What model of heat market is needed for Ukraine

Volodymyr Maistryshyn, Oleksandr Dombrovskyi, Georgiy Geletukha, ZN.UA, N43-44, November 19, 2016.

In Ukraine, district heating market consists of utility companies, which combine production, transportation and supply of heat, and also provide their customers with service of hot water and heating.

Activities in the field of heating and belongs to the monopoly regulated by the state (NKREKP) – licensing, tariff setting and monitoring of such companies. However, the desire of central and local authorities to satisfy consumers often comes up against a wall of political “unwillingness” and their own economic interests.

The main goal of a competitive market is to protect the economic interests of consumers of thermal energy. It is obvious that the existing monopoly position does not contribute to production efficiency, does not reduce cost of thermal energy, as well as does not improve the quality of services and does not contribute to the renewal of fixed assets.

You can read more in the article “What model of heat market is needed for Ukraine” at ZN.UA (in Ukrainian).