№ 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)

Download

Downloads :597

1. Cabinet of Ministers of Ukraine. (2017). About execution of Association agreement between Ukraine, of the one part, and the European Union, the European atomic energy community and its member states, of the other part (Decree No. 1106, October 25). Retrieved from eu-ua.org/plan-zakhodiv-z-vykonannia-uhody [in Ukrainian].
2. European Union. (2009). Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC. Retrieved from eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32009L0072.
3. European Union. (2006). Directive 2005/89/EC of the European Parliament and of the Council of 18 January 2006 concerning measures to safeguard security of electricity supply and infrastructure investment. Retrieved from eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32005L0089.
4. The European Commission. (2013). Commission Regulation No 543/2013 of 14 June 2013 on submission and publication of data in electricity markets and amending Annex I to Regulation (EC) No 714/2009 of the European Parliament and of the Council. Retrieved from eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2013:163:0001:0012:EN:PDF.
5. Cabinet of Ministers of Ukraine. (2018). Action plan for the implementation of the “Energy sector reform (up to 2020)” of Energy strategy of Ukraine until 2035 “Safety, energy efficiency, competitiveness” (Decree No. 497-р, June 6). Retrieved from zakon.rada.gov.ua/laws/show/497-2018-%D1%80 [in Ukrainian].
6. Cherkashyn, I. (2014, July 6). Consume energy wisely! LIGA.Blogs. Retrieved from blog.liga.net/user/icherkashyn/article/15012 [in Ukrainian].
7. Pereira, G. I., Specht, J. M., Silva, P. P., & Madlener, R. (2018). Technology, business model, and market design adaptation toward smart electricity distribution: Insights for policy making. FCN Working Paper, 03. Retrieved from www.fcn.eonerc.rwth-aachen.de/global/show_document.asp?id=aaaaaaaaabapxzs.
8. Schlesewsky, L., Winter, S. (2018). An empirical investigation on the distributional impact of network charges in Germany. CIW Discussion Paper, 4. Retrieved from www.econstor.eu/bitstream/10419/179922/1/1024412008.pdf.
9. Montt, G. E., Maître, N., & Amo-Agyei, S. (2018). The transition in play worldwide employment trends in the electricity sector. ILO Research Department Working Paper, 28. Retrieved from ilo.userservices.exlibrisgroup.com/view/delivery/41ILO_INST/1252
307640002676.
10. Best, R., Burke, P. J. (2018). Electricity availability: A precondition for faster economic growth? CAMA Working Paper, 30. Retrieved from cama.crawford.anu.edu.au/sites/default/files/publication/cama_crawford_anu_edu_au/2018-06/30_2018_best_burke.pdf.
11. European Commission. (2016). Clean Energy For All Europeans: Communication 860 final. Brussels. Retrieved from ec.europa.eu/energy/sites/ener/files/documents/com_860_final.pdf.
12. Iberdrola. (2017). Electricity generation and distribution: their effect on the environment, control and correction. Retrieved from www.iberdrola.com/wcorp/gc/prod/en_US/sostenibilidad/docs/efectos_energia.pdf.
13. European Commission. (2016). Better Regulation Toolbox. Retrieved from ec.europa.eu/smart-regulation/guidelines/docs/br_toolbox_en.pdf.