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

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 lev...

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Autores principales:	I. A. Dolmatov, I, Yu. Zolotova
Formato:	article
Lenguaje:	RU
Publicado:	Real Economics Publishing House 2018
Materias:	electric power industry cross subsidization electricity tariffs for the population electricity prices for industry forecast Risk in industry. Risk management HD61
Acceso en línea:	https://doaj.org/article/93790d5b83314a4ab49b5a6942ddaa05
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spelling	oai:doaj.org-article:93790d5b83314a4ab49b5a6942ddaa052021-11-19T10:42:00ZThe cross subsidization in the electric power industry. What is the limit of growth?2618-947X2618-998410.17747/2078-8886-2018-2-16-20https://doaj.org/article/93790d5b83314a4ab49b5a6942ddaa052018-07-01T00:00:00Zhttps://www.jsdrm.ru/jour/article/view/767https://doaj.org/toc/2618-947Xhttps://doaj.org/toc/2618-9984One 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.I. A. DolmatovI, Yu. ZolotovaReal Economics Publishing House articleelectric power industrycross subsidizationelectricity tariffs for the populationelectricity prices for industryforecastRisk in industry. Risk managementHD61RU Strategičeskie Rešeniâ i Risk-Menedžment, Vol 0, Iss 2, Pp 16-20 (2018)
institution	DOAJ
collection	DOAJ
language	RU
topic	electric power industry cross subsidization electricity tariffs for the population electricity prices for industry forecast Risk in industry. Risk management HD61
spellingShingle	electric power industry cross subsidization electricity tariffs for the population electricity prices for industry forecast Risk in industry. Risk management HD61 I. A. Dolmatov I, Yu. Zolotova The cross subsidization in the electric power industry. What is the limit of growth?
description	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.
format	article
author	I. A. Dolmatov I, Yu. Zolotova
author_facet	I. A. Dolmatov I, Yu. Zolotova
author_sort	I. A. Dolmatov
title	The cross subsidization in the electric power industry. What is the limit of growth?
title_short	The cross subsidization in the electric power industry. What is the limit of growth?
title_full	The cross subsidization in the electric power industry. What is the limit of growth?
title_fullStr	The cross subsidization in the electric power industry. What is the limit of growth?
title_full_unstemmed	The cross subsidization in the electric power industry. What is the limit of growth?
title_sort	cross subsidization in the electric power industry. what is the limit of growth?
publisher	Real Economics Publishing House
publishDate	2018
url	https://doaj.org/article/93790d5b83314a4ab49b5a6942ddaa05
work_keys_str_mv	AT iadolmatov thecrosssubsidizationintheelectricpowerindustrywhatisthelimitofgrowth AT iyuzolotova thecrosssubsidizationintheelectricpowerindustrywhatisthelimitofgrowth AT iadolmatov crosssubsidizationintheelectricpowerindustrywhatisthelimitofgrowth AT iyuzolotova crosssubsidizationintheelectricpowerindustrywhatisthelimitofgrowth
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The cross subsidization in the electric power industry. What is the limit of growth?

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