Heating Tariff System In Donetsk

University essay from KTH/Industriell ekonomi och organisation (Inst.)

Author: Victor Ageyev; [2011]

Keywords: District heating; tariff; Ukraine; Donetsk;

Abstract:

In different countries, such as Ukraine and Sweden, there have been differences in the way of administrating the systems which dictate the way of living and the way the societies function. Different approaches have been adopted over the time when it came to setting up the rules for how the state´s vital organizations, such as tax administration, health care, police, army, education system and many others should work and function. The idea in many modern countries is the same, but the ways and procedures can differ a great deal from country to country. This applies to the sphere of district heating services as well.

The purpose of this thesis is to gain understand with the help of economic theory why heating tariffs are managed in a country that has had transition from plan economy to market economy the way they are, and how the management of heating tariffs could be improved when taking into account the experience of a country with long established market economy. During field studies performed in Sweden and Ukraine, particularly in the city of Donetsk, a comparative analysis of the two heating tariff systems have been performed in order to outline and highlight the differences between them and to answer the main questions of the study.

The results include the status report of the situation concerning the district heating tariff systems in Sweden and Ukraine, comparative analysis of the two systems and suggestion on improvements of the district heating tariff system in the city of Donetsk. The outcomes and suggested improvements do not provide the full picture and all the aspects of the situation, due to the fact that more extensive studies, involving larger resources, would have to be conducted in the area. However, the report provides a good starting point for further studies within the field of district heating tariffs in Ukraine and Sweden.

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