Tariff rise restriction frustrates Russian operators

Russian president Vladimir Putin has frustrated private water operators by imposing a 6% limit on water tariff increases this year.

Putin ordered the government to cut back on the annual growth levels after some complaints over huge jumps in water bills last year.

In 2012, tariffs in Russia were allowed to rise by between 10% and 15%. The country’s Federal Tariff Survey is now working on calculations under the new ceiling of 6% for this year. The 6% figure was introduced to keep the rise in water prices in line with inflation.

But Gregory Teryan, chairman of private water operator Russian Communal Systems, criticised the decision, saying that water companies would have to carry out tougher measures on consumers to ensure payment, now their ability to raise prices had been restricted.