Slower growth in housing and communal services tariffs looks realistic.

11 october 2013 | Finmarket

Experts discussed the long-term policy of restrained indexation of tariffs for gas and electricity, based on the report “Impact of rising prices for gas and electricity on the development of the Russian economy” prepared by the Institute of Energy Studies of RAS.

Leonid Grigoriev
Leonid Grigoriev
Chief Adviser to Head of the Analytical Center

Finmarket quotes Leonid Grigoriev, Chief Adviser to Director General of the Analytical Center for the Government of the Russian Federation, who believes that “slower growth in housing and communal services tariffs looks realistic” given the upcoming 2016 parliamentary elections and presidential elections in 2018. Mr. Grigoriev pointed out the conditions of the “complete uncertainty” in which the analysis is being done: “All models are very credulous: they are based on the fact that all the saved money will be spent on investments.”

According to him, it is not clear why the tariffs should grow while the anticipatory increase in prices will not lead to growth in energy efficiency, investments into the modernization of industries, or purchases of domestic equipment.