Reshetnikov: the rate of indexation of housing and communal services tariffs in Russia significantly lags behind inflation
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The rate of indexation of housing and communal services tariffs in Russia significantly lags behind inflation, and we can say that the industry is not receiving enough resources. This was stated by the country’s Minister of Economic Development Maxim Reshetnikov during the government hour in the State Duma, broadcast which was conducted on the State Duma website.
The minister noted that over the past five years, housing and communal services tariffs have increased by a total of 28%, while accumulated inflation was 41%, and the growth in household incomes was 50%. In addition, the number of households receiving subsidies for housing and communal services decreased only from 2021 to 2022 by 600,000 or 18%.
“This suggests that our rate of indexation of housing and communal services tariffs is quite significantly behind inflation. And we can rather say that housing and communal services as an industry is not receiving enough resources than that we are refinancing it,” Reshetnikov said.
The industry employs 1.5 million people, the population, the public sector and the economy as a whole depend on it, so it is important that it receives the resources necessary for development, he added. Many regions set tariffs below the maximum level approved at the federal level.
“We stand for building a cost-effective model in housing and communal services. This model cannot be divorced from the consumer and control,” he concluded.
Earlier in April, Russian President Vladimir Putin announced a postponement of the increase in housing and communal services tariffs from January 1, 2024 to July 1 of the same year. In 2022, nominal wages did not have time to grow at the same pace as inflation, which reached 17%, Putin noted then. This decision allowed the regions not to index tariffs for more than a year and a half.
In its macroeconomic forecast, the Ministry of Energy expects that the total payment of Russians for housing and communal services will increase by 9.8% from July next year.
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