How Can Public Utility Charges Be Cut?

Yaroslav ZHALILO, President, Center for Anti-Crisis Studies:

“Firstly, by utilizing housing and public utility assets more effectively. This requires a large-scale investment in, say, heating supply mainlines. Secondly, by demonopolizing and strengthening governmental control of the utilities. But, on the other hand, the general rise of prices for fuel and electricity, as well as wage hikes for public utility workers, will contribute to higher charges. What can also lead to higher charges is the commercialization of this sector: the number of new buildings is on the rise, as is the demand for housing and public utilities. This cuts both ways. Even if we demonopolize the sector, there may emerge some commercial factor which will boost up the prices. So I do not think the President has a good reason to make such a statement. And as it is hardly possible to administratively adjust prices in the current conditions, I do not think charges can be cut down. As to the rises, I think we can maintain a certain limit. Kyiv had managed for some time to restrain the charges through an administrative effort, but then they still went up.”