COMPETITIVE MARKET FOR HEAT SUPPLY

Visnyk LNAU: Economics of AIC 2018 №25: 44-48

COMPETITIVE MARKET FOR HEAT SUPPLY

Stanko T., Candidate of Economic Sciences
Lviv National Agrarian University

https://doi.org/10.31734/economics2018.25.044

Annotation

The paper studies the issues of formation of market relations in the sphere of district heating. In the article the analysis of researches of domestic and foreign scientists in regard to the above issues. The works of scientists shows the possible model of development of market of thermal energy in district heating sector according to the form of organization of competition. In the paper it notes that the competition set out in the legislative framework can become the driving lever of positive trends in the heat. The scheme of heat supply, which is currently alternative after introduction of a competitive environment in the sphere of heat supply. The structure of energy production by types of fuel, namely natural gas, coal, nuclear, alternative and renewable energy. According to the heating circuit, which exists today in Ukraine the vast majority of manufacturers and suppliers of thermal energy belong to the state or municipal ownership. These organizations are monopolies, as combine production, transportation and supply of heat. Due to the fact that the entry into the industry is blocked, the enterprises Teplokommunenergo not interested in improving the quality of their services. It uses the most expensive energy source - natural gas. Instead, this paper proposes to introduce the model of "single buyer" in the heating sector.. the Essence of this model is that heat producers sell it to one buyer, namely the company, which serves the heating system. This company, in turn, delivers thermal energy to the end user. In addition, a key condition of competition in the market of heat there is unrestricted access of independent producers to heat supply networks. The main advantages of introducing competition in the heat market. Also pointed out that according to Ukrainian legislation, heat-generating organization shall have equal rights with regard to joining the heat network and transportation of the above mentioned modes of energy. Conclusions on the feasibility and prospects of creation of a competitive market in heat supply of Ukraine.

Key words

biofuels, competition, monopoly, heat supply

Full text

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Link

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ISSN 2524-0862