BASIC ASSETS OF MODERNIZATION PROBLEMS OF RUSSIAN WATER ORGANIZATION INCURRENT TARIFF SETTING RULES

Abstract

Water supply is a socially significant infrastructure sector that is subject to state regulation of tariffs. Its goal is to simultaneously ensure the interests of consumers (quality and price) and development of industry. Analysis of statistical data from 2010 to 2018 showed that current system of tariff regulation does not ensure the achievement of these goals. There is no significant improvement in technical condition of water supply network. Based on the results of 2018 the replaced water supply networks share in total volume in Russia was 1,1 % (recommended standard is 4 %), and the net loss of water supply companies was 11,75 billion rubles. In addition, the population's specific expenditures on water supply services increased from 1,3 % in 2000 to 3,5 % in 2018. The short-term decline in economic activity caused by the COVID-19 pandemic highlighted the persistence of water supply problems. Therefore, the authors propose to introduce a reference method of regulation and increase the maximum possible time for setting tariffs, which will increase the efficiency of the industry.