Every resident of our country is concerned about the issue of increasing housing and communal services tariffs in 2020. The government has developed a plan for the development of housing and communal services, the main goal of which is to improve the quality of public services to the population.
Will this affect you and me? What surprises are expected from housing and communal services in 2020? Let's figure it out.
Law
According to the current housing legislation, tariffs as of January 1, 2020 cannot exceed tariffs as of December 31, 2020. This is due to the Decree of the President of the Russian Federation that tariffs for housing and communal services should not increase faster than last year’s inflation.
The law on increasing housing and communal services tariffs for 2020 was adopted in 2020; therefore, inflation in 2020 is taken into account. According to Rosstat, in 2020 it was 4%.
But, within the framework of the law, local regional authorities can increase or decrease the rate.
Another innovation that awaits us is the bill on the “single receipt”, which provides for amendments to Art. 155 of the Housing Code. Currently under consideration in the State Duma.
The bill on the EPD (Unified Payment Document), which will contain detailed information on all housing and communal services - what, to whom, and how much a citizen must pay. Such receipts will be sent electronically.
Also, on August 6, 2020, the Government of the Russian Federation developed a transition to a new method for setting tariffs for heat supply, water supply and sanitation. The goal of such a plan is to increase the fairness and transparency of tariff setting.
It is planned to make tariffs loyal to citizens and sufficient for resource supply organizations, based on market prices and the technologies used.
Russians were promised a reduction in housing and communal services tariffs
Changes in Russian legislation have become so effective that they have helped save millions of Russians from rising prices for housing and communal services, said the head of the Federal Antimonopoly Service Igor Artemyev at a meeting with Russian Prime Minister Dmitry Medvedev. Now, the head of the department said, tariffs have stabilized, and in the future they will be reduced altogether in 90% of cases.
“After federal laws were adopted on your instructions, (...) which eliminated the loopholes of the legislation of the 90s, which allowed regions and local governments, in general, to increase tariffs uncontrollably above the maximum values established by the government of the Russian Federation, we have already identified about 100 cases of such attempts since these legislations came into force. We stopped them, and in fact, millions of Russian citizens did not receive an increase in these tariffs this year only because new legislation was adopted,” Artemyev said.
In addition, he noted that in some cases today tariffs “can be increased, but only with the permission of the government and the FAS.” “The orgy of the 90s and 2000s - and last year alone there were more than 800 such excesses - it has been stopped,” added the head of the antimonopoly department.
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And yet, Ilya Zharsky, managing partner of the Veta expert group, said in an interview with Vek, there is some cunning in the FAS position. In his opinion, this statement is aimed at smoothing out the growing negative from the inevitable increase in tariffs for housing and communal services. This industry, which directly depends on a large number of factors, the formation of prices for heat, light, and water resources does not depend on the will and decision of the regulatory authorities, but only on the general economic situation in the country. And therefore, statements such as that all possible loopholes for uncontrolled price increases have been removed cannot be 100% true.
“I can assume that this is most likely being done in order to smooth out public discontent, but, unfortunately, most likely, this cannot be avoided again from the new year, since Russians there traditionally find more and more new numbers in payments and they are completely justified - tariffs are rising not because utility companies want to earn an extra ruble; they are forced to do so by rising operating costs, including the wages of hired workers employed in this industry,” says the analyst.
Zharsky also adds that, despite high tariffs, the housing and communal services industry in Russia is far from an ideal state, and this is largely due to the multimillion-dollar debts of service consumers - private households and industrial enterprises in a difficult financial situation cause problems for utility companies, and turning them off from resources is not always an easy task. Therefore, no matter how difficult the system for forming the cost of housing and communal services may be, this industry in our country will not become completely transparent anytime soon.
If we talk about stabilizing housing and communal services tariffs, the FAS means that in the first 2 months of autumn 2020, prices did not increase, explains, in turn, the head of the analyst group at the Center for Analytics and Financial Technologies, Mark Goikhman. However, it is unlikely that this is the decisive merit of changes in legislation, he told Vek. The same zero increase in the cost of housing and communal services was observed in the autumn months of 2020, the expert recalls. The fact is that housing and communal services tariffs do not change monthly, like prices in stores, but are set for a certain period. But in general, over the 9 months of 2019 they rose by 5.4% compared to the same period in 2020
The overall increase in consumer prices was 4.8%, according to Rosstat, that is, much less. Therefore, in reality there is no “inflation minus” provision, that is, setting tariffs below the projected level of inflation. The rise in the cost of housing and utility services not only traditionally outpaces inflation, but is one of its main drivers. The increase in tariffs is forced into the general increase in prices of other goods and services. According to Goikhman, the actions of the FAS only slightly slow down the rise in prices for housing and communal services, without which they would grow even faster. Why is this happening? Three main reasons can be identified.
