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Incentive Domestic Gas Price Regulation in Russia: Comparative Analysis of Alternative “Price Cap” Indicators

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  • S. Golovanova

Abstract

Introduction of the price regulatory mechanism based on the principle of equal profitability of domestic and export gas sales is announced in Russia. In this article the “price cap” mechanism is considered as a form of incentive regulation; the experience of using the external market price as an indicator of the “fair” price level in antitrust enforcement is presented. Analyzing the existing wholesale gas price formation mechanisms around the world we identify alternative indicators of the external market price for gas and compare levels and volatilities of the “base” internal gas prices calculated on their basis with the use of retrospective data.

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  • S. Golovanova, 2014. "Incentive Domestic Gas Price Regulation in Russia: Comparative Analysis of Alternative “Price Cap” Indicators," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 8.
    • Handle: RePEc:nos:voprec:y:2014:id:693
    DOI: 10.32609/0042-8736-2014-8-106-121
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