Authors: Oxana Mozgovaya, Yuliya Sheval
Incentive regulation in infrastructure industries has been realized in Russia by comparative method. This article studies the first results of comparative method usage for fixing retail markups of default electricity suppliers. Being a part of incentive regulation, comparative method has a goal to stimulate default electricity supplier’s efficiency. In Russian practice comparative method normalizes a default electricity supplier’s yardstick revenue rates and limits retail markups increase factors, mainly by consumer price index (CPI). Despite it retail markups of default electricity suppliers have grown upper than CPI in transition period mainly by base period costs diminishing in most regions and (or) ‘yardstick cost’ limits inflating. Therefore, we suppose that after the transition period the expired default electricity supplier’s retail markups growth ratio will be comparable to the consumer price index rate.

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