A long-term regulation assessment of utility tariff in the adopted tarif decisions annual adjustment context

Abstract

The article provides a detailed assessment of long-term regulation mechanisms under the conditions of adopted tarif decisions annual adjustment. The Concept of tarif regulation mechanisms introduction for a long-term period has been analyzed. The expediency of application of long-term tarif regulation mechanisms and reasons for emerging contradictions in the transition to such regulation have been determined. The descriptive, analytical and comparative methods have been used and legislative base ofRussia analyzed. The article describes the consequences ofthe transition to establishing long-term tariff and provides evidence of emerging ambiguous situations associated with the increase in the burden and possible losses of participants in the process oftarif regulation. The reasons for emerging contradictions in the transition to long-term tarif regulation have been identifid and substantiated. The authors focus on the analysis ofthe developed target model ofsuch regulation, the effctiveness ofwhich is due to the optimization of operating costs by attracting investment in infrastructure development and state of production facilities. It has been proved that the effctiveness of long-term regulation is subject to doubts and ambiguous situations associated with the increase in the burden on regulatory authorities and possible losses ofresource supplying organizations. The consequence ofit may be a serious change in the indicators of forecasts of socio-economic development of the Russian economy