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Possible Effects of Sanctions on the Components of the Electricity Price
[Возможные Эффекты Санкций Для Составляющих Цены На Электроэнергию В России]

Author

Listed:
  • Eugenia M. Miller

    (Russian Presidential Academy of National Economy and Public Administration)

Abstract

The sanctions imposed against Russia in the spring of 2022 can affect the growth of electricity prices, both for industrial consumers and for the population, through several channels: through higher prices for gas, coal and diesel fuel; through higher prices for equipment and technology; through acceleration of inflation. Under current conditions it seems reasonable to limit the growth of prices by reducing or completely excluding from the wholesale electricity price the mark-ups related to interregional and inter-branch subsidies. The research was conducted as part of the grant «Territorial and Sectoral Leadership» of the federal program «Priority 2030» received by RANEPA in 2021 («Preparation of expert and analytical materials containing proposals for developing approaches to transforming the mechanisms of direct and indirect subsidies in the Russian fuel and energy complex in the context of the global energy transition»).

Suggested Citation

  • Eugenia M. Miller, 2022. "Possible Effects of Sanctions on the Components of the Electricity Price [Возможные Эффекты Санкций Для Составляющих Цены На Электроэнергию В России]," Russian Economic Development, Gaidar Institute for Economic Policy, issue 12, pages 28-32, December.
    • Handle: RePEc:gai:recdev:r22102
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    More about this item

    Keywords

    electricity prices on the retail market; influence of the sanctions; capacity provision agreement;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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