ANALYSIS OF GAS AND ELECTRICITY DISTRIBUTION NETWORKS: THE TARIFF REGULATION REVIEW

Abstract

The distribution of gas and electricity certainly belongs to the strategically important activities, the success of which affects the socio-economic situation in the country. Energy distribution companies not only transport energy to customers, but also balance energy consumption, thus influencing all economic processes. However, the energy sector is characterized by several limiting factors. Companies should optimize their activities through energy supply and reception planning, capacity forecasting, providing the necessary level of flexibility of energy systems and the ability to integrate diversified gas and electricity distribution operators. All this requires a balanced and detailed approach to the formation of tariff policy, which takes into account the cost of maintenance and maintenance of energy networks, justification of the costs of business operations given the possible social response to rising final tariffs for gas and electricity. Therefore, the issue of tariff regulation in the energy sector requires a detailed study and analysis of best practices for setting tariffs for services for energy network operators. To this end, the study provided a review of the scientific literature on tariff regulation of gas and electricity distribution networks. The results of the study did not show significant elaboration of the topic but revealed only differences in views on optimal pricing for energy distribution networks in different countries.