State and municipal unitary enterprises in the housing & utilities sector spend big sums for the purposes other than intended

Finding of FAS monitoring show that most costs included in the tariffs of unitary enterprises fall under the “Miscellaneous” item.

The Head of the Department of the Federal Antimonopoly Service (FAS Russia) for Regulating the Housing & Utilities Sector, Alexei Matyukhin, was a speaker at an All-Russian Conference on the Housing & Utilities Sector organized in Novosibirsk.

He focused his presentation on tariff regulation and outlined the efforts in this sector of the economy in the past year.

Alexei Matyukhin said that FAS passed an Order approving a plan for adjusting the relevant normative legal acts.

The representative of the Antimonopoly Service paid special attention to competition advocacy. Alexei Matyukhin discussed the work of the new Expert Council on the housing & utilities sector. “The first meeting took place at the end of June when it was decided to form several Working Groups: on heating supply; on water supply and drainage; on waste treatment; on managing apartment blocks and rendering housing & utilities services”. He continued: “The Working Group on heating supply will meet for the first time on 14 October”.

The FAS representative called upon the Conference participants to submit their candidatures to become the Working Groups members should they be interested.

Alexei Matyukhin also reported that state and municipal unitary enterprises in the housing & utilities sector spend big sums for the purposes other than intended. He concluded: “The monitoring carried out by FAS with regard to tariffs and expenses items, the most costs in the overall tariff of unitary enterprises fall in the “Miscellaneous” item. It once again confirms that the efforts of unitary enterprises on state property management are inefficient”.