Is There a Need to Pay for Connection to the Gas Distribution Network?

17 May 2017

The scandalous NCREPU decision on introducing a gas distribution tariff (connection fee) has once again demonstrated that Ukraine has no well-established school of energy regulation. Experience in this area has been accumulated in the US for more than 200 years; in Great Britain, for nearly 100 years; systems of state regulation of energy market monopolies have been actively developing in Europe, Australia, New Zealand, Asian and African countries. The Ukrainian experience in state regulation of natural monopolies and markets of energy resources is not being formed in accordance with the theory of economic regulation or on the basis of a profound study of best practices; unfortunately, it follows the path of trial and error and this has a negative effect on all actors in the monopolistic markets: consumers, businesses and the state.

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