Heat Supply Reform: Consequences for the Consumers in the Far East

Abstract

The article overviews necessity of state regulation of heat energy supply and attempts to evaluate efficiency of suth regulation from the point of view of consequences for population as its main consumer. The author defines specific of features population that determine their behaviour as heat energy consumers. The population is only a receiver of heat supply and is limited in managing the volume of its consumption. The article estimates income possibilities of the population to pay for heat supply based on the example of southern regions and cities of the Far East. Even with in regulated tariffs the burden of payment on population remains high, especially for low-income groups, which is explained by both high tariff in the region and levels of consumption. Introduction of the new tariff regulation method based on the price of an “alternative boiler room” in the largest heat supply systems of the Far East will increase payments 1.7–3.1 times. This will potentially lead to growth of enterprises’ debt and higher volume of social support from the budget.