Public Utility Sector Research Articles

Life Cycle Modeling for Utility Infrastructure in Municipal Entities

The current development stage of utility infrastructure is characterized by structural changes resulting from the existing property rights, as well as institutional, organizational, economic, concessional, innovative, and resource-saving mechanisms, the accelerated introduction of new technologies and materials, and the implementation of actions aimed at the reduction of physical and functional depreciation of facilities. The key objectives of managing the reconstruction, upgrade, and repairs of the public utility sector (PUS) facilities include the sustainable development, update, and operation of the housing stock and utility infrastructure (UI), preservation, and technical operability of structures and utility systems. Therefore, the public utility services currently require new strategic planning methods for the social and economic development of the PUS as a key element of municipal entities based on the use of reproduction policy tools throughout the utility infrastructure life cycles and the improvement of project and program approaches necessary to ensure the investment in the sector and facilitate the interactions between the municipal entities, business community, and residents. This article deals with the methodological approach to the life cycle modeling for utility infrastructure in municipal entities based on balancing the phases and innovation activities concerning the features of utility service production and consumption and the necessity to use digital and smart-city technologies to maintain proper operational modes and parameters throughout the life cycles of utility infrastructure units. This requires accelerating reproduction processes, maintaining the best proportion of capital and current costs, expected profitability, and management risks for utility property portfolio.

Political uncertainty and city bank lending in China: Evidence from city government official changes

Using data hand collected in China between 2001 and 2016, this paper examines how political uncertainty affects city bank lending. Our results show that political uncertainty causes banks to significantly increase loan growth. These results are moderated by the characteristics of government officials, bank characteristics, and the degree of marketization. Our results further show that changes by government officials increase medium-term loan growth, mainly for the real estate and public utilities sector. Finally, we show that city government official changes increase bank lending and, thus, increase credit risk, that is, bank lending has a mediating effect.

Institutional Investors and Corporate Environmental Innovation

This paper addresses whether institutional investors drive firms' innovation direction toward environmentally friendly technologies. The data pertain to comprehensive environmental patents filed by Chinese publicly-listed firms in the manufacturing and public utility sectors during the 2003-2015 period. We find that institutional investors are associated with higher ratios of environmental patents in total patents for firms in the pollution-intensive sectors than those in the non-pollution-intensive sectors. Institutional investors exert the roles of financial support and corporate governance in pursuit of monitoring firms' long-term sustainable innovation. They further facilitate the information disclosure on corporate social responsibility. Lastly, institutional investors are motivated by financial returns.

Operational Sustainability of the Firm

This article presents the research results that assess a firm’s operational sustainability by combining the Degree of Operating Leverage (DOL) with the Current Liquidity Ratio (CLR) to present the Operational Performance versus Financial Solvency (OPFS) binomial, using a non-parametric model. The combination of the DOL with the CLR identifies metrics that indicate that a firm operates at full installed capacity and injects synergy at the generation of financial assets. The model was tested with data from standardized financial statements from 48 firms distributed among 6 sectors of the Brazilian economy, from 2007 to 2017. The results obtained suggest that, when a firm operates at full installed capacity, the DOL varies between 1 and 2, and the CLR is higher than the DOL. From the 6 sectors contemplated by the sample, 4 stand out by operating at full installed capacity with the CLR higher than the DOL, and 2 sectors signal some idleness with the DOL above 2 and the CLR lower than the DOL, such as the Public Utilities Sector (PU) indicating the highest efficiency among all. These results are relevant to illustrate that the combination of the DOL with the CLR is robust enough to evaluate a firm’s operational sustainability.

