ORIGINAL PAPER
Do high tariffs provide high efficiency: a case of Ukrainian electricity distribution companies
1
Department of Management, International Humanitarian University, Ukraine
2
National University "Odessa Law Academy", Ukraine
Submission date: 2020-09-18
Final revision date: 2020-09-21
Acceptance date: 2020-09-21
Publication date: 2020-09-30
Corresponding author
Anatoliy G. Goncharuk
Department of Management, International Humanitarian University, Fontanska doroga 33, 65009, Odesa, Ukraine
Department of Management, International Humanitarian University, Fontanska doroga 33, 65009, Odesa, Ukraine
Polityka Energetyczna – Energy Policy Journal 2020;23(3):125-134
KEYWORDS
TOPICS
ABSTRACT
The paper aims to test the hypothesis whether high tariffs lead to a high efficiency of electricity suppliers. The authors test this hypothesis on a case of 29 Ukrainian electricity distribution companies. Using the data envelopment analysis and correlation coefficients, grouping the super-efficiency scores, the authors found that in most regions of Ukraine the increase in tariffs no longer leads to increased efficiency. This indicates a weakness of tariff policy in most of the electricity distribution companies. The case showed that rising tariffs can cause a decline in revenue, net income and an increase in accounts payable. This does not allow the electricity distribution companies to provide high efficiency.
Apart from this, despite improving the financial performance of most companies, the electricity distribution industry in Ukraine as a whole remains unprofitable. However, the high percentage of foreign investors in this industry indicates a significant potential for increasing the efficiency of Ukrainian energy companies. The government control of the electricity distribution companies more often provides medium efficiency, while the management by foreign investors often provides a high efficiency. The absence of the major owner and the presence of blocking stakes in any investor (government, domestic or foreign investors) has a negative impact on the efficiency of energy companies.
Although the case is limited to one country and 29 companies, this study can serve as a model for wider testing of the research hypothesis in other markets and countries.
METADATA IN OTHER LANGUAGES:
Polish
Czy wysokie taryfy zapewniają wysoką efektywność: przypadek ukraińskich firm zajmujących się dystrybucją energii elektrycznej
energia elektryczna, dystrybucja energii, efektywność, polityka taryfowa, przedsiębiorstwa, Ukraina
Celem artykułu jest przetestowanie hipotezy, czy wysokie taryfy prowadzą do wysokiej efektywności dostawców energii elektrycznej. Autorzy testują tę hipotezę na przykładzie 29 ukraińskich dystrybutorów energii elektrycznej. Korzystając z analizy obwiedni danych i współczynników korelacji, grupując wyniki super efektywności, autorzy stwierdzili, że w większości regionów Ukrainy wzrost taryf nie prowadzi już do wzrostu efektywności. Wskazuje to na słabość polityki taryfowej w większości przedsiębiorstw zajmujących się dystrybucją energii elektrycznej. Analiza pokazała, że rosnące taryfy mogą spowodować spadek przychodów, dochodu netto i wzrost zobowiązań. Nie pozwala to firmom zajmującym się dystrybucją energii na zapewnienie wysokiej efektywności.
Poza tym, pomimo pewnej poprawy wyników finansowych większości firm, cała branża dystrybucji energii elektrycznej na Ukrainie jest nierentowna. Jednak wysoki odsetek inwestorów zagranicznych w tej branży wskazuje na duży potencjał wzrostu efektywności ukraińskich firm energetycznych. Kontrola rządu nad spółkami dystrybucyjnymi energii elektrycznej częściej zapewnia średnią efektywność, podczas gdy zarządzanie przez inwestorów zagranicznych daje często wysoką efektywność. Brak głównego właściciela i obecność pakietów blokujących u któregokolwiek inwestora (rządowego, krajowego lub zagranicznego) ma negatywny wpływ na efektywność spółek energetycznych.
Chociaż przypadek ogranicza się do jednego kraju i 29 firm, to badanie może służyć jako model do szerszego testowania hipotezy badawczej na innych rynkach i w innych krajach.
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