The paper aims to test the hypothesis whether high tariffs lead to a high efficiency of electricity suppliers. The authors test this hypothesis on a case of 29 Ukrainian electricity distribution companies. Using the data envelopment analysis and correlation coefficients, grouping the super-efficiency scores, the authors found that in most regions of Ukraine the increase in tariffs no longer leads to increased efficiency. This indicates a weakness of tariff policy in most of the electricity distribution companies. The case showed that rising tariffs can cause a decline in revenue, net income and an increase in accounts payable. This does not allow the electricity distribution companies to provide high efficiency. Apart from this, despite improving the financial performance of most companies, the electricity distribution industry in Ukraine as a whole remains unprofitable. However, the high percentage of foreign investors in this industry indicates a significant potential for increasing the efficiency 126 of Ukrainian energy companies. The government control of the electricity distribution companies more often provides medium efficiency, while the management by foreign investors often provides a high efficiency. The absence of the major owner and the presence of blocking stakes in any investor (government, domestic or foreign investors) has a negative impact on the efficiency of energy companies. Although the case is limited to one country and 29 companies, this study can serve as a model for wider testing of the research hypothesis in other markets and countries.
The research was pointed out the effectiveness of the unified social contribution model in contrast to the financial amount collected to the Pension Fund and debts raised from the unsteady proportion of tax burden on different types of business. A practice that was analyzed in research has shown that this insurance model was not suitable for many companies and employees. Thus, the diagnostics of calculating the unified contribution debt results according to the current legislation proved low efficiency of the current procedure, which requires further improvement both in the legislative and executive planes. As an improvement of this theoretical background, it could point to the number of debts and quantities of claims brought to the economic entities and entrepreneurs. It is crucial to adopt international experience to create an effective internal system for tax collection, so we aimed to shed light on this problem of the tax burden faced by businesses and households by comparing them with similarly constructed taxes in European countries.
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