Analiza kreditne zaduženosti javnih preduzeća čiji je osnivač grad Loznica

In contemporary business conditions, that is, in a market economy, business success of a company has to be based on a basic economic and business principle of accomplishing the best possible business results with as little investments as possible. Considering that public utilities carry out public interest activities and employ a large number of people in Serbia, a need emerges to analyze their current status. The goal of this business analysis is to find out appropriate ways of improving public utilities business, including the improvement of the entire public utilities sector in Serbia. The subject of this paper is the analysis of indebtedness of public utilities on the territory of the city of Loznica. Special attention is paid to enterprises that have long-term liabilities in their business. The aim of this paper is a realistic presentation of the indebtedness of public utilities whose founder is the City of Loznica. The amount of indebtedness of local companies is compared in relation to the average indebtedness of public companies from the territory of the Republic of Serbia and the Mačva District. The City of Loznica has established five public companies, with three public companies performing communal activities. The paper will use the ratio analysis of financial indicators. The business operations of the utilities in the period from 2017 to 2019 will be analysed. In addition, the aim of this paper is to present alternative sources of financing for public utilities, which companies can use in case of facing financial problems. The research established that public utilities in Loznica do not have high long-term liabilities, but that this is not the case with other public utilities in Serbia.

Digitalization of the housing and communal services: development prospects

The subject of the research is to study the impact of modern digital technologies on the organization and management of public utilities within the framework of the concept of “smart HCS”, which ensures optimization of municipal budgets, reducing the costs of homeowners for the maintenance of real estate, and, as a result, improving the quality of life of citizens. The purpose of the study is to identify promising areas of digitalization of the housing and communal services sector (hereinafter referred to as HCS), creating comfortable and safe living conditions for citizens using smart technologies adapted to the “smart city” concept. In the course of the study, the methods of scientific analysis were used, including methods of analogies for generalization and comparative analysis of the digitalization of such areas as the “smart” housing sector and the “smart” utility sector. The result of the study is to highlight the most promising areas of digital transformation of the public utilities sector and the positive effect that can be obtained for each participant in this business process. As a conclusion, it should be noted that the active implementation of the concept of “smart HCS” will help in solving such problems as increasing the readiness of management companies and resource supplying organizations to use digital technologies for high-quality provision of public services to the population, intensifying work on the formation of a unified information environment for control and supervision in the field of HCS through the further development of SIS HCS, etc.

Algorithms and models of power losses in circuit breakers installed in networks

Determination of the main characteristics of the topology and technical condition of equipment underoperating conditions is necessary for analyzing and assessing power and electricity losses in intrashoplow-voltage industrial power supply networks. A comparative analysis of the technical characteristicsof automatic circuit breakers VA57-31 (KEAZ), NSX100 TM-D (Schneider Electric), DPX3 160 (Legrand), Tmax XT1 TMD (ABB) has shown that the main technical parameters of the machines are close in their values. At that it has been found out that automatic switches of the BA57-31 series have the lowest value of power losses per pole (7.5 W), whereas the automatic switches of the Tmax XT1 TMD series have the highest value (10 W). Thus, under the operating conditions of the equipment, the lowest value of power and electricity losses is characteristic of low-voltage electrical networks with installed circuit breakers of the BA57-31 series, and the highest value of losses is noted in in-shop systems with installed circuit breakers Tmax XT1 TMD. Using catalog data, the dependences of active power losses in circuit breakers on rated currents have been established; the algorithms have been developed and the obtained dependences have been modeled using approximating functions. The standard deviation of the compiled approximating functions has been calculated. Analytical expressions of the dynamics of power losses per pole have been determined as a function of the rated current. The graphical dependences of the investigated parameters of low-voltage equipment have been presented. The developed models are recommended to be used to increase the reliability of the assessment and refinement of the amount of active power and electricity losses in low-voltage electrical networks of industrial power supply systems, agrotechnical complexes, and enterprises of the public utility sector.