So, explains the analyst, most utility suppliers. Systems for supplying water, gas, electricity, heating, sewerage are technically complex and expensive. There is no way to duplicate them in order to develop competition. The presence of one network operator in this area is indeed objectively justified. But this creates the opportunity for monopoly high prices. In addition, the essence of the services themselves is such that people cannot refuse them; this is a vital area. That is why what is called “low elasticity of demand” in economics works here. This means that when prices rise, the consumer cannot reduce demand. In combination with “natural monopolies,” there is a great temptation for suppliers to raise prices.
Well, and, Goikhman adds, such a situation turns from a general temptation into real practice due to the confusion and closedness of price formation by suppliers. They include coverage of all costs, including completely unreasonable ones, such as loss of resources, abuse of artificially increasing costs, etc. The territorial commissions for regulating tariffs are called upon to combat this. But they operate under the auspices of the local administration. And in the management of operating organizations, as Artemyev puts it, “as a rule... the son of some governor or high-ranking official works.” Therefore, administrative resources make it possible to pass high tariffs through such commissions.
Such a combination of factors almost inevitably leads to inflated prices for housing and communal services, states Goikhman. With the existing system of their formation and isolation, there is no need to talk about tariff inhibition. They are set at the regional level, and there is no interest in reducing prices. This is largely why the official plan for 2020 is not a reduction, but a new increase in housing and communal services tariffs, again at a rate higher than the predicted consumer inflation of 4%. As a result, ordinary residents overpay for housing and communal services or accumulate debt, since real incomes lag behind housing and communal services tariffs.
In general, you need to understand that over the past 5 years, on average, housing and communal services tariffs in Russia have doubled, Pavel Sigal, first vice-president of Opora Rossii, reminded Vek. Tariffs are indexed annually, the population's debt is growing, and the share of worn-out communications is increasing (according to various estimates, 70-80% of utility networks in the country are considered dilapidated). The number of accidents is growing (on average there are 1.8-2.4 accidents per year per 1 km of networks). Citizens' debts for utilities reached 1.5 trillion. rubles (5% of the country's citizens have arrears in paying for housing and communal services). In just 9 months of this year, prices for utilities on average across the country increased by 5.4% compared to the same period last year.
And although the antimonopoly service says that tariffs are calculated on the principle of “minus inflation,” in reality, the increase in the cost of housing and communal services does not outpace inflation, but is one of its causes. The actions of the FAS only restrain the rise in prices for housing and communal services, but nothing more, the expert is sure.
Here you also need to understand what housing and communal services are, says Segal. These are very expensive systems with low elasticity of demand, as discussed above. That is, despite the increase in tariffs, the population is still forced to pay for them, because they cannot refuse either water or heat in the house. What do monopoly companies use? Plus, there is absolute opacity in setting tariffs – where and what comes from. From January 2020, another tariff increase of 4% is expected. But the real incomes of citizens are not growing at such a rate.
This spring, Artemyev said that citizens of our country are overpaying up to 100% of the cost of utilities. This situation has developed, according to him, due to the fact that regional authorities are regulating tariffs without proper control. There will probably be a lot of work here for the Antimonopoly Service.
There are also real examples of reducing utility tariffs in our country. This summer, the authorities of St. Petersburg achieved that the increase in tariffs was reduced by 10 times compared to planned. This was done by optimizing the costs of supplying organizations and reducing sales markups.
Recently, the rules for calculating waste removal have also been changed: income tax and fees for negative impact on the environment have been removed from the basis for calculating the garbage tariff. This will reduce the burden on consumers in the near future. The issue of housing and communal services tariffs is very complex and diverse, says Segal. Problems that have accumulated over years and decades cannot be solved with bright statements alone. But you can promise.
Privileges
Our state supports and helps socially vulnerable citizens and those who deserve it.
Assistance in paying for housing and communal services, one of the main benefits provided by the government.
The second type of similar assistance is subsidies.
A list of citizens to whom the federal and local budget provides benefits for paying for housing and communal services has been established:
- Heroes of the Soviet Union and Russia
- Disabled people, WWII veterans and their close relatives
- Disabled people of all groups
- Disabled children
- Radiation victims at nuclear power plants
- Large and low-income families
Discounts are provided for sewerage, electricity, heating and gas.
Benefits apply to all family members living with the beneficiary in one residential space and amount to 50%. The remaining half is paid by the budget.
The list of works and services is required
Section 3 of the Management Standard provides for the obligation of managers to provide owners with a draft list of services and works for approval by the owners.
Also, in order to confirm the need to provide services and perform work provided for by the draft list of services and work, the management organization, partnership or cooperative, at the request of the owners of premises in an apartment building, are required to submit an inspection report of the technical condition of the apartment building, as well as other documents containing information about the identified defects (malfunctions, damages), and, if necessary, conclusions of expert organizations.
As a result, if the manager has provided you with a calculation without specifying specific work, then we request a draft list of works and services, as well as inspection reports, which will indicate the need to perform certain works, the presence of defects in common property, etc.
The article will be useful: Collection of debt for housing and communal services in a joint manner: why is it beneficial for the manager, what is the essence
Changes in the cost of housing services in Moscow and the region 2020
The main document establishing tariffs in Moscow for housing and communal services is Government Decree No. 848 - PP dated December 13, 2016. (as amended on 04/08/2019).
