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Study: payment for utility services in Russian cities will increase to 7%

The residents of the largest cities of Russia from July 1 will start paying housing and utilities up to 7% more, according to the Institute of natural monopolies research (IPEM).

Tariffs for housing and communal services in Russia are indexed annually on 1 July. The exception was the 2019 rates are indexed twice with 1 January and 1 July in connection with the VAT rise. The weighted average rate for utilities in 2020 is indexed by 4.11%, which was the minimum since the beginning of the application of modern model of indexation in 2015.

As noted by the Institute of natural monopolies, due to moderate growth rates is expected to decline in the share of expenditures on HCS in household budgets. Among the considered 15 cities charge for utility services the maximum will remain at 13% of household income, with 14 of the 15 cities, the proportion will decline in relation to last year.

"The positive aspects of the tariff campaign 2020 will limit the financial burden on the population of Russia in the conditions of the current economic crisis. However, the current system of indexes of fees for municipal services requires adjustments," – said the Deputy General Director Institute of natural monopolies Alexander Grigoriev.