Ways to Improve the Mechanism of the State Regulation of Investment Activity in Heat Supply

Abstract

The article is aimed at substantiating the measures to improve the state regulation of investment activities of heat supply companies, aimed at intensifying work on the modernization of district heating systems. In Ukraine, the need for state regulation of activities (including investment) in the field of heat and power engineering is established by the Law of Ukraine “On Heat Supply”. Such regulation is carried out by adopting regulations that are mandatory for use by all economic entities in the field of heat supply, and by providing control functions to the national regulator and local governments. The article analyzes Procedures for development, approval, coordination and approval of investment programs of municipal heat companies which are now in force in Ukraine. The analysis of current regulations has made it possible to identify the main problems of the state regulation of investment activity: imperfection of planning; complexity of development, justification, approval and control of investment programs; and a complicated mechanism for financing investment activities. According to the results of the research, the following ways to improve the state regulation of investment activity of the enterprises working in the municipal heat power engineering are offered: transition from short-term to medium- and long-term planning of investment activity; simplification of the current procedures for approval and adoption of investment programs; further decentralization of investment management and granting all powers to local governments; dismissal of the obligation for each measure and investment program as a whole to be economically efficient. A local authority should be entitled to independently choose the priorities for designing an investment program, e.g.: to improve the quality or reliability of heat supply, or to reduce tariffs; to simplify procedures of monitoring the implementation of investment programs, to give a heat supply company more independence in spending funds received under the investment program.

Keywords

• thermal energy
• state regulation
• investment activity