Belarus moving to market pricing in public utilities sector

Belarus moving to market pricing in public utilities sector

Tariffs for housing and communal services in Belarus will be indexed in September and in December. On August 17, such information was announced in the Council of the Republic which discussed the development of housing and communal services.

Belarusians will also be encouraged to install individual heat meters. Experts analyzed the situation and came to the conclusion that it is necessary to take additional measures to involve citizens in thermal modernization and to the economical use of heat energy. An appropriate bill is being drafted. The document provides for both a system of state support and the involvement of citizens' funds, because 94% of the housing stock is privately owned.

Иван Вежновец, заместитель министра антимонопольного регулирования и торговли Республики Беларусь

Ivan Vezhnovets, Deputy Minister of Antimonopoly Regulation and Trade of the Republic of Belarus:
Consumers from September 1 of this year will pay 8% more for utilities. Once again I will draw your attention that this indexation is caused by the growth of incomes of the population, as it is envisaged by the current legislation and the practice that has been formed for several years already. From December 1, again based on the growth of salaries, we plan to index the price by further 10%. The tariffs for the population will also increase accordingly.

From January 2018 Belarusians will pay 100% of the cost of all public utilities, except for thermal energy. This is the most significant expense item for consumers. A few years ago, Belarusians paid only about 30-50%, while the rest of money was raised from enterprises thanks to high utilities costs, which is called cross-subsidizing.