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Models of regulation of network industries in Slovakia

Author

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  • Eleonora Fendekova
  • Michal Fendek

Abstract

In relation with objectification and increase in nationwide operation effectiveness of natural monopolies in network industries on the market, the role of regulation mechanisms is increasing. Its aim is the closest approximation of proportions between price and level of network industry products supply to the situation which would occur in the conditions of market competition. Important part of market with electricity, gas, and other network industries products restructuring in the Slovak Republic was the creation of a new regulatory framework. In August 2001, The Regulatory Office for Network Industries (hereinafter only 'Regulatory Office' or 'RONI') has been founded. Its role is to issue licenses, regulate prices and quality norms for network industries products. In the years 2001-2005, the Regulatory Office defined the price regulation regime and worked out a framework of new price regulation rules for network industries products price setting. The aim of this paper is to present the results of the network industries products regulation model application in the Slovak Republic.

Suggested Citation

  • Eleonora Fendekova & Michal Fendek, 2009. "Models of regulation of network industries in Slovakia," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 1(4), pages 479-495.
    • Handle: RePEc:ids:ijecbr:v:1:y:2009:i:4:p:479-495
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