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Digest Finance
 

Pricing in the contemporary electricity market: Theoretical considerations

Vol. 29, Iss. 4, DECEMBER 2024

PDF  Article PDF Version

Received: 10 October 2024

Received in revised form: 14 October 2024

Accepted: 28 October 2024

Available online: 26 December 2024

Subject Heading: RISK, ANALYSIS AND EVALUATION

JEL Classification: G32

Pages: 378-395

https://doi.org/10.24891/df.29.4.378

Liliya B. SUNGATULLINA Kazan (Volga Region) Federal University (KFU), Kazan, Republic of Tatarstan, Russian Federation
Lilia_sungat@mail.ru

https://orcid.org/0000-0002-4262-9259

Luiza Kh. ISLAMOVA Center of Advanced Economic Research in Academy of Sciences of Republic of Tatarstan (CAER AS RT), Kazan, Republic of Tatarstan, Russian Federation
ILH771127@gmail.com

https://orcid.org/0009-0003-9593-0103

Subject. This article examines and analyzes the theoretical aspects of the formation of prices for electricity and capacities of power supply companies.
Objectives. The article aims to examine fundamental approaches to price formation and consider the systems of intra-company management in the supply and sales sector of the electric power industry in order to identify the areas for developing the pricing concept of energy supply companies.
Methods. For the study, we used analysis and synthesis, generalization and comparison, and system reasoning.
Results. The article summarizes the classical approaches to pricing and characterizes the theoretical provisions regarding the possibility of their adaptation to the formation of the pricing policy of energy supply companies in present-day conditions. On the basis of streamlining the system of views regarding the formation of pricing policy, the article proposes conceptual provisions for price formation in the electric power industry in the form of a grid of price achievements, which helps energy supply companies modify the applied methods of price formation in current realities.
Conclusions and Relevance. The article concludes that it is necessary to synthesize different pricing approaches that integrate the specifics of the activities of energy supply companies in the changing business environment. This will help develop conceptual provisions for pricing in the electric power industry on the basis of a grid of price opportunities that takes into account the basic elements of the pricing system. The results of the study can be used for further theoretical research related to the electric power industry, taking into account the needs of market participants and consumers.

Keywords: pricing, electricity price, capacity price, product value, competition, cost, price achievement grid, delivery point cluster

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