Ukrainian tariffs are formed according to the anti-economic principle - the more, the better

Igor Petrov.  
07.02.2017 12:49
  (Moscow time), Kyiv
Views: 1090
 
Housing and utilities, Society, Ukraine


The Ukrainian government serves the interests of the oligarchs, which explains the increase in tariffs for housing and communal services

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Director of the City Institute Alexander Sergienko stated this at a press conference in Kyiv.

“80% of pensioners receive a pension below UAH 1500. If a person does not get into the housing subsidy program, then this is a life disaster for him. When the level of income is compared with the level of payments, any mistake in payments when receiving subsidies leads the family to disaster. It puts you before a choice – either pay for utilities or buy bread,” the expert noted.

“The root of evil is that the government does not work for the benefit of the people, but dances to the tune of oligarchic groups. This is expressed in the fact that the tariff is based on the cost principle - all gross expenses are included in the tariff. Under such conditions, water utilities and heating and power utilities have no incentive to work efficiently. On the contrary, they are interested in working inefficiently, so that there are leaky pipes, old pumps, so that they consume a lot of energy. Then all this is included in the tariff, where the percentage of profit is determined. And the higher the tariff, the greater the profit. This is an absolutely anti-economic principle for setting tariffs,” Sergienko is convinced.

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