Collection of Payments of the Population for Rendered Housing and Communal Services

In the sphere of collection of payments of the population for rendered housing and communal services one can distinguish among a number of product groups:

services associated with calculating and taking stock of amounts to be paid by the population (hereinafter referred to as “market of calculating payments”);

services associated with accepting payments from the population and transferring them to housing and operation organizations or enterprises being suppliers of communal services (hereinafter referred to as “market of accepting payments);

services associated with redistributing amounts of payments among housing enterprises and enterprises rendering communal services (hereinafter referred to as “market of redistributing payments”).

Taking into account the fact that the mentioned services are rendered exclusively at the places of residence of the population, one can state that the relevant markets belong to regional ones and their geographical limits include the territory of the relevant populated areas.

Market of calculating payments, whose geographical limits are narrowed to the territory of location of such houses and their adjoining territories that fall under the sphere of service rendered by the relevant housing and operation organization, are the exception. The mentioned organizations, as a rule, occupy monopoly position on those markets, their market share being equal to 100%.

The significant restriction of competition on the markets of calculating, accepting and redistributing payments in some regions resulted in a high level of reimbursement, by the population, of outlay made by economic entities for the mentioned activities in the total amount of payments for housing and communal services (for example, 10% in the city of Kyiv and 4.3% in the Zhytomyr region).

Introduction of several forms of settling with consumers, housing organizations and enterprises being suppliers of housing and communal services took place simultaneously with the liberalization of the market of accepting payments from the population.

The other form of settling with the population provides for that functions associated with calculating payments and redistributing amounts paid by the population should be given to the information and computing organization being the sole one in a certain territory or to a banking office equipped with computers.

At the same time, the mechanism of settling can be improved due to competition principles of choosing economic entities to calculate and register payments as well as to redistribute amounts paid by the population. The markets of those services are potentially competitive because in the regions there are such economic entities that have a material basis, specialists and experience in the sphere of activities of that sort.

Ex. 1. Read and translate the text.

Ex. 2. Answer the questions:

1. What are the product groups in the sphere of collection of payments of the population for rendered housing and communal services?

2. Why do the markets of calculating payments occupy monopoly position?

3. What did the restriction of competition on the markets of calculating, accepting and redistributing payments in some regions result in?

4. What are two forms of settling matters with consumers?

5. How can the mechanism of settling be improved?

Ex. 3. Read the following false statements and correct them:

1. There is no monopoly for the organizations connected with the markets of calculating payments, whose geographical limits are narrowed to the territory of location and their adjoining territories.

2. The significant restriction of competition on the markets of calculating, accepting and redistributing payments in some regions resulted in a low level of reimbursement.

3. Introduction of several forms of settling with consumers, housing organizations and enterprises, being the suppliers of housing and communial services took place too late for the liberazation of the market of accepting payments from the population.

4. There has never been any form of introduction of settling with consumers.

5. On the whole the market of collection of payments of the population for rendered housing and communal services is oligopolic.

6. Some markets of those services have no competition at all.

Ex. 4. Translate into Ukrainian:

The fact that expenses associated with collecting and transferring payments are included into tariffs for housing and communal services rendered to the population is another essential barrier to development of competition on the market of accepting payments. The banking offices for accepting payments are defined by enterprises of housing and communal economy and not by the population. The mentioned provision leads to narrowing the possibilities for the population to choose such a servicing bank that could supply services to consumers at a lower commission.

Thus the formation of competitive environment in the sphere of collecting payments of the population for rendered housing and communal services is characterized by broadening possibilities for choosing forms and conditions of settling. Further development of competition on the relevant markets will be possible due to:

removal of barriers to the entry of commercial banks into the markets of accepting payments; elaboration of transparent and economic schemes for accumulation and redistribution of finances paid by the population; introduction of competition principles of choosing operators of such systems and banks that render services to them; implementation of competition principles of choosing economic entities that render services associated with exploitation of housing resources.

UNIT 34