THE IMPACT OF TARIFF FORMATION ON THE SUSTAINABLE DEVELOPMENT OF THE GAS SECTOR OF UKRAINE

Iryna METOSHOP, Oleksandra-Anna METOSHOP

METOSHOP I., METOSHOP O.-A. (2023), THE IMPACT OF TARIFF FORMATION ON THE SUSTAINABLE DEVELOPMENT OF THE GAS SECTOR OF UKRAINE.
PHILOSOPHY, ECONOMICS AND LAW REVIEW. Volume 3, no. 2, 88-102

DOI: 10.31733/2786-491X-2023-2-88-102

 

Abstract. The sustainable development of the gas sector and the formation of tariffs are closely interrelated, namely, adequate and stable tariffs stimulate investors to develop new technologies and infrastructure, which in turn contributes to the sustainable development of the gas sector. Adequate tariffs reflect the cost of implementing new effective technologies, improving environmental standards, infrastructure development, and modernization. However, due attention is not paid to the issue of tariff formation in the gas sector as an element of sustainable development. That is why the purpose of the study is to study the impact of tariff formation on the sustainable development of the gas sector of Ukraine.

The study outlines the importance of tariff formation for the sustainable development of the gas sector of Ukraine. In particular, it is stated that correctly formed tariffs should provide sufficient profit to support investments in the development and modernization of gas infrastructure. This helps to ensure a reliable supply of gas to consumers and to expand opportunities for the development of the energy sector. Setting differentiated tariffs can encourage consumers to use less gas and switch to more ecologically clean types of energy. Taking into account the emissions and impact on the environment contributes to the reduction of greenhouse gas emissions and other negative effects. Gas tariffs also have an impact on the social condition of the population and enterprises.

The research also analyzed the legal framework governing sustainable development in the countries of the world and Ukraine, and their relationship with the oil and gas sector of the economy. The peculiarities of tariff formation in European countries and Ukraine are considered and various methodologies used in European countries are highlighted, namely, those based on: regulated costs (cost-of-service); regulated revenue norms (revenue-cap regulation); under the responsibility of the gas pipeline operator (incentive-based regulation).

An analysis of the dynamics of gas sales on the market and for Ukrainian consumers, as well as the dynamics of gas transportation tariffs, was carried out. It showed a significant decrease in prices on the market and a relatively small decrease in tariffs for Ukrainian consumers. However, tariffs for the population remain lower than market prices due to their own production.

The main determinants influencing the formation of tariffs in gas transportation are identified, including geographic location, availability of natural resources, the degree of development of transport infrastructure, gas supply, and demand, competition in the gas transportation market, price trends, contractual conditions of service customers, regulatory policies and regulatory gas market requirements, costs related to gas transportation, investments in infrastructure development and maintenance, etc.

On the basis of the conducted research, the main aspects of the formation of gas tariffs to ensure the sustainable development of the gas sector have been established, namely, ensuring investment for innovation and development of gas enterprises, covering the costs of infrastructure and modernization, balancing economic and environmental aspects, reducing risks for investors, developing alternative energy sources, flexibility and adaptation to change, social impact and provide guarantees for consumers.

Ключові слова: gas sector, tariff, tariff formation, sustainable development, determinants, price.

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