01 of July. Utility rates in Russia today are raised. The national average prices for electricity, heat, water and gas will grow by 4.2 %. In each region the level of indexation of tariffs for utilities is different.
The Federal tariff service (FTS) said that "this year, the tariffs are set with reduction factor of 30% below the inflation rate for 2013. Over the past decade, the lowest growth. The level of indexation in each region are different. Local authorities can go beyond the Federal government approved framework".
Tariffs in the regions
In materials of the Federal tariff service stated that the fastest growth of tariffs for water noted in Khakassia – by 9.9%. The lowest growth was recorded in St. Petersburg – tariffs will rise by 2.5%. The average growth of tariffs for heat and gas in the country will amount to 4.2%.
Electricity tariffs the national average will rise by 4% (maximum in Buryatia – 4.3 per cent).
Are maximums, by the Federal government, however, municipalities can go beyond these frameworks in consultation with local MPs.
Moscow city hall has postponed the tariff increase on 1 November is the month the Moscow city Duma elections. Then the gas tariffs for the population will rise by 4.2%, water tariffs by 8%, electricity – by 4.2%, the heat – 9.5%.
Until 2012, the tariffs for utilities were raised from 1 January. Then the government decided to postpone the indexation of tariffs for six months. This solution was positioned as an attempt to limit inflation. In addition to these measures, the government decided to leave the tariffs for gas and light for the industry at the end of 2013.
Maxim Oreshkin (head of the Department long-term strategic planning of the Ministry of Finance) previously said that "these measures will be able to withdraw about 0.6% points from the annual inflation rate in July".
However, Natalia Orlova (the head of the center for macroeconomic analysis of Alfa – Bank) reported that much influence on inflation data decision is unlikely to have. "The effect of these events was completely offset by the devaluation of the ruble".
Natalia Orlova reminded that the former involved reducing inflation because of the government's decisions in respect of tariffs 1-1. 5% on the basis of these expectations, the Ministry of economic development forecast inflation in 2014 at 4.5-5.5 per cent. However, since the beginning of the year the ruble has fallen in value against the dollar by 12.6%.
Dmitry Polevoy (ING chief economist in Russia and CIS) more optimistic Outlook on the situation. He believes that the increase of tariffs in 2014 will have a softening effect on inflation. "Is expected to peak in July and then there will be a slowdown to 6.3% at the end of the year."
In 2015-2017, the government decided to abandon the earlier decision of providing people with discounts at 0.7% inflation. This means that the tariffs for the population will grow in the years by 6.5 and 4.5%, respectively.
