The Russian government has approved a resolution that amends the procedure for the formation of indexes for the increase in utility bills. The purpose of the legislative initiative is to prevent unreasonable growth of prices for housing and communal services above the level of inflation.

"I signed a decree that would allow more tightly control the prices of utilities, to prevent their unreasonable increase above the level of projected inflation," Medvedev said at a meeting on the achievement of national development goals in the economy and the housing sector.

The head of government recalled that at the moment for the regions limiting indices are being established for the growth of tariffs for housing and communal services, but there are a number of reasons for exceeding them. According to Medvedev, not all of them are fair.

“Now there are fewer such grounds, in accordance with this document. The tariff imbalance is no longer possible just to be eliminated, shifting the costs to the residents, ”the premier noted.

In addition, the regions will now be obliged to coordinate the excess of the index with the Federal Antimonopoly Service.

  • Prime Minister Dmitry Medvedev
  • RIA News
  • © Alexander Astafiev

According to the Central Bank’s forecast, inflation in Russia in 2019 will be 4.2–4.7%. However, the head of the Ministry of Economic Development Maxim Oreshkin considers this figure too high. In his opinion, the inflation rate will not exceed 4%.

In March, Igor Artemyev, head of the Federal Antimonopoly Service, pointed out that in most regions housing and communal services rates are too high. At the same time, Russians on the set of communal positions "have long overpay more than 100% of the cost."

“All these conversations, that we are somehow miserable there, do not pay extra to these communal monsters — this is all bullshit,” he said.

We add that in May, State Duma deputies in the first reading passed a bill that prohibits the transfer of debts on housing and communal services to collectors. According to the document, the right to work with public utility debts may belong only to direct participants in this market. Thus, we are talking about management companies, housing cooperatives, homeowner associations and organizations that ensure the delivery of certain resources (water, gas, electricity, etc.).

“Such initiatives can only be approved”

Deputy Chairman of the State Duma Committee on Economic Policy, Industry, Innovative Development and Entrepreneurship Vladimir Gutenyov welcomed the initiative of the Russian government, which is designed to prevent unreasonable growth of prices for housing and communal services above inflation.

“I think that any initiatives that are aimed at curbing the growth rate of payment for utility services above inflation can only be approved,” he said.

He also expressed the opinion that the FAS should very strictly control possible requests for exceeding the established index. According to him, natural monopolists very often promote the growth rate of the cost of their services.

“The principle should be applied in relation to the tariffs of natural monopolies, tariffs for utility services. This is the principle of "inflation minus." Minus 0.5% or 1%. But on the measures of social support for indexation of pensions, increase in social support of those or other vulnerable groups, the principle of “inflation plus” should be applied. Thus, we would come to a more equitable social state and to improve the situation for enterprises, ”said the parliamentarian in a conversation with RT.

As the expert in the housing and utilities sector, Yevgenia Yunisova, noted, it is not the first time that the government adopts such resolutions. The reason is that the established restrictions are not observed due to the appearance of new payments and services.

“For example, on January 1, 2019, in most regions a new payment was introduced for the service of removal and processing of municipal waste. Previously, these expenses were included in the payment for the maintenance and repair of common property, but now it is a separate line in the receipt. This service, as a new one, did not apply this restriction. I hope that the adopted resolution will be connected with the fact that any new service, whatever it appears, will not exceed the rate of inflation, ”the source said.

She also explained that why the growth of utility tariffs should not be higher than the rate of inflation.

“We have for a very long time, the rise in prices for housing and communal services has exceeded the rate of inflation, both predicted and actual. When inflation was 6%, housing growth was 11%. Due to the fact that for many years there has been a rapid increase in the prices of housing and public utilities, family budgets did not sustain it. Most people were forced to refuse a number of services, ”said Yunisova.