Politics · Russia · 2 hrs ago

Russia considers utility tariff surcharges to fund infrastructure upgrades

Russia considers utility tariff surcharges to fund infrastructure upgrades

Russia’s Construction Ministry is considering extra charges on heating, water and wastewater bills to fund repairs and upgrades to utility networks and boiler plants.

The ministry is preparing its proposal with other government agencies and may submit it to the government by December.

Officials say the money would be used only for repairing and modernising infrastructure.

Current tariffs often cover day-to-day operation but not the full replacement of ageing pipes and equipment.

Lawmaker Svetlana Razvorotneva warns that higher charges alone will not fix the system if companies are not required to show how they spend the money.

She says a draft law on water services would link continued tariff approval to progress against published targets, but it has passed only its first reading.

The proposed approach may also be extended to heating, while the government’s proposal is still being prepared.

3 sources

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What people are saying

Fedor KozlovDeputy director of the Construction Ministry’s housing and utilities development department
The source says the ministry described the increase as «небольшой» (small).
via Эксперт
Svetlana RazvorotnevaFirst deputy chair of the State Duma Committee on Construction and Housing and Utilities
If an enterprise received money for modernization, it should report annually on achieving targets.
via ВФокусе Mail
Vladimir PutinPresident of Russia
Utility tariffs must be economically justified and commensurate with people’s real incomes.
via Эксперт