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This article analysis the first results of the comparative method application for fixing regulated retail markups of default electricity suppliers in Russia. The goal of the comparative method adoption is the improvement of default electricity supplier’s effectiveness. Legislative analysis displayed that the comparative method normalizes the default electricity supplier’s yardstick revenue rates and limits the retail markups increase factors, mainly by the consumer price index. However, new methodology application during the transition period shows outstripping inflation growth rate of default electricity supplier’s retail markups. We have discovered that in most Russian regions it was driven by the base period costs diminishing and (or) ‘yardstick cost’ limits inflating. Therefore, authors assume that after transition period expiry default electricity supplier’s retail markups growth ratio will be comparable to the consumer price index rate.

Authors: Oxana Mozgovaya, Yuliya Sheval
The objective of the research is to develop proposals for optimal reduction (elimination) options of cross-subsidies in the electric power sector on the basis of an integrated assessment of its tariff effects.
 
The objective of the research is to develop optimal strategy proposals for creating a common market in energy and electricity in the Eurasian Economic Union (EAEU), provided for by the "Treaty on the Eurasian Economic Union".
 
The objective of the research is to assess the tariff effects of applying a yardstick competition method of activity regulation of Default Electricity Suppliers.
 

The paper reveals the specifics of cross-subsidization in the energy system of the Kaliningrad region. The key role of the wholesale electricity market in the formation of cross-subsidizing volumes is noted. The necessity of further cross-subsidization in relation to consumers of electric energy in the region is revealed and justified.

Cross-Subsidization is the price discrimination enabling low product (service) tariff (price) for one consumer’s group on account for another consumer’s group high price of the similar or another product (service). In present-day Russian electroenergetics the main Cross-Subsidisation is formed between the household (recipients) and any other consumers (Subsidisation group) under regulatory transmission rates calculation procedure.

Another kind of Cross-Subsidisation in power grid is new electricity consumers Cross-Subsidisation on account existing electricity consumers. It is due for financial assets reallocation between Electricity Distribution Network Connection activity and Electrotransmission activity in power grid. The article analyses the above-mentioned kind of Cross-Subsidisation, deriving by two components: - the first component is the Electricity Distribution Network Connection revenue shortfall reimbursement under regulatory transmission rates calculation procedure, - the second component is the Electricity Distribution Network Connection activity profit tax included to Gross Revenue Requirement of a Grid. The cost of Electricity Distribution Network Connection Cross-Subsidisation on account Electrotransmission activity is calculated in the article. The prices up-lift for consumers is determined as Cross-Subsidisation cost to Gross Revenue Requirement of a Grid ratio.

Electric power wholesale market has the greatest impact on cross-subsidisation capacity. The main weaknesses of actual cross-subsidisation rules are revealed in this article. Decrease of electrical grid restriction and increase of installed capacitance is a way to business activation in Russian Far East.

The commercial infrastructure formation is a key challenge of creating a common electric power market for the EAEU member states (Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia) provided for in the Treaty on the Eurasian Economic Union.  The article presents a comparative analysis of electricity trading arrangements in the EAEU states. There are notable differences between national power markets in composition of participants, infrastructure services, rules on trade and pricing policies. It was established that only the characteristics of the Russian electric power market fully comply with the requirements of program documents for the EAEU common electric power market. The appropriate recommendations are given on measures to adapt the power markets of other EAEU states to these requirements.

The international experience in integrating electric power markets is considered on the example of the countries of the European Union, Central Europe and the USA. Two models of the formation of common electric power markets are highlighted. The features of combining electric power markets for each model are described. A comparative analysis of the EAEU common electric power market and the existing associations of electric power markets abroad have been performed. Recommendations are given on improving the efficiency of the EAEU common electric power market.