CROSS-SUBSIDIZATION IN TARIFF DESIGN FOR ELECTRICITY

2020 ◽  
Vol 3 (7) ◽  
pp. 30-39
Author(s):  
S. Ya. CHERNAVSKII ◽  
◽  
N. R. KHACHATURYAN ◽  
Z. N. TSVETAEVA ◽  
◽  
...  
Keyword(s):  
Decision Making ◽  
Electric Power ◽  
Electric Power Industry ◽  
Power Industry ◽  
The Public ◽  
Negative Side ◽  
Positive Side ◽  
Cross Subsidization ◽  
Electricity Tariff

The article highlights one of the unsolved problems of the Russian power industry management. In most of the works, cross-subsidization in the electric power industry is considered in negative connotations. It is shown that in the design of the electricity tariff with cross-subsidization, along with the negative side, there is also a positive side. The article presents views on the problem of people who are active in decision-making, but pas-sive in the public scientific space.

scholarly journals Cross-subsidization in the Electric Power Industry: Current State and Problem-solving Vectors

2021 ◽  
Vol 15 (3) ◽  
pp. 17-30
Author(s):  
Dmitry A. Vasilyev ◽  
Keyword(s):  
Electric Power ◽  
Electric Power Industry ◽  
Well Being ◽  
Power Industry ◽  
State Regulation ◽  
Negative Consequences ◽  
Analysis Method ◽  
Stage Of Development ◽  
Power Complex ◽  
Cross Subsidization

As scientific community as businessmen discuss the problem of cross-subsidization in the electric power industry. This problem has long remained relevant. The main topic of economic discussions is fairness and validity of the rules for the tariff formation in the electric power industry. The different tariffs allow reducing the financial burden of some consumers and shifting it to others. The aim of the issue is to develop the main vectors of solving problems and government regulation measures. They are expected to level the negative economic effects of cross-subsidization. The purpose of the study is revealed through solving the following problems: a) to determine the socio-economic nature of cross-subsidization and regulatory problems at the current stage of development; b) to study the experience of foreign countries in cross-subsidization policies; review public policy mechanisms related to cross-subsidization. The subject of the issue is economic relations between different economic participants and their interests arising in the process of cross-subsidization policy. The results of the issue are the development of the main directions of the transformation of the state regulation of the energy complex in terms of reducing the negative effects of cross-subsidies. The scope of application of the obtained results is determined by the possibilities of developing and implementing a balanced state policy that takes into account the interests of all participants in economic processes, eliminating the creation of social tension in society that supports the growth of the well-being of the population. The following general scientific and special methods were chosen as scientific tools for conducting this study: content analysis method, system analysis method, retrospective analysis method, statistical survey methods. The information base of the study was the analytical development of the materials of the Federal Antimonopoly Service, the Federal State Statistics Service, regulatory acts of the Russian Federation governing the development of the electric power complex. The basis of the presented study was the basic definitions of cross-subsidies, methods of reducing the negative consequences of cross-subsidies, principles and approaches of state regulation of the electric power complex.

scholarly journals Understanding the Performance of the Electric Power Industry in China

2012 ◽  
Vol 11 (2) ◽  
pp. 62-92 ◽  
Author(s):  
Guy Liu ◽  
Liang Zhang
Keyword(s):  
Electric Power ◽  
Electric Power Industry ◽  
Power Industry ◽  
End Users ◽  
Electricity Sector ◽  
Electricity Supply ◽  
The West ◽  
The Public ◽  
The Impact ◽  
Current Plan

Despite three decades of reform, China's electricity sector is still organized by a “new reformed plan” where capacity investment has been liberalized but prices and production remain controlled. This paper examines the impact of the current plan prices on end-users with reference to the OECD and how the plan price of electricity supply is formed. We argue that the plan price is set in an attempt to balance the interests of the public and the power industry. We find that China's industries do not pay a cheaper price for electricity than the West, and the plan price is formed through bargain between the firm and the state, which allows the firm to have a soft price constraint on its costs.

