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 National Commission on Housing and Community Amenities Offers New Tariff Calculation Method

The National Commission which regulates the cost of utilities in the state is offering a new method of calculating rates.

Complex economic calculations should improve the quality of services and in the distant future reduce their costs, TSN reports.

The main argument of the commission is the poor quality of services and their high cost. Therefore it proposes to calculate the tariffs in a new way.

The method is called RAB (Russian - slave) and it shall benefit the consumer, experts say. As an example the developers have taken the tariff system of Great Britain. Transition to it shall lead to two stages of increase in the cost of services, and after 5 years their reduction.

"The first profit is guaranteed. Enterprise reduces costs. Second, if the company reduces faster than half of these savings will be left with the consumer. This model is based on the fact that the tariff will be reduced," said the director of development in the public services of the National Commission Dmytro Arlachov.

The idea is supported by Kyiv communal (public) services. They offer to begin with tariff increase.

"We need to raise the tariffs up to their nominal cost. This can be interpreted as a politically incorrect statement but it's true. We can try to live with rate covering 60% of the cost. This leads to deterioration of networks and their failure," said the first Deputy Director of Kyivvodokanal (Kyiv Water Sewerage System) Anna Tsyhanok.

Former Municipal Minister Oleksiy Kucherenko does not believe in the good intentions of the reform authors. He suspects that it is a PR move to simply prepare Ukrainians to banal price increase after the elections.

"This year 16 billion (UAH) from the state budget is allocated for repayment of unprofitable enterprises of heating utilities. After that, neither the IMF nor the economic situation will allow the government to do that and it will will raise the rates," says the former official.

 
 
 
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