Advance payment for utility services benefits utility providers

4 april 2017 | Avtoradio

The initiative proposed by Russian senators to introduce discounts for consumers choosing advanced payment for utility services received a comment by expert with the Analytical Center Dmitry Khomchenko. “Such discount will have to be counterbalanced at the expense of payments on which no discount will be provided”, Avtoradio quoted the expert as saying.

Dmitry Khomchenko
Dmitry Khomchenko
Department for Sectors of Economy

Mr. Khomchenko believes that advance payment for utility services benefits utility providers and is, in principle, quite feasible, except that very few consumers will be able to afford it, and, also, this will require amending the current tariff regulation laws and the procedure for settlement of utility bills. “Figuratively speaking, if today one cubic meter costs 5 rubles, then those consumers who pay 4.50 rubles instead will simply shift the remaining 50 into the burden to be paid by some other consumers. But this is the only way tariff regulation works today, and, therefore, relevant amendments to the procedure for calculation of heat energy and water,” said Mr. Khomchenko in his interview to Avtoradio.