Kyiv City Increases Tariffs by Noncompetitive Means
OREANDA-NEWS. On November 17, 2008 The Antimonopoly Committee of Ukraine brought an action on the basis of noncompetitive actions from the part of the Kyiv City State Administration. This was resulted from the adopted orders №№1487, 1488 and 1489 by city authorities concerning essential increase of communal tariffs for legal entities without proper economic basing beginning December 1, 2008.
As the Committee cleared up on the results of hearings held on November 17, 2008 the KCSA had applied a formal approach to the increase of heat energy, water supply and drainage system tariffs.
For example, separate entities among which supermarkets and business centers, banking institutions and mobile operators should pay for heating tenfold more: from UAH 219.72 to UAH 2197.2. Some companies have to pay given tariffs for budget institutions for water supply and drainage system.
The facts occurred in KCSA orders when enterprises had to pay threefold and even fivefold more than their competitors.
“Applied by Kyiv authorities approach poses some incorrect condition for the mentioned enterprises and can result in disfigure of competitiveness what the Antimonopoly Committee will allow on no account. But my prime interest, above all, is that businessmen arguments during the hearings have clearly testified that increase in communal tariffs will be shifted on goods and services for citizens. Such neglect of the interests of Kyivans, I and other members of the Committee won’t allow,” acting Head of the Committee Oleksandr Melnychenko commented upon the adopted decision.
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