Method of comparison of analogs in the Russian water supply: solution of problems or not

Метод сравнения аналогов в российском водоснабжении: решение проблем или нет

Agafonov, Dmitry (Агафонов, Дмитрий) () and Kuznetsov, Vasily (Кузнецов, Василий) ()
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Agafonov, Dmitry (Агафонов, Дмитрий): Russian Presidential Academy of National Economy and Public Administration
Kuznetsov, Vasily (Кузнецов, Василий): Russian Presidential Academy of National Economy and Public Administration

Voprosy upravleniya / Management Issues, 2020, 114-124

Abstract: In 2018, water supply and sanitation companies received a loss of 11.75 billion rubles. 80 % of organizations were operating at a loss. Depreciation of some objects exceeds 60 % and determines the need to attract investment. The solution may be to use the method of comparing analogs. Theoretically, this method encourages the regulated organization to reduce its own expenses. However, the practical application of the method of comparison of analogues may not ensure the achievement of the planned benefits. This problem is solved in the article. In this paper, the authors investigated the current working conditions of organizations in the field of water supply and sanitation. The necessity of optimizing existing approaches to state regulation of water supply tariffs is identified and justified. The authors described the mechanism of applying the method of comparison of analogs. The authors identified a limited use of the method of comparison of analogues in the field of water supply and sanitation. Tariff solutions were processed for these companies. As a result, the authors identified the predominance of tariff reduction as a result of using the method of comparison of analogues. This creates a threat to small networks: funds sufficient for servicing by the guaranteeing network provider may not be sufficient for small networks. As a result of the study, the authors came to the conclusion about the possibility of using the method of comparing analogues in the field of water supply and sanitation. However, the authors recommend paying attention to the experience of implementing the method of comparing analogues in the retail electricity market. In particular, the authors note the need to improve the forms and platforms of information disclosure and the need to disclose the methodology for determining basic regulatory values.

Keywords: method of comparison of analogs; water supply; tariff regulation; investment in water supply; housing and utilities; consumers (search for similar items in EconPapers)
Date: 2020
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