SPECIFICS OF INTRODUCING REFERENCE PRICING OF WATER SUPPLY COMPANIES BY TAKING INTO ACCOUNT FOREIGN PRACTICE OF TARIFF REGULATION

Author(s): Agafonov Dmitry Valentinovich, Kuznetsov Vasily Vladimirovich

Rubric: Environmental economics

DOI: 10.21777/2587-554X-2020-2-64-72

Release: 2020-2 (33)

Pages: 64-72

Keywords: yardstick pricing, comparative method, water services, tariff regulation, Germany, Great Britain, foreign regulation experience, water services branch transparency

Annotation: Incentive methods of tariff regulation based on benchmark pricing are being introduced in various natural monopoly infrastructure industries currently in Russia. This determined a significant increase in sales markups in the field of electricity sales because the Russian retail energy market was not ready for innovations. In this regard, the introduction of benchmark pricing in the water supply sector should first of all begin with the organizational preparation of the industry for significant changes. Therefore, the authors investigated the experience of applying incentive regulation in the UK and Germany, as advanced countries with successful reform experience. On its basis, the authors identified the main parameters of the adaptive environment, which create the basis for increasing the efficiency of the introduction of a new method of tariff regulation. First of all, this is the need to increase the operation enterprises transparency due to the conditions created by the regulators for the disclosure of information. In the author’s opinion the creation of a disclosure system should precede the introduction of reference regulation. At the end of the article, the authors identified indicators, the disclosure of which will increase the information content of the water supply sector when introducing a new regulation method.

Bibliography: Agafonov DM.VA., Kuznetsov VA.VL. SPECIFICS OF INTRODUCING REFERENCE PRICING OF WATER SUPPLY COMPANIES BY TAKING INTO ACCOUNT FOREIGN PRACTICE OF TARIFF REGULATION // Economics and Management. – 2020. – № 2 (33). – С. 64-72. doi: 10.21777/2587-554X-2020-2-64-72