Russians were given advice on how to save on utility bills in 2024

In 2024, users of housing and communal services – and this is almost the entire population of Russia – will experience a number of important innovations. The most large-scale is the traditional July increase in tariffs for housing and communal services, by an average of almost 10%. This is the most important, but not the only change that awaits Russian consumers. Residents of the capital will pay for heating differently, bank fees for paying for utilities will be abolished, and electricity will be brought to a certain standard. Popular Front expert, member of the Public Council of the federal project “School of Literate Consumers” Pavel Sklyanchuk spoke in more detail about the new products of the MK housing and communal services system.

Heat will be calculated in a new way

From January 2024, a law comes into force according to which the Moscow authorities, in a pilot mode, will have the authority to set heating tariffs in high-rise buildings according to the new system. It is planned that the innovation will minimize overpayments in conditions of climate fluctuations, when cold winters give way to warm ones. If the experiment is considered successful, a similar payment method may be extended throughout Russia.

Pavel Sklyanchuk comments:

“The advantage of the new introduction of payment for heat tariffs in the capital is that Muscovites will not have to recalculate at the end of the year. Instead of a calendar year, the Unified Heat Supply Organization of Moscow (MOEK) will take a five-year temperature schedule as a basis when setting tariffs. This was done due to the fact that temperatures in the capital have fluctuated greatly in recent years. This winter we can clearly observe this: sometimes closer to zero, sometimes minus twenty. This imbalance in the operation of energy systems is reflected in the tariff. The new law aims to smooth this out. Will the norm be extended to all of Russia? This will become clear after several years of using this method. If such strong climate changes continue in winter, then the innovation may well spread to the country as a whole. At least during the discussion of this bill, such proposals were made in the State Duma and the regions also expressed interest in such a solution.”

Tariffs will be indexed in the summer

From July 2024, utility bills will increase in all regions of Russia. According to the government decree, from the second half of next year the average increase in utility bills will vary depending on the region – from 4% to 15%. The average tariff increase in the country should be 9.8%.

Pavel Sklyanchuk comments:

“According to the approved limits, in 2024 the total increase in citizens’ payments for housing and communal services should be 9.8%. This is a generalized percentage of growth for all types of utility resources. It does not include tariffs and rates for housing services, that is, for the work of management organizations for home maintenance, where there may also be individual indexations depending on the management agreements that were adopted at meetings of homeowners. Sometimes it is specifically stated there that every year there is an increase in the inflation rate. Accordingly, by the end of 2023 it will be around 7.5%. Some management companies will have reason to further increase the cost of their services. But this will no longer be centralized. The increase in payment will depend on the specific apartment building. Meanwhile, the most expensive item is heat supply. Since we have a long winter period, the low energy efficiency of buildings leads to the fact that people pay the most for heat – about 60% of the total receipt. In second place is electricity supply. Again, because of the cold weather, people use electric heating devices. The population spends more time at home, and therefore the stove, TV and other electrical appliances are working. The third most expensive item is water supply.”

Farewell to the commission

From July 2024, banks, payment agents and postal operators will not charge commissions when paying for housing and communal services and penalties for non-payment from citizens who need social support.

Pavel Sklyanchuk comments:

“It is unlikely that the bank commission for paying for housing and communal services is significant. This innovation has more of a meaning of social justice: people already pay significant sums for utilities, and then payment agents take a conventional five kopecks from them. Moreover, it is not only banks that charge commissions. These are also settlement centers, various terminals that are located at train stations, in shopping centers… These are the ones who will suffer the most from the abolition of commissions. But banks, in turn, will probably be able to redistribute the resulting losses by raising the cost of other services. In Russia there is a problem related to interbank transfers. Relatively speaking, when citizens pay under direct agreements with their bank, where they have a current account, to the accounts of a resource supply organization that has an account with another bank. For such operations, the commission is already built into the cost of tariffs. Yes, it is insignificant, but it is still a problem. And people have to pay. The most expensive type of payment for services is through a bank branch where there is an operator, or through a post office. The average commission is up to 3%, and on average 1-1.5%. Meanwhile, in most electronic payment methods or auto-subscriptions, payment is carried out without commission. I think there may be side effects from such an innovation. We need to watch how the law is implemented. Somewhere in the middle of next year we will be able to draw some conclusions.”

Electricity tied to normal

In 2024, a number of regions introduced social standards for electricity consumption for the population. Anything that residents consume in excess of these volumes will be paid by them at higher rates.

Pavel Sklyanchuk comments:

“The regions are adopting this innovation at the suggestion of the Federal Antimonopoly Service (FAS). This is done in order to equalize the difference in tariffs between different categories of consumers, between the population and industry and business. Since we have adopted cross-subsidization: today the entire burden of paying for electricity falls on business, and it, in turn, includes the cost of electricity in the cost of goods and services. Is this enough for heating? As a rule, in regional practices, 90% of the population fell under the established standards. The vast majority of people will not feel any difference. The changes will be noticed only by those residents who were engaged in excessive consumption. For example, those consumers who have large apartments, or those whose homes are overloaded with appliances and household appliances. In general, the new approach is fair in terms of tariffs and pricing. This is a decision from the category of benign social policy. But the norms will most likely have to be adjusted – by how much, time and experience will tell. Still, the standard is still below the economically justified cost of energy. Tariffs are restrained by the state and do not allow natural monopolies to charge them at some exorbitant price. But following such decisions, it is necessary to increase transparency in the field of tariff setting. Regarding the same norm: how it is calculated based on available indicators, what a particular family uses, which device is the most expensive, and so on. Consumers need to understand this.”

Tips for consumers: how to save money on housing and communal services?

Pavel Sklyanchuk:

“People can influence how resources are used. To do this, you need to look at which appliances in the apartment consume the most electricity. For example, if there is a financial opportunity, then you need to change the refrigerator to a new, energy-saving one, which will allow you to save money in the future. To save on water consumption, you can, for example, install a two-phase flush tank or a compact dishwasher, or a modern shower head. I also advise consumers to pay attention to water and electricity meters. A number of budget Chinese device models have calculation errors. They can record a large recalculation that was not actually consumed by citizens. If possible, such devices should be changed.”

Table

Growth of tariffs for housing and communal services in the Russian Federation by year

Year Growth,%

2015 10.1

2016 5.4

2017 4.6

2018 3.7

2019 4.3

2020 3.6

2021 4.0

2022 13.1

2023 0

2024 9.8*

*planned increase

Source: Rosstat, FinExpertiza