PROBLEMS OF METHOD ECONOMICALLY FEASIBLE EXPENSES (RATE) WITH PRICING IN ELECTRICITY

Abstract

In this article it is proved that the method of economically reasonable expenses when determining tariffs in the electricity industry is the most effective, because it is a certain balanced decision that meets the interests of energy producers and consumers in terms of electricity prices continued growth. As used in this method of structuring the provisions of legal acts allowed the authors to conclude that the application of the method of economically substantiated expenses based on the rules governing accounting. However, the current legislation on pricing in the power allows the use of tax rules in the formation of the list of expenses. In this part of the costs to be included in the fare, for tax purposes in respect of article 270 of the Tax Code, to the expenses for accounting purposes are not relevant. As a consequence - inflated rates to be paid by consumers, and accounting (financial) statements of the organizations of electric power industry in terms of revenue recognition would be distorted. Based on the above, the authors recommended that by making the necessary changes to the existing legislation on pricing in the electricity industry, clearly determined on the basis of legislation in the field of accounting and tax accounting in forming a list of expenses to be included in the tariff.