NATURAL GAS DISTRIBUTION TARIFF AS A COMPONENT OF THE GAS DSOs EFFECTIVE ACTIVITY MECHANISM

Abstract

The activity of gas distribution system operators (gas DSOs) have been unprofitable in recent years. This is explained, on the one hand, by the rapid growth in the cost of services, and, on the other hand, by the slow rate of distribution tariffs revision, which are key sources of income for these business entities. Tariffs are the component of performance assurance mechanism. The method of tariff design and its establishment is within the competence of the national regulator. The method of tariff design requires careful research to identify the advantages and disadvantages, and choose the optimal approach in determining the income level of gas DSOs.
The comparison of current tariff designing and calculation methodology for natural gas distribution services with the temporary methodology, which was valid until 2020 was carried out in the article. The alternative options for choosing a base for determining planned level of tariff income of gas distribution companies are analyzed in terms of its compliance with legal requirements and influence on the level of gas distribution enterprises’ functioning efficiency.
Importance of transition to stimulating regulation, which provides for the introduction of RAB-tariff, is considered in the study. The idea of introducing RAB-tariffs is to provide gas DSOs with a fixed level of revenue, which is determined by the value of their production capacity (assets). Such changes are justified because they contribute to the modernization of infrastructure, improving the quality of services provided and, as a consequence, the gas DSO’s efficiency.

How to quote:

Tarasenko LO Tariff for natural gas distribution as a component of the mechanism of effective activity of GDN operators. Scientific notes of the National University
"Ostroh Academy". Series "Economics": a scientific journal. Jail: View
NaUAA, March 2021. № 20 (48). Pp. 89–94.

Formulas: 0; fig .: 0; tab .: 3; bibl .: 6.

Link:

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