“On average 324 rubles.” Prices of housing and communal services have increased in Russia since December 1 In Russia, since December 1, tariffs for housing and communal services have been indexed until July 2024

tariff increase

According to RIA Novosti, since December 1, tariffs for public services have been increased in Russia. This is the second time in a year. As Izvestia clarified, the changes are being introduced in conjunction with a government decree of 14 November.

The press service of the Moscow Department of Economic Policy and Development TASS confirmed that prices for housing and communal services will increase by 9%.

“From December 1, the cumulative increase in the cost of utilities [в Москве] According to the forecast of the Russian Ministry of Economic Development, 9 percent will be set at the federal level, which is almost 5 percentage points below the inflation rate – the average annual inflation in the country will be 13.9 percent.

The press service said that utilities tariffs have been indexed since 1 December and housing tariffs since 1 January. The ministry added that the tariffs will not change until July 1, 2024, following the current increase in housing and communal services costs.

“The cost of waste management services this year will remain almost unchanged. The minimum contribution for capital repairs will be set at 24.09 rubles per square meter. m,” the Department of Economic Policy and Development promised.

They also reported that in 2023, social payments in the capital will be indexed by 10%, above the limit set for the growth of tariffs for utilities. In addition, subsidies and subsidies for housing and social services will continue. According to TASS, about four million people in Moscow benefit from benefits and subsidies.

“Concurrently with the indexation of tariffs, standards for the cost of housing and communal services will be revised to calculate subsidies to citizens that will provide support to those in need. Subsidies can be received by all Muscovites whose housing and communal service expenses are more than 10 percent of their total family income.

Index transfer

The fact that housing and communal services tariffs will be indexed in the Ministry of Economic Development from 1 December reported September 23.

According to the agency, initially the prices for services were supposed to be increased on July 1, 2023, but the government decided to index earlier.

It is also stated that the indexation will affect the tariffs for gas, electricity transmission, water and heat supply, as well as domestic solid waste.

“Due to this decision, there will be no tariff indexation for more than one and a half years. The next indexation will only occur on July 1, 2024. The delay is due to the need to ensure the uninterrupted functioning and development of housing and communal services infrastructure throughout the country in order to maintain the provision of high-quality housing and communal services for the population. Tariff indexing is required for the renovation of the heating network, water pipelines and other facilities.

The Ministry promised that the maximum increase in the cost of housing and communal services throughout the country will not exceed 9%. According to the calculations of the Ministry, the average monthly payment for a family of three will increase by 324 rubles from July 1, 2024 – by 248 rubles, and from July 1, 2025 – by 221 rubles.

“The final decision on the level of indexation in a particular region will be made by the Government of the constituent entity of the Russian Federation. “The Russian Federal Antimonopoly Service will check compliance with approved limit indices and will not allow unreasonable growth,” he said.

The ministry also added that all social payments will be indexed according to the real inflation value in 2022.

“Such a decision (to raise tariffs) has been prepared for the past few years. The dynamics of payments to Izvestia for housing and communal services in 2021 lagged behind inflation, and in 2022 this gap has become very high, ”said Yuri Sahakyan, director general of the Institute for Problems of Natural Monopoly.

According to him, low tariffs threatened to underfund public service infrastructure.

“It’s more about transferring indexation from the middle of next year to the end of the current year, rather than additional indexation. If the subsequent increase in tariffs occurs only in mid-2024, then the impact on the household budget as a whole will remain moderate, ”says the expert.

But Yegor Klopenko, founder of the investment company Klopenko Group, fears that “in the most difficult situation in the economy, the measure may lead to a decrease in fees from the population.” It also acknowledges that “to support the industry, we need to raise tariffs now, before winter”.

Since Thursday, tariffs for housing and communal services have increased in Russia. The cost will not increase more than 9%, which is almost 5% below the inflation rate. Now rates will not increase until at least a year and a half, July 2024.



Source: Gazeta

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