Development of an Effective Method of Tariff Formation for Rural Areas: The Case of Russian Federation

Abstract

The conducted researches have shown that the features of the housing and communal sector do not allow talking about the possibility of calculating the “optimal” tariff rate. Also in the current conditions in Russia, tariff methods that are successfully used abroad (for example, the method of reinvested capital) cannot be used. The correct approach to housing and communal tariff formation is the calculation of compromise tariffs, the size of which takes into account the interests of consumers of services, resource-supply organizations, public authorities and investors. Development of an effective method of tariff formation for rural areas is particularly acute. The correct approach to housing and communal tariff formation is the calculation of compromise tariffs, the size of which takes into account the interests of services’ consumers, resource-supply organizations, public authorities and investors. Compromise approach for tariffs’ formation can also become an effective instrument not only in Russia: it can be applied in countries where it is sufficient to calculate housing and communal services’ social demand and its budget coverage (e.g. because of the increasing number of migrants).