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Cost Planning As The Tool Of Regulation Of Natural Monopolies

Author

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  • Raisa Adarina

    (Gorno-Altaisk State University, Russia)

Abstract

The article considers cost planning methods in activity of the utility companies. Particular focus is given to features of two methods - cost-based planning of utility expenses and normative-based planning. The author concludes that the optimal choice of method should count for the institutional factors (incomes of consumers, financial sustainability of utilities company, availability of supportive infrastructure), and nature of expenses (current or investment expenditures).

Suggested Citation

  • Raisa Adarina, 2010. "Cost Planning As The Tool Of Regulation Of Natural Monopolies," Perspectives of Innovation in Economics and Business (PIEB), Prague Development Center, vol. 5(2), pages 86-88, June.
    • Handle: RePEc:pdc:jrpieb:v:5:y:2010:i:2:p:86-88
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    More about this item

    Keywords

    Public utilities; municipal economic; planning of cost; regulation.;
    All these keywords.

    JEL classification:

    • L97 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Utilities: General
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy

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