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Cross-subsidizing in power industry: approaches to development of stage-by-stage decrease in volumes

Author

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  • A. V. TRACHUK
  • N. V. LINDER

Abstract

The paper is devoted to economic effects of decrease in volumes of cross subsidizing for participants of the market of electric energy are considered, and also methodological approaches to modeling of a stage-by-stage decrease of volumes of cross subsidizing in economy are developed. The methodology of the system of national accounts (SNA) – symmetric tables “expenses – release†and intersectoral balance “a product – a product†calculated on release of the final product of 22 industries – was used to model the influence of economic and social effects due to cross subsidies elimination. The comparative analysis of one-stage and gradual options to cross subsidies elimination was carried out. One-stage elimination of cross subsidizing showed more the worst results on economic indicators of participants of a power market, than at its stage-by-stage decrease.Modeling of stage-by-stage decrease in cross subsidizing is aimed at determination of the greatest possible growth rate of tariffs for the electric power for the population. The indicator of the minimum value of economic damage to branches of the economy, calculated as a difference of a balanced gain (departure) of a gross value added in the range of a threshold interval of increase in expenses of house farms on the purchased electric power in the general structure of expenses is used as criterion of an optimality of growth rate of tariffs for the electric power. The macroeconomic model of formation, use and reproduction of a branch value added is used for creation of model. The analysis of impact of change of tariffs for the electric power for the population is carried out with a step to 1% to the level providing full reduction of cross subsidizing. Optimum speed of a gain of tariffs for regions with the maximum rate of a tariff for the electric power (Moscow region) and the minimum rate (Orenburg region) is calculated.Â

Suggested Citation

  • A. V. Trachuk & N. V. Linder, 2017. "Cross-subsidizing in power industry: approaches to development of stage-by-stage decrease in volumes," Strategic decisions and risk management, Real Economy Publishing House, issue 1-2.
  • Handle: RePEc:abw:journl:y:2017:id:657
    DOI: 10.17747/2078-8886-2017-1-2-24-35
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