Tariff Setting for Natural Monopolies in a Digitalized Economy

Abstract

The aim of the article is to justify the need for changing approaches to tariff setting due to the impact of digitalization of the economy on all production processes, using the example of enterprises specializing in transportation of crude oil. It is noted that the pricing policy of Ukrainian enterprises is still quite often implemented in an unsystemic way and without due professional knowledge, in particular, enterprises use a costly approach to pricing; when pricing, customer demand and competitor prices are not considered; price is used regardless other elements of the marketing mix; prices are not adapted to changes in market conditions. The analysis of the methodology of tariff setting for enterprises which are natural monopolies is carried out, using the example of UkrTransNafta OJSC of the group of companies Naftogaz of Ukraine. The attention is focused on the amount of rental charge. The establishment of the rental charge in US dollars with the tariffs set in hryvnas led to the fact that the rental rate for certain routes before the revision of tariffs was higher than the current ones. It is noted that the digitalization of the economy will lead to a decrease in tariffs for natural monopolies and an increase in their attractiveness since digitalization will become the main tool for achieving Ukraine’s strategic goal – increasing its GDP by 8 times, to USD1 trillion in 2030, and ensuring the well-being, comfort and quality of life of Ukrainian at the level above the average in Europe.

Keywords

• price
• tariff
• efficiency
• digitalization