Pridnestrovians' profits leaving behind prices and inflation

The comparisons of tariffs of natural monopolies with Russia and neighbouring states is in the favour of the PMR

In 2014 in Pridnestrovie utility tariffs for the population have grown. However, this growth was moderate and has not affected people's solvency.

Tariffs for principal utilities have been raised not since the beginning of the calendar year, i. e. amidst the heating season, but since April 1 when gas consumption significantly decreases.

According to the Price and Antimonopoly Committee, electric power has gone up by 9.62%. One kilowatt per hour within the limit costs 0.57 rubles now, and one cubic metre of gas costs 0.87 rubles, hence having gone up by 0.05 rubles, or 6.1%.

Central heating is provided to Pridnestrovian households by several enterprises, therefore the price varies from one region to another. For example,  heating of a square metre cost 3.54 rubles in Tiraspol last year and more than 4 rubles in Kamenka. However, the average growth of heat tariffs in the Republic has made 9.32%.

Nevertheless, despite this growth Pridnestrovie's utility tariffs are lower than those in the neighbouring states and even in Russia. Thanks to benefits, natural gas is 80% cheaper for the Pridnestrovians than for the Ukrainians or residents of the Krasnodar region, Russia.
Moldova's population pay 7 times more for gas. The same applies to heat tariffs. Thanks to a considerable share of atomic power in the Ukrainian power system, electric power is 0.13 rubles cheaper per kilowatt in Ukraine (as of beginning of the year), but 0.56 rubles more expensive in Kuban, Russia. In Moldova, the price for electric power supplied to the households is 2.5 times (0.74 rubles) as high as in the PMR.

The Pridnestrovian authorities have taken a decision to fix water supply and disposal tariffs at the last year's level.

The state continues to support socially disadvantaged people by granting them 50% or 100% benefits for utility tariffs.

Besides, there are social norms for consuming gas, water and electric power in Pridnestrovie. By the way, the Russian Federation has delayed the introduction of social norms. To a large extent this reflects the fact that many households are not equipped with metering devices.

Some preferences are granted to the citizens by the local authorities. In particular, single pensioners in Tiraspol are granted 50% benefit  for some services provided by municipal enterprises. The number of such persons in the capital is 5,800. In 2014 more than 1.4 million rubles has been budgeted for implementation of the municipal programme.

Besides, subsidies are granted by the municipal budget to poor citizens for paying utility tariffs in case the tariffs exceed a quarter of their family budget.

As was noted by Deputy Chairman of the PMR's Government VitaliyUlitka, the population's solvency is taken into account when forming tariffs.

"We consider the growth in revenues should leave behind the rise in tariffs. We are raising very slowly the gas price to the market level, taking into the account the population's solvency," VitaliyUlitka underscored.

If there has been one raise in utility tariffs this year, pensions and welfare benefits are to be recalculated three times.

Thus, if the average pension had been 1,587 rubles by the end of the last  year, by the end of this year it must reach the amount of 1,703 rubles. The wages will increase due to the rise in the estimated minimum salary level (EMSL). This index is expected to reach 7.5 rubles by December.

Last year the President issued a decree allowing for a considerable  increase in professional allowances. The redistribution level of 70 EMSL has been doubled. Thanks to that, the wages in public sector have risen.

The growth in total revenue is confirmed by the comparison of the last year's rise in wages to the inflation rate. The average monthly wage increased by 11.5% in 2013, whereas the inflation rate hit the lowest level of 3.6%, and tariffs made no more than 1%.

In the current year, the growth in utility tariffs is not expected to greatly affect inflationary processes, according to the experts. Thanks to the decision to fix the tariffs for the first quarter of the year, the inflation rate made only 0.5%. It has been the lowest rate in the past 10 years.