Utility Charges To Increase By 80 Rubles After New Year

Belarusians have to start preparing for a difficult year even today.

Lukashenka brought the issue of raising the utility tariffs at a recent press conference, – he said that the international lenders offered our population to pay "75% of the cost of services today, and 100% – tomorrow," Salidarnasts writes.

– But people wouldn’t be able to pay that, – he said. – And we have agreed: we will add $ 5 each year. Next year, I know it for certain, the utility charges will rise by this amount.

The story continued on November 30, when Deputy Prime Minister Anatol Kalinin announced that the rise in price of housing services will be held in January. According to him, by the end of this year, Belarusians will pay out of pocket 60% of the costs, and by the end of 2017 – 75%.

However, according to the official, there won’t be any new increases of communal charges in the coming year.

Head of the Kosht Urada project Uladzimir Kavalkin, an economist, does not share the vice-premier’s optimism, he recommends Belarusians to start preparing for a difficult year even today.

– As for the next year, it will not be a 75% compensation. At least, judging by the agreements, that were reached during the recent visit of the IMF mission. Then the matrix of joint activities was made up – and it meant a 50% compensation of the costs for the population in 2016, and a 100% compensation – in 2017, – he explains his concerns.

According to the expert, partially the government plans to achieve this figure by saving, reduction of costs associated with heating:

– Such things as the organization of public services and amenities, for example, will be subsidized less, they have stopped harvesting leaves lately. That is, they will be looking for some reserves to increase tariffs not in two times, but in 1.7 times.

Tariff increases in 2017 may be greater than the announced five dollars, the economist says.

– Today, people, who have a one bedroom flat, pay at least 30-40 dollars for housing and communal services. That is, if we assume that the costs are expected to grow in two times, it comes out plus 40 dollars. Maybe it will be 30 or $ 25, but certainly not five. So it is better for Belarusians to get ready for price increase, – Uladzimir Kavalkin says.

Another important factor that will affect the amount of the average utility bill in 2017, is the price of gas.

– The price of gas will directly affect the amount paid by both the population and the Belarusian industry. That is why the Belarusian-Russian negotiations are so tense. If the price is not lowered, the heating season will bring much higher prices, – the expert emphasizes.