№ 9/2018

Fìnansi Ukr. 2018 (9): 112–129

ECONOMIC SECURITY: THEORY, PRACTICE, MANAGEMENT

PETRAKOV Jaroslav ¹

¹Chernihiv National University of Technology
OrcID ID : https://orcid.org/0000-0001-9123-0642

Fiscal tools application for electricity sector modernization in Ukraine: from normative design to impact assessment

Ukrainian legal base approximation to the EU laws in electricity sector requires a deep and comprehensive understanding of change in business models that may impact the structure of sector generation and the pace of its further development. The research is aimed at reviewing approaches to fiscal tools use during the energy market reform in Ukraine and assessing the impact of postponed electricity modernization on the level of energy and fiscal security of the country. We have analyzed the sequence of adaptation of technical regulations and EU Directives in the Ukrainian legislation, specifying the need for continuous communication with stakeholders for feedback and quantitative estimation of their potential losses from rapprochement with the EU energy markets. A comparative analysis of the list of activities (governmental and expert) concerning the electricity sector modernization and energy efficiency improvement explores their advantages and loopholes. We ground the necessity of adapting the EU methodology for impact assessment of the electricity sector modernization of Ukraine to the factor of significant uncertainty both in the regulatory environment and in the markets themselves. Existing methodological approaches are analyzed together with impact assessment of fiscal tools application under non-stationary economy (with regards to scenario models of electricity sector modernization). On the basis of the EU methodology for impact assessment, we develop and substantiate recommendations for fiscal tools impact assessment, in particular on the expected/deferred modernization of Ukraine's electricity sector in the context of country’s energy and fiscal security. The main research findings show that there are excessive expectations of quick normative sector transformation without regard to the technical and sectoral life-cycle with weak communication support and the lack of stakeholders’ voluntary agreements; there remains high uncertainty for modernization efforts that hinders the pace of reforms and provides different views on the side of stakeholders. Legal approximation to the EU laws should be substantiated with comprehensive and joint positions of stakeholders that should be based on effective impact assessment, prepared under the EU methodology.

Keywords:electricity sector, energy security, modernization, fiscal security, fiscal tools, capacity

JEL: E62, H23, O13, O23, Q42, Q47, Q48

PETRAKOV J. . Fiscal tools application for electricity sector modernization in Ukraine: from normative design to impact assessment / J. . PETRAKOV // Фінанси України. - 2018. - № 9. - C. 112-129.

Article original in Ukrainian (pp. 112 - 129)

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