At present, water supply and Sewerage enterprises in small towns are experiencing an acute shortage of financial resources not only for investment in worn-out engineering networks, but even for the implementation of current activities. The reasons are that in practice the regulatory body applies the indexation method to such enterprises, i.e. annually indexes previously approved costs. In addition, such enterprises are not attractive for investment due to their low profitability, since the investment component of tariffs at the expense of consumers of services is limited by the marginal index of tariff growth. Low profitability is also explained by the fact that the standard of profitability of enterprises of the agricultural sector, which is set by the regulatory body, does not take into account the investment needs of these enterprises. At the same time, the situation is particularly difficult for enterprises of small towns and rural settlements that are not only able to make their own budget investments or investments of municipal organizations, but also attract private investment. In accordance with the above, the authors of the article analyze the possibilities of improving the efficiency of the tariff policy of water utilities for the purposes of current development and investment. It is proposed to replace the traditionally used method of indexation of the approved costs of the previous periods on a more efficient method of economically justified costs, taking into account the investment component, which on the one hand, allow normative sectoral restrictions to avoid uncontrolled growth of tariffs for consumers, on the other hand, to give the utilities the possibility of attracting investments from the budget and commercial sources.
|Translated title of the contribution||TARIFF FORMATION AS A BASIS FOR EFFECTIVE FINANCIAL STRATEGY OF WATER SUPPLY AND SEWERAGE ENTERPRISES|
|Number of pages||9|
|Issue number||5 (102)|
|Publication status||Published - 2020|
- 06.00.00 ECONOMY AND ECONOMIC SCIENCES
Level of Research Output
- VAK List