The Bulletin of the Institute of Economics of the Russian Academy of Sciences № 1/2024.  Economics and Management.

Dmitriy V. Agafonov

Cand. Sci. (Econ.), Deputy Director of the Centre for Economic Research of Infrastructure Industries of the Natural Monopoly Economies Institute, RANEPA, Moscow, Russia

ORCID: 0000-0001-7217-2256

 

Oksana O. Mozgovaya

Director of the Centre for Organization of Scientifi c Activity and Project Management of the Natural Monopoly Economies Institute, RANEPA, Moscow, Russia

ORCID: 0000-0001-6556-2459

 

Boris I. Fayn

Director of the Centre for Economic Research of Infrastructure Industries of the Natural Monopoly Economies Institute, RANEPA, Moscow, Russia

ORCID: 0000-0002-0891-4849

 

Vasiliy V. Kuznetsov

Lead expert of the Centre for Methodology and Forensic Economic Analysis of the Natural Monopoly Economies Institute, RANEPA, Moscow, Russia

ORCID: 0000-0003-4853-1698

 

ASSESSING THE RESULTS AND PROSPECTS FOR INTRODUCING YARDSTICK REGULATION IN THE ELECTRIC POWER INDUSTRY

87-112

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Abstract

Since 2018, the electric power industry has been undergoing an evolutionary restructuring of approaches to the formation of regulated tariffs. In particular, the government of the Russian Federation passed a decree introducing new rules of sales markups of GESs using the analogue comparison method. It provides for normalization of operating expenses. All participants in the electricity market and state executive authorities needed to reconfigure with reference of a radical transformation of approaches to tariff regulation. The authors of the article focus on the assessments lack of the reconfiguration results and the small volume of recommendations for expanding the use of yardstick regulation.

The article summarizes the results of the five-year period of the new tariff regulation approach of GESs. The authors also presented an assessment of the prospects for further use of the analogue comparison method in relation to electric grid enterprises. This was the purpose of the article.

To achieve this goal, the authors analyzed the results of the switch to the analogue comparison method. In particular, the article examines changes in sales markups: an increase in the sales markup median value of GESs has been revealed by 2–3 times since 2018, depending on the group of consumers. In conclusion, the authors proposed possible tools for adjusting and fine-tuning the method of analogues comparison in relation to the GESs activities. The article also gives the author's assessment of the prospects for expanding this method to other natural monopoly segments, including electricity transmission and distribution.

Keywords: guaranteeing electricity supplier, sales markups, tariff regulation, analogue comparison method, yardstick regulation.

JEL: D4, G38, L94, O25

EDN: LUSDVA

DOI: https://doi.org/10.52180/2073-6487_ 2024_1_87_112

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Manuscript submission date: 15.01.2024  

For citation:

Agafonov D.V., Mozgovaya O.O., Fayn B.I., Kuznetsov V.V. Assessing the results and prospects for introducing yardstick regulation in the electric power industry // Vestnik Instituta Ekonomiki Rossiyskoy Akademii Nauk. 2024. № 1. Pp. 87-112. (In Russ.). https://doi.org/10.52180/2073-6487_2024_1_87_112 EDN: LUSDVA

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