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Energy Price Formation and Energy Consumption by Households as a Factor of Ensuring Energy Safety

Author

Listed:
  • Valeriy Prasolov

    (Financial University Under the Government of the Russian Federation, Russia)

  • Valery Bezpalov

    (Russian Economic University after G.V. Plekhanov, Russia,)

  • Svetlana Doguchaeva

    (Financial University Under the Government of the Russian Federation, Russia)

  • Rodion Rogulin

    (Vladivostok State University of Economic and Service, Russia,)

Abstract

The objective of the article was to analyze the issue of developing energy price formation by various countries in the context of component structure of the cost per energy unit for households. For conducting the research the principles Expenses + and Regulatory Asset Base were used. A methodological author s approach related to the estimation of pricing level for energy resources based on Energy Pricing Index was proposed. The highest gas prices are in Sweden, Denmark, Portugal, France and Ireland that relates not so much to gas market as to the prime cost of green electricity. The specific feature of the price policy in European countries is the establishment of higher gas prices for households than for industries. Unlike Russia, cross-subsidization has completely opposite content. The value of gas price in European countries does not depend on whether this country is its producer on its territory. However, there is an inverse relation between the production level of energy resources and the level of economic development. In view of the low EPI based on overestimate network costs and actual lack of the components differentiation of the fixed price, the low level of pricing efficiency is observed in Moldova, Ukraine and Serbia.

Suggested Citation

  • Valeriy Prasolov & Valery Bezpalov & Svetlana Doguchaeva & Rodion Rogulin, 2020. "Energy Price Formation and Energy Consumption by Households as a Factor of Ensuring Energy Safety," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 82-93.
    • Handle: RePEc:eco:journ2:2020-05-11
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    More about this item

    Keywords

    energy resource; green electricity; price formation; rent; sustainable development.;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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