ASSESSMENT OF MODERN APPROACHES IMPACT TO THE TARIFF POLICY FORMATION ON THE DEFAULT ELECTRICITY SUPPLIERS FINANCIAL AND ECONOMIC ACTIVITIES IN RF

Author(s): Agafonov D.V., Mozgovaya O.O.

Rubric: Economy

DOI: 10.21777/2587-554X-2022-2-15-25

Release: 2022-2 (41)

Pages: 15-25

Keywords: default electricity supplier, tariff regulation, yardstick regulation, fee policy, pricing

Annotation: The main principle of the state tariff policy is to ensure a satisfaction balance of the economic interests of all electricity market participants. On the one hand, the sustainable financial condition of default electricity suppliers should be ensured. On the other hand, the retail markups growth of default electricity suppliers should not exceed the target parameters of socio-economic development set by state institutions, especially in terms of controlling inflationary processes within the target level. One of the ways to achieve a balance of interests was yardstick regulation methods. In 2018, the FAS Russia introduced a benchmarking comparative method to impose setting default electricity suppliers retail markups (one of the types of reference regulation). Evaluation of the first results of the implementation of this method was the aim of this article. As part of the assessment, the authors examined existing scientific experience. The result of this study was the identified lack of research on the impact of the new pricing model on participants, primarily retail electricity markets. The authors set the task of comprehensively assessing the results of the initial stage of applying the yardstick pricing principles in relation to the default electricity suppliers activities regulation. As part of this work, the authors analyzed the impact of the introduction of yardstick regulation on the default electricity suppliers operating results, the financial condition of this electricity sector, and the pay level in the electricity markets. The authors also identified the main yardstick regulation application problems in relation to default electricity suppliers and suggested ways to solve them. These conclusions can become the basis for refining the benchmarking comparative method of default electricity suppliers and for testing new regulatory rules when expanding the method to new areas of regulation.

Bibliography: Agafonov D.V., Mozgovaya O.O. ASSESSMENT OF MODERN APPROACHES IMPACT TO THE TARIFF POLICY FORMATION ON THE DEFAULT ELECTRICITY SUPPLIERS FINANCIAL AND ECONOMIC ACTIVITIES IN RF // Economics and Management. – 2022. – № 2 (41). – С. 15-25. doi: 10.21777/2587-554X-2022-2-15-25