“Экономические
науки”/3.Финансовые отношения
IBBS: 339.13.012
Valeriya Kuvardina
Second year student
Economic Science Faculty
Specialization: Finance and Credit with the knowledge of English
Petro Mohyla Black Sea State University
Tutor: Head of the department of Professional
English Education
Problems of natural monopolies
activity regulation in Ukraine
Actuality
The natural
monopolism significantly differs from the monopoly relations that have arisen
from concentration and centralization of the capitals in the process of
competition. Actuality of this problem is characterized by the strongly
influence of natural monopolism on market relations within the country. Problems
of state regulation of social-economic processes are directly connected with a
question of natural monopolies regulation.
Connection with scientific research
The reasons of natural monopoly emergence and development were investigated
in works of economic science recognized classics such as A.Kurno, J.Mile,
K.Marx, L.Valras, P. Samuelson, S. Fischer, J. Shumpeter.
Economic aspects,
legislative control and regulation problems of natural monopolies were
investigated in the works many foreign scientists: Keynes D., Cue M, Kogan A.
Katyer F. Lundberg E. Madden K. Meydner R., Müller Yu., Nyyuberi D.,
Ordover Ya. Problems of natural monopolies state
regulation were described in numerous scientific publications of D. Bjyukenen,
E.de Soto, R. Kouz, P. Milgrom, D. Nort, M. Olson and O. Uilyamson.
Goal: To research the
peculiarities of natural monopolies’ state regulation, its normative
legislation in Ukraine and to find out it’s limitations.
Task: To research the
peculiarities of natural monopolies state regulation and its law base in
Ukraine; to determine and explain the main directions of improving
the regulatory legislation.
Natural monopoly – a distinct type of monopoly that may arise when
there are extremely high fixed costs of distribution, such as exist when
large-scale infrastructure is required to ensure supply. Such situations occur
usually in case of utilities or where a market can support only one producer
(because the decreasing returns to scale make the optimum plant size large in
relation to the demand) or where long-range average total cost is declining
with higher output throughout the range of the possible demand. The researchers
conducted by Antimonopoly committee of Ukraine, showed that Ukrainian natural
monopolies markets make the most numerous group in system of the domestic
monopolized markets. And, despite natural for the world practice tendency of
decreasing natural monopolies markets’ number by their transformation in
exclusive or competitive, in Ukraine statistical data testify to the reverse.
The reason of monopolized enterprises number increasing is the
monopolized markets number increasing at the regional level. Effective
development of natural monopolies sphere is directly connected with
determination of branch and nation-wide competition policy main directions for
the short-term and long-term periods [1]. Object of natural monopolies subjects'
activities regulation are:
- The prices (rates) for goods which are made by natural monopolies
subjects;
- Access of customers to goods which are made by natural monopolies
subjects.
Fields of natural monopolies activity are the following markets:
- Transportation of oil
and oil products through pipelines;
- Transportation of
natural and oil gas through pipelines, its distribution;
- Transmissions and
distributions of electrical energy;
- Using of dispatcher
services, stations and other objects of infrastructure which provide public
railway transport movement;
- Air traffic control;
- The centralized water-supply
and water disposal;
- The centralized
delivery of thermal energy.
The most prominent representatives of the monopolies
in Ukraine are the following
companies: Ukrtelecom, Ukraine's
Naftogaz, Ukrspecexport, Energoatom, Ukrzaliznitsya [3].
New practice for Ukraine is state
regulation of natural monopolies activities which purpose consists in support
of subjects effective functioning in this sphere, and
balancing of society, enterprises and customers interests.
Official recognition of natural monopoly in domestic economy by the state is
fixed in the special legislation which can be classified as follows: the laws
which subject of regulation are exclusively natural monopolies and their
subjects activities (Law "About Natural Monopolies"); the laws
regulating natural monopolies certain spheres ("About pipeline
transport", "About oil and gas"); laws which make the
competitive legislation, however which separate provisions also are applied by
natural monopolies ("About protection of the economic competition",
"About Antimonopoly committee of Ukraine").
