Cost planning as the tool of regulation of natural monopolies
Cost planning as the tool of regulation of natural monopolies

Summary/Abstract: The article considers cost planning methods in activity of the utility companies. Particular focus is given to features of two methods - cost-based planning of utility expenses and normative-based planning. The author concludes that the optimal choice of method should count for the institutional factors (incomes of consumers, financial sustainability of utilities company, availability of supportive infrastructure), and nature of expenses (current or investment expenditures).

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