In the section Articles
Title of the article The District Heating Regulation in Russia: Local Markets’ Reaction
Pages 62—82
Author Olga Valeryevna Dyomina
Candidate of Economics, Senior Research Fellow
Economic Research Institute FEB RAS
153 Tikhookeanskaya Street, Khabarovsk, Russia, 680042
This email address is being protected from spambots. You need JavaScript enabled to view it.
ORCID: 0000-0002-7992-5852
Abstract The article explores ways of state regulation of natural monopolies, shows their generalized classification. Two main ways of direct regulation are described: costs-based and stimulating. It is shown that there is an overwhelming trend of changing ways of regulation to less state-controlled. On the example of the district heating market of Russia the article shows the failing of the acting costs-based type of regulation. It is concluded that the main task of changing regulation is destroying the connection between tariffs and heat producer’s costs. The alternative way for district heating reform is a stimulating type of regulation based on price limits (the price of ‘heat-only boilers’). The author made estimates of gains received as a result of the reform for participants of three largest district heating markets of the Far East. It is shown that annual increase rates of tariffs for consumers will be: Vladivostok – 5.0%, Khabarovsk – 8.8%, Blagoveshchensk – 11.1%. The estimates do not support the estimates of Russian Ministry of Energy specialists according to which the annual increase rate is expected to be about 0.6%
Code 338.5
DOI 10.14530/se.2017.3.062-082
Keywords natural monopoly ♦ district heating ♦ local market ♦ state regulation ♦ tariff ♦ reform ♦ the price of ‘heat-only boilers’ ♦ Khabarovsk ♦ Vladivostok ♦ Blagoveshchensk ♦ the south of Far East
Download SE.2017.3.062-082.Dyomina.pdf
For citation Dyomina O.V. The District Heating Regulation in Russia: Local Markets’ Reaction. Prostranstvennaya Ekonomika = Spatial Economics, 2017, no. 3, pp. 62–82. DOI: 10.14530/se.2017.3.062-082. (In Russian).
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