The concept "natural monopoly"
and legal bases for the modern system of state natural monopolies regulation,
its economic and organizational principles were fixed in the Law of Ukraine
"About natural monopolies".
The law "About Natural Monopolies"
provided price (rates) control on natural monopolies goods and services. In
Ukraine the price regulation mechanism is regulated
by resolutions of the Cabinet of Ukraine [2].
The following issues are to be counted in the process
of price forming on natural monopoly subjects’ goods:
- expenditures which according to laws on the taxation belong on bulk
expenses of production;
- taxes and fees (mandatory payments) in budgets and in the state trust
funds;
- expected profit on possible implementation of goods at the different prices
(rates);
- remoteness of different customers groups from goods production place;
- compliance of quality of goods which are produced to customers' needs;
- state grants and other forms of the state support.
In the long-term
period state regulation of natural monopolies pricing leads to debt formation
of budgetary organizations and population payments. The conducted researches of
natural monopolies functioning peculiarities in Ukraine revealed such problems
as an inefficiency of the pricing mechanism, poor services quality, low
technologies and relatively the high level of customers' debt for the received
services. A key element of reforming and sustainable development of the natural
monopolies markets and activities efficiency increasing there is mechanism of
price regulation. In the price regulation process it is necessary to observe
the recognized principles which provide achievement of the following purposes:
economic efficiency, justice, services universality. The Ukrainian regulatory
organs' task at the present stage is to increase efficiency of rates regulation
for the services implemented by natural monopolies subjects [4].
Regulation of
natural monopolies subjects' activities is based on such principles:
- publicity and openness of regulation procedures;
- stimulation of goods quality improvement and demand satisfaction for
them;
- support of the customers rights protection.
Analyzed antimonopoly regulation in the natural monopolies sphere can be
considered as incomplete. One of the main problems of feeble antimonopoly
regulation - excess influence of regulating and supervisory authorities. The
state is often considered to be the reason of monopoly position of enterprise
abusing.
Such behavior is caused by regulating policy and
institutional conditions imperfection in which branches of natural monopolies
function. The state in the sphere of natural monopolies behaves as the subject
– the owner. From the neoinstitutional economic theory point of view such
behavior can be considered, as aspiration to receive a rent. Ineffective actions of the state on property
rights distribution are explained by aspiration to receive a rent. For elimination
of the specified shortcomings it is necessary to reduce
number of authority branch for regulation and
monitoring and to increase their responsibility for their actions [5].
Conclusion
The main
peculiarities of natural monopolies state regulation in Ukraine were defined in
the article. The main directions of improving regulatory legislation were
determined.
The effectiveness of natural monopolies may increase due to the conclusion of a formalized agreement between the
public authorities and managers, with
the definition of the priority enterprise objectives.
Reference:
1. Базилевич В.Д. Природні монополії / В.Д. Базилевич, Г.М. Филюк – Київ, «Знання», 2006. –367 с.
2. Закон України «Про природні
монополії»: №1682 – III від 20.04.2000 р.// Відомості Верховної Ради України.
–2000. – № 30. – Ст.238.
3. Кравченко Ю. Рынки естественных монополий - эффективное
регулирование / Ю. Кравченко // Экономика Украины: Полит.-эконом.
журн. М-ва экономики и по вопр. Европ. интеграции Украины, М-ва финансов
Украины и Нац. Акад. Наук Украины – 2006.
- № 6 – С. 12-19.
4. Матвеева Н.А. Принципы государственного
регулирования естественных монополий // Современные научные исследования и
инновации. – Ноябрь 2011. № 7 // [Электронный ресурс]. - [Режим доступа]: http://web.snauka.ru/issues/2011/11/5315
5. Факторы реформирования механизма
государственного регулирования естественных монополий в Украине // [Електронный ресурс]. - [Режим доступа]: http://cci.sumy.ua/information/articles/97/387/