According to calculations, in Moscow, the growth of payments for utility services will increase, on average, by 53 rubles per person. This includes gas, electricity, water supply. Tariffs for housing and communal services in the capital of Russia are much lower than other large metropolises in the world. But much higher than regional prices.
However, in Moscow more than 2.5 million people benefit from subsidies and benefits for housing and communal services.
In the Moscow region, tariff indexation will increase by approximately 3%.
Tariff "Mosenergosbyt"
The increase in the cost of electricity services in Moscow will occur no earlier than July 1, 2020. According to analysts, the increase is expected from 3 to 3.3%.
With a single tariff, charges will be made at the rate of 3.89 rubles. per kW/h.
The two-tariff size is:
- Daytime – 4.47 rubles. kW/h
- Night time – 1.68 rub. kW/h
Different tariffs are provided for different categories of residents of the capital. Also, when calculating payment, the type of stoves installed in the house (gas or electric equipment) and residence in an urban or rural area are taken into account.
Price per 1 cubic meter gas for the population
Gas price indexation in 2020 for all categories of consumers, including the country’s population, will be 3% annually from 2020 to 2024.
Tariffs for gas supply services until June 30, 2020 are as follows:
If there is no counter:
- If you have a gas stove and central heating – 8.30 rubles. cubic meters
- With a gas stove and gas water heater (no central heating or hot water supply) – 8.30 rubles. cubic meters
Houses with heating from gas heaters - 7.60 rubles. cube m.
Cost of water
Tariffs for drinking water (water supply), sanitation for the population are as follows:
From 01/01/2020 to 06/30/2020:
- Drinking water – 32.22 rub. cubic meters
- Household drainage – 45.53 rubles. cubic meters
- Disposal of surface wastewater – 35.42 rubles. cubic meters
- From 07/01/2020 to 12/31/2020
- Drinking water – 31.55 rubles. cubic meters
- Sewerage – 47.36 rubles. cube m.
- Wastewater – 35.42 rubles. cubic meters
Value added tax is not included in the tariff.
Garbage removal tariffs
Since January 2020, garbage collection is considered a public service. And all benefits apply to her, like everyone else. Garbage fees are now calculated based on the number of residents.
Decisions on tariffs are made by local regional authorities. On average, payments in Russia will increase by 12%. Payments will increase by 30 rubles per person.
When approving new tariffs, managers are required to justify the tariffs
When approving new tariffs, managers must follow the notification procedure with the provision of calculations and economic justification - I wrote about this in an earlier article.
We are talking about tariffs for services and work of managers (for example, the line “housing maintenance”), and not about utility tariffs.
But everything would be fine if the legislator provided for what the calculation and economic justification should look like.
The manager is obliged before the meeting to provide the owners with a calculation (estimate) for the new tariff proposed by the organization 30 days in advance. There are no requirements for the content of the calculation in the law, so in essence it can be a table indicating the type of work and its cost in the proposed tariff.
Whether the manager is obliged to detail the list of works and services is also not directly resolved. But in this case, you should refer to the management standard (Resolution of the Government of the Russian Federation of May 15, 2013 No. 416).
Regional price increases
From January 1, 2020, individual tariff growth indices in the regions amount to 3-3.8% of the cost from 07/01/2019. until December 31, 2019
To understand how much you will have to pay for January 2020, you need to look at the payment slip for December 2020 and add 3% to this amount.
However, the established index for regions is the maximum. Local authorities have the right to increase or decrease the amount of payment for utility services.
The lowest increase index is in the Republic of Adygea, Bashkortostan, the Perm Territory and a number of other regions. Only 41 regions have such a “ceiling”.
Regions in which the increase is usually above average are Moscow, St. Petersburg, Dagestan, Moscow and Tula regions.
For the first time in Moscow, a payment system for heating, water supply and sanitation has been introduced for 5 years at once - until 2024. Indexation will be stable, once a year - July 1.
Another price increase
By tradition, every year on July 1, utility tariffs are indexed. According to government orders, this year they will increase by an average of 4%.
Now the situation is quite extraordinary. Due to the coronavirus pandemic, the incomes of Russians have dropped significantly, which means paying real bills is problematic, but the housing and communal services industry was recognized as the most affected.
Deputies considered the initiative not to raise tariffs at all, but many criticized this decision. The thing is that in this case, service providers will not be able to properly prepare for the new heating season.
The annual increase in utility prices is due to a number of factors:
- Energy prices are increasing;
- The salaries of workers in the housing and communal services sector are increasing;
- There is an increase in fuels, lubricants and construction materials;
- Equipment maintenance prices are rising.
In addition, no one has canceled major repairs of public utility facilities.
The government recommended that regional tariffs for housing and communal services be changed taking into account the income level of the population. At the same time, measures should be developed aimed at improving the quality of customer service and reducing costs.
Graphics courtesy of Komsomolskaya Pravda
