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TITLE:

COMPROMISE BETWEEN PRICE AND TARIFF SETTING AS THE BASIS TO DEVELOP THE RURAL HOUSING SERVICES

AUTHORS:

Daria Zamotajlova, Elena Popova, Jannet Tambieva, Madina Erkenova

ABSTRACT:

The method of tariff formation in housing and communal services for a long time remained one of the most serious problems of the industry in Russia especially in rural areas. The traditional method of tariffs’ calculation for housing and communal services provided to the population and enterprises, the so-called “cost plus” approach was applied. Its meaning lies in a simple summation of the cost price of a service with a premium that was set directly by a particular housing and communal enterprise within the maximum and minimum values. The analysis of this approach made it possible to draw a conclusion about its nonoptimality. It also became obvious that it is necessary to develop an integrated methodology for tariff formation in the housing and communal services. Such methodology should make it possible to increase the investment attractiveness of the industry, take into account all the features of its functioning and help to achieve the optimal amount of tariffs for all participants in housing and communal services relations. All these factors can be taken into account using compromise approach for price and tariffs formation. Key words: housing and communal service, tariff formation, compromise prices and tariffs, social demand, rural areas.

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