Cross subsidizing in the power industry

The currently urgent issue of use of the mechanism of cross subsidizing in the branches of natural monopolies is examined in the article. This subject is discussed at many scientific conferences and industrial meetings. The main conceptual aspects of this phenomenon are stated in the article; the review of its use in the electric power engineering is provided, as well as the results of research of pricing for various groups of consumers of the electric power on the example of the Novosibirsk region. The government of Russia declares an unambiguous position about the need of elimination of the cross subsidizing; however, the use of cross subsidizing for many regions is the emergency measure of social protection of some groups of consumers; and elimination of the phenomena requires serious examination.

cross subsidizing, pricing for electric power, tariffs for electric power users, energy saving, energy efficiency, projects financing, funding sources, energy service contract, energy intensity, energy saving potential