone. With GDP growth, the situation will stabilize and the increase in the cost of utilities will not be so significant for the population.
Water price forecast
Regarding the rising cost of water, Elena Dovlatova (executive director of RABB) said that this measure is simply necessary, and it is absolutely impossible to abandon it. According to Dovlatova, people generally do not want to pay for water, believing that it should be supplied to their homes for free. But then how can pipelines and treatment plants be maintained?
Today, most of these enterprises are already unprofitable, and if we want to have clean water in our homes, we need to invest in their modernization. According to experts, the price of water will rise by 4.9% in 2017. Price increases will continue until 2019 inclusive.
Light price forecast
Unlike the cost of gas, the price of electricity will not rise as rapidly for residents of the country as previously expected. Tariffs most likely will not reach the final price announced by the Ministry of Economic Development. It was previously announced that the increase in light prices in 2017 will be 7.1%.
Thus, it can be assumed that electricity will not become the main part of costs for housing and communal services for consumers. At the same time, the government is also developing a plan of measures to tighten the fight against persistent defaulters.
When will receipts with new tariffs arrive?
Tariffs for housing and communal services in our country are growing every year. However, price increases do not occur at the beginning of the year, but from July 1. So, in winter, we do not need to be afraid of rising prices, because this can become a huge burden for the population.
In general, all public utility services for the population will increase by 4.9% in 2017. The government says that this increase is justified by the inflation forecast.
The most vulnerable segments of the population will have their wages and pensions indexed, which will help reduce the financial burden on paying their bills. services.
Also an increase in the cost of com. services will continue in the next two years. According to forecasts in 2018, com. services will rise in price by another 4.4%, and in 2019 the price increase will approach 4.1%.
Rail transportation services
In addition to utilities, it is planned to increase prices for rail transportation. This will affect both freight and passenger transport. From July 2017 we will pay 4.9% for tickets. This tariff increase is also due to the forecast of rising inflation in the country.
Discontent among the population
The government is confident that raising tariffs will inevitably cause discontent among the population; of course, who wants to pay more for utilities than usual. However, as analysts explain, it is impossible to do without raising tariffs.
Today in the country more than half of public utilities are recognized as unprofitable. There are not enough funds to modernize and maintain networks. However, the planned price increase will not cover even part of the necessary expenses.
The increase will only cover the inflation rate and help utilities stay afloat.
At the same time, the government is developing measures to reduce the burden on the population. Careful monitoring will be carried out over the activities of public utilities in order to exclude unreasonably increasing tariffs. For this purpose, special commissions have been created that will exercise control over the owners of farms.
Today in the media you can often find horrifying news about rising tariffs for electricity. services. However, price increases occur in our country every year, and we are all already accustomed to it. It is worth noting that the government of the country is doing everything possible to make this burden as less noticeable as possible for the Russian population. Today, strategies are being developed to get the country out of the difficult economic situation. Let's hope that Russia will still be able to restore its economy, despite the sanctions and negative policies of the West.
Protection for those dissatisfied with the quality of services has been strengthened
From July 1 of this year, tariffs for housing and communal services should be indexed by 4%. The Ministry of Economic Development notes that such an increase in the amount of fat will not exceed the level of predicted inflation. Meanwhile, consumers consider tariff indexation to be an unjustified measure. 90% of the country's population is convinced that the cost does not correspond to the quality of services provided by public utilities. The Supreme Court of the Russian Federation sided with citizens and allowed them to demand monetary compensation for moral damage.
Increases in prices for gas, water, electricity and other benefits of civilization occur regularly in Russia. In September 2016, the powers that be announced that the cost of housing and communal services would increase in the country over the next three years: this year by an average of 4.9%, in 2018 - by 4.4%, in 2019 - by 4.1 %. But even despite a slight decline in numbers, citizens continue to be indignant and wonder why we pay more, while the quality of housing and communal services is still far from ideal.
Back in November last year, the Government of the Russian Federation approved indices of changes in fees paid by Russians for utility services in the constituent entities of the Russian Federation. According to the document, the average increase in tariffs for housing and communal services in the second half of 2017 will be: in the Republic of Sakha (Yakutia) and in the Kamchatka Territory - 6%, and in the Kemerovo region prices will be increased by 5.9%. The minimum increase in tariffs will occur in North Ossetia-Alania - 2.5% and in the Kabardino-Balkarian Republic - 3.3%.
In June of this year, Deputy Minister of Economic Development Nikolai Podguzov announced that from July 1, tariffs for housing and communal services will be indexed, but will not exceed the level of predicted inflation of 4%. The official noted that this decision was made by the FAS.
Typically, the practice of increasing tariffs for housing and communal services occurs as follows: the authorities make a fundamental decision under the control of the Federal Antimonopoly Service and taking into account the “inflation minus” methodology, that is, the increase in the entire tariff schedule should not exceed the level of the consumer price index.
“For each of the regions, at the level of the order of the government of the Russian Federation, a certain level has been established, above which tariffs cannot be increased. For example, for St. Petersburg and Yakutia - 6%. For regions with relatively low income levels, the cut-off point is about 3.3-3.4%. These figures mean that regions cannot index tariffs below this level. Above they can, but this needs to be justified in detail. The final size of tariff increases is set at the level of regional politicians and departments,” Anna Bodrova, senior analyst at Alpari, tells MK. “The average 4% this year will be equal to the tariff growth rate for 2016, that is, from a numerical point of view there is no contradiction here.”
While managers were deciding to what level they should raise tariffs, the Accounts Chamber of the Russian Federation asked Russian residents how they assessed the quality of housing and communal services (HCS). The online survey, which was conducted from February 1 to May 2, 2017, was attended by 3.2 thousand citizens from more than 60 constituent entities of the Russian Federation. The results showed that 46.8% of respondents were not satisfied with the quality of housing and communal services. Among the most dissatisfied were residents of Arkhangelsk, Bryansk, Voronezh, Ivanovo, Samara, Murmansk, Novgorod regions, Primorsky and Krasnodar territories, the republics of Karelia and Komi. 88.9% of respondents are convinced that the price of the services provided does not correspond to their quality. According to the survey, 87.6% of residents of our country claim that the amount of money for housing and communal services has not decreased even after the major repairs.
The population, as dissatisfied with the cost and quality of housing and communal services, will remain so, Anna Bodrova believes. “It's a double-edged sword. On the one hand, there is a lack of regulation, strict liability frameworks and prosecutions for money laundering, and on the other hand, the population simply cannot pay more, because incomes are falling catastrophically.” Naturally, the increase in tariffs will be different in the regions, since the state of the infrastructure and the organization of work differ from each other, says Dmitry Baranov, leading expert at Finam Management Group. “It is clear that the quality of housing and communal services is gradually changing, but we should not expect a sharp increase in consumer satisfaction, it will happen gradually,” he emphasized.
By the way, on June 13, the Supreme Court of the Russian Federation on issues of litigation in the housing and communal services sector officially allowed residents who are not satisfied with the quality of services provided by public utilities to demand material compensation for moral damage. It is possible that the number of lawsuits brought to court by angry citizens will increase sharply.
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