Efficient regulation of Markets of natural monopolies

The economy of any state are natural monopolies because society produced such tactics behavior: rigid state control.

 Natural monopoly - industry, where long-term average costs reach a minimum only if one firm serves the whole market altogether. With natural monopolies, which are based on economies of scale, closely related to monopoly, based on possession of unique natural resources.

The idea of ​​monopoly regulation occurred very recently. Motivation for the introduction of state monopoly regulation to society is obvious. If the company is a monopoly in certain markets of goods and services, operates without restrictions from the outside, quickly offered her the price of goods / services are increasing and their quality is rapidly falling. Why try to better organize their work if there is no competition and your products / services still rozkupovuyutsya? Impending use of the most progressive technology.

 In such a situation without government regulation can not do, otherwise it will lead to degradation of monopoly and a negative impact on consumers. It would seem that social state has put strict limits on monopoly - and the consumer will be satisfied. However, to meet consumer and identify giant for extremely low prices and tough working conditions, too, is not the right solution.

Law of Ukraine "On natural monopolies. The total essence of the Law

 Under pressure from powerful forces interested in the preservation of losing control of the sphere, the law would not take long.

 Law of Ukraine on natural monopolies defines legal, economic and organizational principles of state regulation of natural monopolies in Ukraine.

 The purpose of this Act is to ensure the effective functioning of markets that are natural monopolies, based on balancing the interests of society, natural monopolies and consumers of their goods.

The bodies that regulate the activity of natural monopolies

 In world practice, happened several ways of forming a system of regulation, which may make such regulation:

 - the relevant sectoral ministries;

 - competition authorities;

 - independent regulatory commission.

 Ukraine still not selected a model of reform. There is a practice of adjusting the first type - branch offices, and who are the subjects of regulation, and agencies that directly manage enterprises monopolies and related markets. Intersection of regulatory and commercial functions, the combination of management and business often leads to the fact that these agencies unwittingly trying to help and contribute to certain subjects, and this leads to discrimination and other market participants in violation of the principle of equality among all the competition.

In fact, antitrust authorities should exercise control function. Reliance on antitrust authorities to control certain parameters in the production monopolies distract them from the main task and hinders the effective performance of their primary responsibilities - the protection of competition.

 Ukraine has rather a scattered system of state regulation of natural monopolies, denying the effectiveness of its regulation. As a result, Ukraine has not yet created the necessary network of national sectoral commissions regulating natural monopolies. There are only National Energy Regulatory Commission and National Regulatory Commission.