PROSPECTS FOR IMPROVING THE RUSSIAN STATE WATER SERVICES TARIFF POLICY

Author(s): Agafonov D.V., Fayn B.I., Mozgovaya O.O.

Rubric: Environmental economics

DOI: 10.21777/2587-554X-2021-2-42-52

Release: 2021-2 (37)

Pages: 42-52

Keywords: water services, tariff regulation, incentive methods, tariff policy, price setting

Annotation: The state regulation of tariffs is effected in the water supply industry. Its goal is in equal measure ensure the interests of consumers (quality and price) and the development of the industry. Statistical data from 2010 to 2018 indicate that goals have not been achieved: there is no significant improvement in the technical condition of the water supply network, the annual share of replaced water supply networks in their total volume in Russia is 1.1 % (the recommended standard is 4 %), and the net loss of water supply companies is 11.75 billion rubles. First of all, this situation is determined by the used regulation methods. In the same time the health and well-being of about 120 million Russian people directly depends on the stable functioning of the water supply sector. In this regard, the authors are considering the possibility of introducing yardstick pricing for water supply services. It is based on mechanisms to stimulate operating and investment activities. This will increase the water service industry efficiency. However, at present, in the Russian context, the introduction of yardstick pricing is impossible. This is based on a comparison of Russian and foreign practice. At the same time, the yardstick regulation introduction is necessary. Therefore, based on the analysis and synthesis of data, the authors identified avenue of approach to change the Russian water supply organizations data harvesting to ensure the possibility of introducing yardstick methods. In particular, the article defines the need to amend the regulations and the composition of the disclosed indicators, the use of the FSIS EIAS system as a platform for disclosure. In conclusion, the authors recommended revising the financing of investment programs of water supply organizations separately from their operating costs.

Bibliography: Agafonov D.V., Fayn B.I., Mozgovaya O.O. PROSPECTS FOR IMPROVING THE RUSSIAN STATE WATER SERVICES TARIFF POLICY // Economics and Management. – 2021. – № 2 (37). – С. 42-52. doi: 10.21777/2587-554X-2021-2-42-52