Cleaning Fee Risen the Most for the Last 5 Years

commersant.ge

For the last several years not only the prices on the objects of primary consumption and food have risen but the communal fees as well. According to experts, the year of 2007 was the hardest as the prices of almost all the communal fees rose. However, the year of 2010 was no less hard when the water, cleaning and municipal transportation fees rose almost simultaneously.

Commersant.ge tried to ascertain which communal fee rose the most for the last 5 years.

The research showed that for last 5 years the water fee has increased by twice. First this decision was made in 2007 by the City Hall when the tariff rose from 1.20 to 2.40 GEL. The second increase was observed in 2010 when the tariff rose to 3,15 tetra. Thus the total increase amounted to 155 %.

In the same period the natural oil fee increased by twice. In 2006 the price of 1 square meter increased to 34.20 GEL from 26.66 and in 2007 to 51 tetra. In sum, it rose by 90%.
Electricity fee rose once in 2006. According to the decision of Georgian National Electricity Regulatory Commission, the prices were assorted and increased. If the capital population paid 11.98 tetra for 1 square kilowatts since 2006 according to the consumed electricity, to 17.69 from 13.48, thus the increase amounted to 50%.

In the same period, the cleaning fee rose by twice, from 40 tetra to 1.20 GEL in 2007 and to 2.50 GEL at the end of last year, in sum the 525% increase was noted.

For last 5 years the municipal transportation price increased as well. The first increase was noted in 2007 when the transportation by Metro and “yellow bus” rose to 40 tetra from 29 tetra. The total increase amounted to 150 % in sum.

Thus, the rise of fees by percentage is following:

Cleaning 525%
Water 155%
Municipal transportation 150%
Natural Oil 90%
Electricity 50%

According to some experts, the general 25% of the general income of population is spent on communal fees. The situation is hardened by establishing the common tax system, when, for instance, because of cleaning fee the electricity is ceased.

According to the statement of expert in economics Soso Archvadze, the communal service tariffs need the protection similar to bread price as it is also an item of primary consumption. The increase of price maybe a natural process but the government needs to control how adequately people are protected from such rise of tariffs, he added.