CROSS-SUBSIDIZATION AS A DESTRUCTIVE FACTOR OF UKRAINE`S ELECTRIC POWER DEVELOPMENT

Автор(и)

Ключові слова:

electric power industry, electricity, crosssubsidization, electricity price, pricing

Анотація

Urgency of the research. Changes in Ukraine`s energy sector on account of political events of 2013-2015 years increased the urgency of modernizing the power sector. Target setting. At this point it is necessary to identify the peculiarities and the destructive electricity market factors for the further development of recommendations for its improvement. Actual scientific researches and issues analysis. Pricing issues in the electric power market and crosssubsidies are reflected in the works of such scholars as Yu. Borovyk, V. Verbynskyi, M. Zemlianyi, V. Yevdokimov, I. Kosse, V. Lahutin, O. Perfilova, V. Shevchuk. Uninvestigated parts of general matters defining. Scholars generally agree that cross-subsidization leads to the accumulation of contradictions in the electricity market, but there practically no studies that are based on the analysis of empirical data on the subject. The research objective. The paper aims to evaluate the impact of cross-subsidization on the power industry on the basis of consumption and price structure information. The statement of basic materials. Statistics indicate the destructive impact of cross-subsidies on the electricity sector and the economy as a whole. On the one hand unreasonably low price of electricity for the population eliminates the incentive to economical consumption, and on the other - the enormous scale of cross-subsidization inhibit business development as a donor subsidies. Conclusions. Generally, cross-subsidization practice in Ukraine has exhausted itself. Its continuation will result in a further decline in business activity and create obstacle to technological and organizational renewal of electricity. Counting on its normal development is obviously only possible provided the introduction of market-based instruments of mutually beneficial partnership between the electricity market participants in domestic practice.

Біографії авторів

Olha Abakumenko, Chernihiv National University of Technology

Doctor of Economic Sciences, Professor Professor of the Department of Finance, Banking and Insurance

Pavlo Lukiashko, Chernihiv National University of Technology

Candidate of Economic Sciences, Associate Professor Professor of the Department of Finance, Banking and Insurance

Посилання

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Як цитувати

Abakumenko, O., & Lukiashko, P. (2017). CROSS-SUBSIDIZATION AS A DESTRUCTIVE FACTOR OF UKRAINE`S ELECTRIC POWER DEVELOPMENT. Науковий вісник Полісся, 2(1(9), 8–12. вилучено із http://nvp.stu.cn.ua/article/view/101637

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