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Utilities tariffs in different countries of the world

This post examines the differences in utility tariffs across different countries around the world. It looks at various factors that influence the price of utilities, covering electricity, water, and gas, and how these tariffs are affected by the country's energy policies. It also highlights the advantages that governments can gain by regulating their utilities prices, such as reducing inflation and increasing investment. Finally, it highlights the importance of ensuring that tariffs are affordable and in line with local economic needs.

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Almost every time, when making a decision to increase tariffs for utilities, the government emphasizes that in Europe, and in other countries of the world, the population pays for water, electricity and heating much more than in our country, hinting that they should not be indignant worth.

It is well known that the local population in the United Arab Emirates does not pay not only for heating (there is simply no need for it), but also for electricity and water. Of course, only 20% of the population of this eight-million-strong state enjoy this privilege, the rest – Indians, Malays, immigrants from African countries and Nepalese who came to earn money – are forced to pay taxes, including rent.

However, residents of other states, for example, Kuwait and Libya, can also boast of freedom from paying for utility bills..

In Mozambique, electricity costs about the same as in our country – about 2.4 rubles per kilowatt, while paying for it in advance – prepayment has become a common practice. That is, the electricity bill is recharged, like a mobile phone bill. Garbage collection services in Mozambique will cost only 15 rubles per month, however, the quality of their implementation leaves much to be desired.

Due to geographical features, comparing the cost of utilities in the southern states and in the vastness of our homeland is a thankless task, it is clear that although electricity costs the residents of these countries, it may be more expensive, in general, the monthly amounts spent on housing and communal services will be much less.

Iceland

It should be noted right away that there are no management companies in Iceland as such. Each house has its own fund, to which residents are required to rent about 11 thousand crowns monthly, which is equivalent to 95 US dollars.

Iceland
Emilio Grossi. Iceland. 1994

If there are problems with heating or water supply, the house manager, who is chosen by the residents themselves, applies to the appropriate commercial organization, paying for repairs from the fund.

From the same fund, which can be compared with our rent for an apartment, funds are also allocated for the salary of a cleaning lady who monitors the cleanliness of the entrance, a janitor and for garbage.

In general, utilities cost Icelanders about $ 200, and the contribution to the house fund is almost half of these monthly expenses. Cable TV is paid separately – about $ 20 and a council tax – about $ 1.5 per square meter of living space. As you can see, gas, water and light will cost a resident of Iceland only $ 70-75.

The small northern country managed to achieve such a comparatively low cost of heating and electricity through the use of heat from geothermal sources and an extremely efficient system of housing and communal services. In addition, residents of Iceland are accustomed to conserving heat and their homes are very energy efficient..

European Union

Of course, in different European countries, the cost of housing and communal services can differ significantly. However, one thing remains in common – residents have the right to choose an organization that supplies electricity, water and heat. For our country, such a situation seems simply impossible, because the Russians simply have no choice. But a resident of London, for example, can choose two electricity suppliers at once – one will supply light during the day, at one rate, which is usually slightly higher, and the second at night. This situation has developed in other European countries as well – consumers have the right to refuse the services of a water supplier if an organization appears offering more favorable tariffs..

European Union
Andre Derain, London Bridge. 1906

Another common European feature: the absence of separate bills for hot water. Each apartment building has its own boiler, which most often runs on electricity, so instead of centralized hot water services, residents simply pay extra for electricity. It is also worth remembering that in the European Union they pay twice for the use of water – directly for the supply of cold water, according to the meter, and for drains. All water supplied to the apartment is automatically considered used. And it doesn’t matter that the inhabitant drank it, decided to keep it in the tank or watered the flowers – you will have to pay for the drains in full.

So, in Germany, the cost of wastewater is about 3.22 euros per cubic meter. But for cold water, on average, residents of the country pay only 69-75 euros per year..

The cost of electricity varies greatly from country to country. In Bulgaria, for example, you will have to pay 0.01 euros for 1 kilowatt of energy, and in Montenegro the tariff changes depending on the time of the day – at night electricity costs 0.06 euros, during the day – 0.08 euros. In Spain, residents also pay 0.08 euros per 1 kilowatt on the meter for consumed electricity, but pay an additional 0.54 euros per month as a monthly fee.

Denmark is the leader in payment for electricity, here you have to pay 0.44 euros for 1 kilowatt, Germany is in second place – 0.42 euros per 1 kilowatt.

The situation with payments for cold water also differs from state to state. In Montenegro, a cubic meter of water will cost a resident 0.54 euros, and in Spain – only 0.16 euros, but you will also have to pay a monthly fee of 6.79 euros per month. By the way, in Spain, all payments are made not monthly, but at once in total amount 1 time per quarter.

It is interesting that in Spain there is practically no centralized gas supply; only modern residential complexes are equipped with it. In other buildings, residents use bottled gas, on average spending only 30-40 euros per year.