The role of financial analysis using financial models to predict the financial stumble on the Saudi public utilities sector: An applied study: دور التحليل المالي باستخدام النماذج المالية للتنبؤ بالتعثر المالي على قطاع المرافق العامة السعودية: دراسة تطبيقية

This study aimed to find out the role of financial analysis using financial models to predict the financial stumble on the Saudi public utilities sector. The study was based on the financial analysis of the financial lists published by the sample of the study of the Gas and Manufacturing Company (Gasco) and the Saudi Electricity Company listed in the Saudi Capital Market Authority. During the period (2009-2018) I followed the descriptive analytical approach. The study found the effectiveness of the Abdul Rahman model to predict the financial stumble on the public utilities sector, and the low effectiveness of the Altman model and the Kida model to predict financial stumbles on the utility sector. The study also recommended encouraging audit offices to add financial analysis services to the possibility of predicting and addressing financial stumbles, directing companies using financial models that help predict financial stumbles, encouraging investors to use financial models that help predict financial stumbles to make the right decision, and directing researchers in the study of financial default forecasting on the insurance sector using the Abdul Rahman model.

Проблемы электроснабжения в коммунально-бытовом секторе Арктической зоны Республики Саха (Якутия)

The article assesses the current state and problems of the power supply system, highlights the most pressing problems in the public utilities sector in the Arctic zone of the Republic of Sakha (Yakutia). On the basis of statistical processing of information by subdivisions of JSC Sakhaenergo, the authors present an analysis of the structure of generating capacities and the dynamics of the installed capacity of power plants, including those based on renewable energy sources. Diesel power plants account for the largest share of the installed capacity, with renewable energy sources accounting for less than 1.4%. The main problem in power generation is equipment wear. In total, in the Arctic uluses of the republic in the communal and household sector, the standard resource for operating time since the start of operation exceeded more than 30% of the total number and 20% of the total installed capacity of diesel units, of which 60% are operating after major repairs. The authors outline main problems of fuel supply for the considered Arctic uluses: harsh climatic conditions, difficult transport accessibility, unstable hydrological situation, insufficient amount of dredging work, and a shortage of special road equipment. The assessment of the wear of power transmission lines and transformer substations is carried out. Of the total length of overhead power lines, 18.5% exceed the service life limit. For cable lines, this figure is 50.6%. In five uluses, more than half of the installed capacity of transformers exceeds the standard resource. Assessment of the electricity losses level shows that, on average, they amount to 15% for district power grids. In a number of Arctic uluses, there are high energy losses in power grids as well as their constant growth. When replacing and reconstructing outdated infrastructure, it is advisable to implement measures aimed at reducing losses and increasing the capacity of lines.

Perceived managerial and leadership effectiveness within the Canadian public sector

AbstractThis study responds primarily to numerous calls for specific public management and public administration‐related research to better understand public leadership currently performed in an increasingly complex and ambiguous world. It also responds to calls in the human resource development (HRD) literature for more qualitative managerial behavior research. The inquiry explores perceptions of what behaviorally distinguishes effective managers from ineffective managers, as expressed by managers and nonmanagerial employees within a Canadian public utility company. It reaches for generalization by comparing the results against findings from equivalent qualitative managerial behavior studies carried out in three subareas of the British public sector. Using the critical incident technique (CIT), concrete examples (critical incidents [CIs]) of observed managerial behavior were collected from managers and nonmanagerial staff. The CIs (n = 530) were subjected to open and axial coding to identify a smaller number of discrete behavioral categories (BSs). Selective coding of the identified BSs (n = 99) resulted in 16 positive (effective) and 12 negative (ineffective) behavioral criteria (BCs) being deduced. Over 92% of the Canadian BSs are convergent in meaning with over 81% of the compared British BSs. Consequently, they are likely to be generalizable to other subareas of the Canadian public sector. The 8% of nonconvergent Canadian BSs and their respective underpinning CIs contain no content that could be construed as being context‐specific to the Canadian public utility sector. Implications of these study findings for HRD research and practice are discussed.