The Public Policy of Developing Electric Power Industry in the Far East in the 1950s – mid 1960s: Conditions and Features of Realization

2021 ◽  
Vol 20 (8) ◽  
pp. 73-86
Author(s):  
Aleksey V. Maklyukov
Keyword(s):  
Public Policy ◽  
Electric Power ◽  
Thermal Power ◽  
Far East ◽  
Electric Power Industry ◽  
Power Industry ◽  
Soviet Government ◽  
The Public ◽  
The Far East ◽  
The 1950S

The article examines the merits and demerits of the policy of Soviet government in the field of regional electric power industry, in particular the energy projects in the Far East region. It aims to analyze the conditions and features of the implementation of the public policy of the USSR intended to develop the electric power industry of the Far East in the 1950s – mid-1960s; to identify the main trends and contradictions in interaction between central and local authorities dedicated to regional electrification. The research is based on the traditional historical methods, as well as on the state-centered and regional approaches. It is shown that the electric power industry in the Far East has been developing in conditions of limited resources and lack of mutual understanding between the center and the region in solving towards the problems of the industry. The public policy for the development of the Far Eastern electric power industry was based on the idea of a quick and cheaper construction of thermal power plants. The author comes to the conclusion that this policy led to various consequences, including technical lag in the electric power industry and the pace of electrification, an increase in the shortage of electricity and, in general, a slowdown in the socio-economic development of the region.

scholarly journals The cross subsidization in the electric power industry. What is the limit of growth?

2018 ◽  
pp. 16-20 ◽  
Author(s):  
I. A. Dolmatov ◽  
I, Yu. Zolotova
Keyword(s):  
Electric Power ◽  
Electric Energy ◽  
Electric Power Industry ◽  
Power Industry ◽  
Target Model ◽  
Energy Pricing ◽  
Social And Economic Development ◽  
The Cross ◽  
And Performance ◽  
Cross Subsidization

One of the key pressing challenge the Russian electric power industry faces today in its development and performance is the problem of the cross subsidization between consumer groups. The volume of the cross subsidization in Russia has increased 4 times for 15 years. The conditionally acceptable level of the cross subsidization is estimated based on the additional tariff burden on industrial consumers associated with the implementation of the cross subsidization mechanism. In order to reduce the cross subsidization, it is recommended to increase electricity tariffs for the house-holders by 6% annually. At the transition stage to the target model should be based on the marginal tariff burden on industrial consumers; retail electricity prices for similar consumers in Europe can serve as a “standard” for such a limit (a possible increase in electricity tariffs for industrial consumers on average in Russia is 1.4 times the level of 2016). Options for reducing the cross subsidization and recommendations on how to determine the appropriate volumes are proposed, that is important in the current conditions of the absence of a single adopted methodology for assessing both the value of cross-subsidization and economically justified tariffs.The mechanism of the cross subsidization in the target model of electric energy pricing should be completely excluded, for which the indicator “growth of regulated (final) tariffs for the population” should be included in the forecast of social and economic development of Russia (return to the existing practice until 2017), providing for faster growth rates compared to other consumers.

Improving the integrated reporting of electric-power industry companies

2020 ◽  
Vol 23 (8) ◽  
pp. 922-939
Author(s):  
N.V. Malinovskaya ◽  
M.D. Malinovskii
Keyword(s):  
Comparative Analysis ◽  
Electric Power ◽  
Electric Power Industry ◽  
Power Industry ◽  
Integrated Reporting ◽  
Strategic Objectives ◽  
Methods Of Analysis ◽  
Analysis And Synthesis ◽  
Guiding Principles

Subject. This article deals with the issues relating to improving integrated reporting in terms of dovetailing strategic objectives with capital changes. Objectives. The article aims to develop a system of indicators for disclosure of capital types in integrated reporting of electricity generating companies, as well as recommendations aimed at implementing the fundamental concepts and guiding principles of integrated reporting. Methods. For the study, we used the methods of analysis and synthesis, comparison, generalization, and abstraction. As a case study, we conduct a comparative analysis of the disclosure of six types of capital by the largest electricity generating companies, namely PAO Inter RAO, AO Rosenergoatom and PAO RusHydro. Results. The article formulates proposals for disclosure of capital information to address such a lack of accountability as a contradiction to the principle of coherence. It proposes a system of indicators (core and additional) for disclosure of six types of capital by electricity generating companies. Conclusions. A significant reporting problem is the lack of correlation between key strategic objectives and capital changes. The formulated recommendations for disclosure of capital information can help solve this problem, and increase the attractiveness of the integrated report for capital providers.

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