Abstract

Abstract The aim of the article is to reveal some aspects state regulation of natural monopoly in Russia, which are of paramount importance in economic and social life of the country. The optimal path to reforming the monopolized industries is currently a very topical question for Russia. The Russian government requires studying the foreign experience in this field and adapting it to the Russian conditions. Almost complete lack of transparency in the pricing of natural monopolies is one of the most important problems in Russia. In this connection, against the background of almost uncontrolled corruption in the country, the decision to increase tariffs for practically all services provided by monopolists, irrespective of the world prices for energy resources, causes distrust and just censures. The inefficient management of the state corporation Gazprom, a significant reduction in taxes transferred to the state budget, has not, until now, been the subject of thorough audit and critical analysis by the relevant government agencies. The Ministry of Energy does not attempt to reform the gas industry, for example, in the likeness of Scandinavian countries, where surprising results have been achieved in the operation of numerous energy suppliers. The increase of tax revenues to the country’s budget and the improvement of the quality of life of the population depend on to the scope of reforms of the industry the state will carry out based on a combination of administrative and economic control measures. Methods of investigation used: analysis, synthesis, comparative analysis.

Highlights

  • In recent decades, significant changes in the models of monopoly market organization have happened in many economically developed countries

  • A natural monopoly is commodity market conditions when the satisfaction of demand is more effective in terms of the absence of competition due to technological features of production; the goods produced by subjects of natural monopoly can not be replaced in consumption by other goods, as a result the demand in this market has lesser extent of dependence on the price change for this product than the demand for other types of goods (Belousova, 2016, p. 55)

  • − biased nature of the regulatory bodies; − high costs due to high labor intensity of the regulatory process; − active intervention by regulators has an overwhelming effect on the firm administration; − restrictions for structural reorganization of the industry; − restrictions for the development of competition in industries that lose the features of natural monopoly (Sapir, 2004)

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Summary

INTRODUCTION

Significant changes in the models of monopoly market organization have happened in many economically developed countries. The direction of reforms was determined by the need to eliminate the excessive government control of the state monopoly and to devise conditions for a competitive market. Such measures were intended to reduce the burden on the state budget. There are various opinions in the economic theory about the methods and limits of natural monopoly regulation. It should be noted that to date there is no universal method of state regulation of natural monopoly in the world. The research methodology assumes a comparative analysis of the Russian and world experience of state regulation of natural monopolies and creation of a competitive environment in the gas industry.

STATE REGULATION OF NATURAL MONOPOLY IN RUSSIA
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WORLD EXPERIENCE OF STATE REGULATION OF NATURAL MONOPOLY
MAIN AREAS OF STATE REGULATION OF NATURAL MONOPOLY
Findings
CONCLUSION
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