Hot lavash

From January 1, the electric power tariff will be increased in South Ossetia for those, who are engaged in their own business. This immediately raises a question – does that imply that the life will become more expensive.

It is said that if dough is kneaded by hand, bread will become particularly tasty. Probably that’s the reason why the “Hot Lavash mini-bakery in the Heroes street, in Tskhinval/i, is so popular. Here the dough is kneaded manually.

Another advantage of this place is that lavash here costs RUB20 (approx. US$0.30), while in other bakeries it is sold at RUB25. However, this price – RUB25 will be soon recalled as a perfect price.

A relevant governmental decree has been already issued. Under this decree, the electric power tariff will be increased to its prime cost amounting to RUB3.81 for budget organizations and commercial enterprises starting from the new year. People in South Ossetia apprehend that this is the beginning of the price growth, in general, first of all for bread.

According to Rita Bestayeva, “Hot Lavash bakery owner, her business consumes gas and she is not going to increase the price for bread next year.

Other businessmen are not that sure.

William Dzagoev, the Minister of Economic Development of South Ossetia, assures that increase of the power tariff is not going to apply to ordinary consumers and the price for them will remain at the same level – RUB2.64 per 1 kW/h.

In his words, the forthcoming price increase is a mandatory measure.

“The government has to subsidy the unitary state-run enterprise – “Energoresurs-South Ossetia (South Ossetia Energy Resources). The volume of annual emergency allocations totals over RUB100 million (approx. US$1.5 million) that is a heavy burden for the budget, says Dzagoev.

It is noteworthy that fewer people in Tskhinval/i believe that increase in the power tariff is not going to affect ordinary consumers.

Here are the comments in the social networks:

“Finally, the increase in tariffs will make business to increase prices for their products. As a result, consumers – that is the entire population of the Republic of South Ossetia will be at a loss. Another option is to close one’s business. That is the economic benefit.