As for payments for “blue fuel” in European countries, Sweden is the leader in terms of gas prices, where residents pay 45.5 rubles per cubic meter in terms of Russian rubles. In second place is Denmark, where 1 cubic meter of gas will cost residents 45.2 rubles, and in Italy the cost of “blue fuel” was set at 32.8 rubles per 1 cubic meter..

In general, in Italy, there are quite expensive utilities – residents pay a monthly fee for electricity, regardless of whether the payer lives in an apartment or a house, its amount is 115 euros per year. The water supply costs the average Italian 187 euros annually, and another 103 euros will have to be paid every year for garbage collection. In Italy, the institution of management companies also did not take root, if residents do not want to independently calculate and pay for housing and communal services, they turn to the local real estate agency, which, by the way, can look after the house in the absence of the owners.

It should be noted that in many respects the housing and communal services system in European countries is designed only for the integrity of residents. The meters for each individual apartment are usually installed in a separate room, where representatives of utilities come every month, take readings and calculate the amount of the contribution. And the Europeans then simply pay the bills received, fully trusting the correctness of the charges.

United States of America

Since the United States is a very large country, the cost of tariffs can vary greatly from state to state. For example, in Florida, where there is no need for heating, the largest payment is the electricity bill, which can end up at as much as $ 300 a month. Of course, the reason for such a large amount of payments for light is the massive use of air conditioners in this hot state, as well as the fact that very many suburbs are simply not supplied with gas and kitchen stoves, including.

United States of America
Jorge Perez-Rubio. View Of the Financial District from Murray Hill. 2001

On average, electricity costs Americans $ 0.88 per kilowatt; US residents pay about $ 250 a year for water supply. There are also specific expenses, for example, maintaining the pool behind the house will cost the owner from 50 to 120 dollars per month.

There is no rent in the United States at all, instead a property tax is introduced, which is 13% of the cost of housing and is paid once a year.

Inhabitants of apartment buildings monthly, in addition to payment for electricity and water, another about 60-70 dollars for the services of the management company, which washes the building from the outside and is engaged in cleaning common areas, repairs electrical wiring and other communications. However, the amount of this contribution depends on what class the house belongs to. So, residents of elite apartments can pay up to $ 600-700 per month for utilities, while the management company regularly even washes the asphalt in front of the entrance.

In the USA, fines for late payment of utility bills are very high – a defaulter who has delayed depositing funds for at least 5 days risks further increasing his debt by $ 20-50 for each day of delay. So many Americans prefer that utility bills are automatically deducted from their checking account every month, so as not to forget about their responsibility..

Nearest neighbors

Interestingly, Russians pay more for natural gas than their neighbors. For example, in Turkmenistan, there is no payment for utilities at all, this country is rich in its own minerals, and the level of income of the population is not at all high, so the government preferred to take these costs upon itself..

In Kazakhstan, the payment for 1 cubic meter of gas for the population is 2.1 rubles, and in Ukraine – 3.3 rubles for 1 cubic meter of “blue fuel”.

Ukraine
Kraineva Anastasia. Carpathians. 2011

Ukrainians also pay less for electricity than Russians. If in Kiev the cost of 1 kilowatt of electricity is about 76 kopecks in terms of Russian rubles, then in Moscow it is already 2.66 rubles per kilowatt. In Armenia, the payment for 1 kilowatt of electricity is 1.88 rubles, and in Belarus – only 1.01 rubles per kilowatt. Residents of Kazakhstan have to pay 1.74 rubles per 1 kilowatt of consumed electricity.

By the way, if the Russian capital is already confidently introducing a differentiated payment for consumed electricity depending on the time of day, the people of Kiev know about such a possibility only by hearsay..

But water supply and sanitation is cheaper just in Russia – in general, Russians pay $ 0.72, and Ukrainians – $ 0.85.

If we compare the ratio of utility bills and per capita incomes, it turns out that, on average, Americans and residents of Central and Western Europe give 10% of their income monthly, paying bills for electricity, water, gas, garbage disposal and other necessary services.

Russians and Ukrainians, on average, also give from 10 to 30% of their monthly income to pay for utility services, the situation may vary depending on the average income level in the regions. The residents of the Eastern European states, for example, the Poles and the Baltic states, who, having entered the European Union, are forced to pay utility bills at the level of London residents, were unlucky most of all, but the incomes of the population of these countries are still very far from the average European.

According to experts in the field of housing and communal services, in Russia, before raising tariffs for electricity, water and heating, it is worth thinking about modernizing the entire communal system, since in Europe it is impossible to imagine a situation where about 50% of heat is simply lost on the way from the boiler house to the consumer. At the same time, of course, an ordinary Russian pays for such losses..

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Comments: 1
  1. Penelope Kelly

    How do utilities tariffs vary across different countries worldwide? What factors contribute to the fluctuations in utility prices and how does it impact the overall cost of living for residents?

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