Development of the competitive environment on the municipal heat engineering market of Ukraine: foreign experience and Ukrainian realities

Mykhailo Mykolayovych Fedirko, Juliia Olexandrivna Kryvokhyzha


Introduction. The research presents the justification for measures to develop a competitive environment on the market of municipal heat and power engineering in Ukraine and qualitative transformations in this area. It is indicated on the problem of the entry of new entities on the market of thermal power engineering and a number of factors that cause it. The identified problem is reduced to the development on the basis of study and adaptation of international experience of the functioning of competitive heat supply rhythms, practical recommendations for the development of a competitive heat supply market in Ukraine.

Purpose. The article aims to study the foreign experience of functioning of the competitive district heating market and its adaptation to the Ukrainian realities for the formation of a competitive environment in the district heating market of Ukraine.

Method (methodology). In the process of research, the following methods have been used: method of synthesis, method of analysis, method of comparison, method of synthesis and method of induction.

Results. In this paper, the following concepts have been scientifically substantiated: competitiveness, third party access to the networks, financial unbundling and property unbundling. Proposals for increasing competition within the framework of district heating systems have been developed. They are justified on the basis of the following reasons: increasing competition and the share of renewable fuels in heat production, benefiting from the existing infrastructure of the heat supply network without the risk of investing in their own infrastructure, etc. The models, which promote the introduction of European experience of development of a competitive environment on the market of heat supply according to the Ukrainian market, are considered. Accordingly, it is selected a model that can perfectly be implemented in the Ukrainian heat supply market. The approach of increasing the efficiency of competitiveness through a number of measures is proposed. It concerns the development of a transparent mechanism for the connection of independent producers to the grids, requirements for the establishment of individual tariffs by type of activity, bonding of ownership of heat generation.


third-party access; financial unbundling; property unbundling; multi-fuel mode; competitive environment; tariff policy

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Science Works Journal "Ekonomichnyy analiz"

ISSN 1993-0259 (Print)  ISSN 2219-4649 (Online) DOI: 10.35774/econa

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