FACTORS OF INFLUENCE ON PRICING OF ELECTRICITY SUPPLY COMPANIES

Keywords: electricity supply company, electricity market, price, pricing, market liberalization, tariff

Abstract

The article examines the specifics of the functioning of the electricity market in Ukraine . Influence factors are classified as internal and external. The structure of the tariff for the services of the universal service provider is considered. The mechanism of cost formation and the principles of determining its key components have been studied: operating costs are related to the provision of universal services by the electricity supplier; material expenses; salary expenses; deduction of a single social contribution; amortization; calculation of other operating expenses. It has been proven that the key factor influencing pricing is state regulation. Energy is a strategically important branch of the economy of any country. In the conditions of war, the stability of its functioning is mandatory to ensure not only the continuous activity of all business entities, but also to create prerequisites for the development of the country's economic security. However, throughout the entire period of Ukraine's independence, the energy industry underwent significant changes and transformations. With the adoption of the Law of Ukraine "On the Electricity Market", a two-stage transition to a "liberal" market model took place. The stability of the functioning of the electricity market largely depends on the efficiency of pricing at electricity supply enterprises, which is influenced by a number of factors. It is important to identify and systematize them in order to reduce their destabilizing influence. A large number of pricing methods are presented in the scientific literature, however, despite the thoroughness of the conducted research, the analysis and systematization of factors influencing pricing at electricity supply enterprises were not carried out. The features of external factors affecting the electric energy market have been determined and analyzed, including: state regulation; market condition and demand; competition; consumer behavior. Even without taking into account the provision of the opportunity for consumers to freely choose an electricity supplier, the latter lacks the ability to interest the household consumer with a cheaper price for electricity, except for strong price dumping, which will lead to bankruptcy quite quickly.

References


1. Metodyka rozrakhunku taryfu na posluhy postachalnyka universalnykh posluh, zatverdzhena postanovoiu NKREKP vid 05.10.2018 №1176 [1. The method of calculating the tariff for the services of a universal service provider, approved by the resolution of the National Committee of the National Committee of the Russian Federation No. 1176 of 10.05.2018]. (in Ukrainian)
2. Ofitsiinyi sait NKREKP [Official site of NKREKP]. Available at: https://www.nerc.gov.ua/ (in Ukrainian)
3. Pro rynok elektrychnoi enerhii: Zakon Ukrainy vid 13.04.2017 № 2019-VIII. Vido-mosti Verkhovnoi Rady Ukrainy [On the electric energy market: Law of Ukraine dated April 13, 2017 No. 2019-VIII. Information of the Verkhovna Rada of Ukraine]. Available at: https://zakon.rada.gov.ua/laws/show/2019-19#Text (in Ukrainian)
4. Smit A. (2001) Dobrobut natsii. Doslidzhennia pro pryrodu ta prychyny dobrobutu natsii [The welfare of nations. An Inquiry into the Nature and Causes of the Welfare of Nations]. Kyiv: Port-Royal (in Ukrainian)
5. Blank I.O., Sytnyk H.V., Andriiets V.S. (2017) Upravlinnia finansamy pidpryiemstv [Enterprise finance management] Kyiv: Kyiv national trade and economy University (in Ukrainian)
6. Artus M.M. (2012) Formuvannia mekhanizmu tsinoutvorennia v umovakh rynkovoi ekonomiky: monohrafiia [Formation of the pricing mechanism in the conditions of the market economy: monograph]. Ternopil: Economic thought. (in Ukrainian)
7. Redchenko K.I. (2009) Tsinoutvorennia v suchasnykh umovakh [Pricing in modern conditions]. Zbirnyk naukovo-tekhnichnykh prats. Naukovyi visnyk NLTU Ukraine, no. 19.4. Available at: http://www.nbuv.gov.ua/portal/chem_biol/nvnltu/19_4/222_Redczenko_19_4.pdf (in Ukrainian)
8. Ofitsiinyi sait NEK «Ukrenerho» [Official site of NPC «Ukrenergo»]. Available at: https://ua.energy/ (in Ukrainian)
Published
2024-03-29
Pages
41-47
Section
SECTION 2. ECONOMY AND ENTERPRISE MANAGEMENT