Quality and Diffusion of Social and Sustainability Reporting in Italian Public Utility Companies

In recent decades, non-financial reporting has been widely debated in the literature relating to both public and private sectors. Non-financial reporting is used to increase accountability and transparency, and to adapt to external pressures and stakeholder expectations. The focus on external factors, i.e., transparency and stakeholders, has largely precluded research into the quality of non-financial reporting. Nevertheless, the quality and reliability of sustainability reports have been widely questioned in the literature. Non-financial reporting may provide purely symbolic actions to manage expectations. This paper analyzes the level of diffusion and quality of non-financial reporting tools in the public utility sector. We use the principles of the GRI (Global Reporting Initiative) framework to measure quality, i.e., clarity and accuracy, timeliness and stakeholder engagement, comparability, and reliability. We use a qualitative exploratory approach with a mix of primary and secondary sources. The results show that despite the increasing use of non-financial reporting in organizational life, it is not diffused within public utilities. We address the issue of quality, and find that, overall, the accuracy/clarity and comparability of non-financial reporting is satisfactory; timeliness and stakeholder engagement appear to be acceptable, while reliability does not appear to be acceptable.

Realities and opportunities for the introduction of digital technologies in public utilities sector

Realities and opportunities for the introduction of digital technologies in public utilities sector

ON THE PROBLEM OF ADAPTATION OF COMMUNAL ENERGY TO GLOBAL WARMING (REVIEW)

Data are presented on the dynamics of changes in global temperature and atmospheric content of the most important greenhouse gases (CO2, CH4, N2O), which, according to modern views, are responsible for increasing global surface temperature. The necessity of developing a policy of adaptation to global warming, in particular in the public utilities sector, was highlighted. A brief review of organizational, economic, and technological innovations of energy-efficient use of energy resources with a reduction in emissions of harmful emissions and greenhouse gases is presented. The goal is formulated and the main components of the strategy for adapting municipal energy to global warming are indicated.

Do mergers and acquisitions create shareholder value in the infrastructure and utility sectors? Analysis of market perceptions

Through an analysis over a 20-year period from 1997 to 2017 for a global sample of listed infrastructure companies, 80% of which were utilities, this study shows that target companies' Cumulative Average Abnormal Returns (CAARs) are positive and statistically significant, while acquirer firms earn positive but not statistically significant CAARs. The results obtained must be viewed in light of the restructuring that has distinguished the last 20 years by strongly modifying the infrastructure environment and facilitating the diffusion of mergers and acquisitions (M&A). Our results support the financial reasonableness and potential efficiency of M&A transactions in the infrastructure and public utility sectors, with specific reference to target companies.

Possibilities for Improving Energy Efficiency at Water Utility Sector

Energy efficiency plays an important role in all water sectors. Energy is one of the largest operating costs for water system. For water utility systems, energy is needed for transports of raw water, water treatment process, water storage and distribution. Energy usage can vary based on water source, treatment type, facility age, storage capacity, topography, and system size, which encompasses volume produced and service area. Water Companies are well known with importance of reducing energy consumption and costs as a means to optimize overall system performance and to provide a safe water supply. But managing staff of the water system and operators may not be fully aware of the options available to them to manage their energy budget or to identify, prioritize and fund energy improvement projects. By applying energy efficiency, water utility sectors can build a successful energy management program and achieve energy savings. This paper discusses energy issues facing public water utility sector, steps that responsibility personnel can take to understand and reduce their energy use and costs, and funding resources for energy efficiency. Main focus in this paper is to perform possibilities for increasing energy efficiency of the Pumping Station in Milloshevë which supply with raw water Treatment Plant in Shkabaj, Kosovo.

The Possibilities for Improving Energy Efficiency at Water Utility Sector

Energy efficiency plays an important role in all water sectors. Energy is one of the largest operating costs for water system. For water utility systems, energy is needed for transports of raw water, water treatment process, water storage and distribution. Energy usage can vary based on water source, treatment type, facility age, storage capacity, topography, and system size, which encompasses volume produced and service area. Water Companies are well known with importance of reducing energy consumption and costs as a means to optimize overall system performance and to provide a safe water supply. But managing staff of the water system and operators may not be fully aware of the options available to them to manage their energy budget or to identify, prioritize and fund energy improvement projects. By applying energy efficiency, water utility sectors can build a successful energy management program and achieve energy savings. This paper discusses energy issues facing public water utility sector, steps that responsibility personnel can take to understand and reduce their energy use and costs, and funding resources for energy efficiency. Main focus in this paper is to perform possibilities for increasing energy efficiency of the Pumping Station in Milloshevë which supply with raw water Treatment Plant in Shkabaj, Kosovo.

Methods for assessing the effectiveness of energy-saving projects in construction and public utilities sector

The purpose of this paper is to assess the effectiveness of investment projects in terms of ensuring energy security and sustainable economic development of construction enterprises and public utilities sector. The study revealed that existing methods for assessing the efficiency of energy-saving projects in public utilities sector are often local in nature and do not contribute to energy security. A methodology is needed for the economic feasibility of energy demand at affordable prices in the domestic and foreign markets. As a result, the authors proposed a method for solving the problem of rational use of fuel and energy resources in a system of three sectors: capital construction, public utilities sector, and the fuel and energy industry as interrelated sectors of the economy and the economic turnover of fuel and energy resources.

Protection of the Rights of Public Utilities Market Participants (In the Context of Poverty Prevention)

The article analyzes the facility of protection of rights in the public utility market. The main task is to assess the effectiveness of the existing legal approach to solving this problem in the context of preventing poverty of all market participants - consumers, service providers and investors on the principle of «Leave no one aside», reflected in the UN Global Sustainable Development Goals for the period 2015-2030. The study covers three components of the facility for protecting public utilities market participants in the public utilities market: prevention of potential poverty, reduction of existing poverty and compensation to the injured party in a case of tort that exacerbates or threatens to exacerbate its poverty. The analysis is based on official statistical information on the activities of the public utilities sector. Operational information of public utility service providers regarding certain indicators of their activity in the work was not studied. This approach narrows the empirical basis of the study, but at the present stage in the context of different rates of implementation of changes in regions, sectors and at the level of individual entities, as well as lack of uniformity in the structure of indicators published by service providers, analysis allows to identify «bottlenecks» of legal regulation, which are systemic in nature and largely independent of the subjective factor. The analysis allowed to determine the positive impact of targeted subsidies on the effectiveness of the facility of the utilities market participants protection in the context of poverty alleviation, as well as factors that reduce this efficiency, in particular, targeted inconsistency of the legal model of the market, accounting for services and liability for breach of contract for their payment.

Novo relatório do auditor independente: uma análise sobre os principais assuntos de Auditoria presentes nos relatórios dos auditores independentes de empresas listadas na B3

In 2016, due to the need to align accounting and auditing standards with international standards, Brazil adopted the New Independent Audit Report, making it more informative. Among the changes, the insertion of the main audit matters section. The objective of this work is to identify the elements of economic and financial information most communicated in the new section and to analyze whether there has been an increase in reports issued with a modified opinion since the adoption of the New Report. This work is relevant for exploring the line of audit research in the accounting scientific community. Topics such as: accounting, internal and external auditing, convergence to international standards and capital markets were addressed. The methodology characterized as quali-quantitative, exploratory, descriptive and documentary and used statistical software for data analysis. 14 companies from the non-cyclical consumption, financial and public utility sectors were analyzed, resulting in 46 main audit matters, 16 of which were different. As a complementary result, the analysis of companies in the period from 2013 to 2018, separating them into two groups, one before the new report and the other after, it was noticed, through the graph, that the number of reports with modified opinions had a upward trend since the adoption of the New Report.

CONDITIONS OF INDUSTRIAL INSTITUTIONALIZATION OF WATER SUPPLY AND SANITATION SECTORS IN THE REPUBLIC OF BELARUS

The article studies the features of the functioning of water supply and sanitation sectors, characterizing it as a relatively independent administrative and economic sector in the housing and communal services system of the Republic of Belarus. A study was made of the distinctive features of the water supply and utilities sector from other sectors of the public utilities sector of the Republic of Belarus: the heterogeneity and complexity of the technological processes for the preparation and purification of water, the territorial unevenness of residence of consumers of services, state-regulated tariffs for water supply and sewage, arising from the social significance of this strategic resource