This article highlights the issues of forming and regulating the prices of public utility services in Slovenia in light of recent regulatory changes in this area. By passing the Decree repealing the Decree on the Formation of Prices for Basic Utility Services in July, the government ceased to control basic utility service prices, transferring the responsibility for handling and approving proposals for price changes to local communities. Under circumstances when the conditions necessary for liberalization of public utility services have yet to be established, liberalization may lead to even greater anomalies in this area, with further negative consequences for the economy as a whole. Participation in education and attained education have a positive impact on social welfare and social cohesion, as well as on economic development. Individuals with a higher level of formal education tend to have higher earnings than others and are less likely to become unemployed.
selected topics Slovenian Economic Mirror, July-August 2009 27 Selected Topics Formation and control of prices of public A survey of systems providing public utility services in some utility services in Slovenia of the old EU Member States shows that prices of these services are formed taking account of all costs, as stipulated This chapter highlights the issues of forming and regulating by EU directives, and that in most countries pricing is the prices of public utility services in Slovenia in light of the responsibility of local communities, yet with certain recent regulatory changes in this area. By passing the arrangements or mechanisms for regulation. In Italy, public »Decree repealing the Decree on the Formation of Prices utility services are controlled by the government according for Basic Utility Services« in July, the government ceased to benchmark costs, inflation rate and productivity to control basic utility service prices, transferring the growth. In Portugal, they are controlled in a similar way, responsibility for handling and approving proposals for based on a comparative analysis of providers conducted price changes to local communities. Even though the by an independent body. Also in Germany, prices are practice of all decisions being made by the government formed and regulated under the concept of benchmark was not appropriate either, the transfer of responsibilities prices, as they are in Denmark, which is also introducing a may, given the absence of an appropriate pricing higher level of competition in the provision of services. In methodology and a body monitoring its execution, not Austria, prices are capped by the law governing subsidies result in a long-term solution to the public utility pricing for these activities. No special control mechanisms are problem. in place in France. Prices are the responsibility of local communities, though services are mainly carried out by Since the beginning of the 1990s, pricing of public utility private enterprises. When overall inclusion might lead to services has been controlled by the government. As with high price rises, a system of subsidies is applied. In Great this type of activity the enterprise or entity that carries Britain, public utility services are also carried out by the out the activity independently has a monopoly on that private sector. They are controlled by an independent body activity or a controlling position in the sector, and as setting the price rise ceiling for every 5-year period, while these activities are essential for satisfying the needs of waste collection is controlled by the government; the aim individuals and companies, cost efficiency in Slovenia of the control is to encourage a reduction in costs. In the was ensured through a mechanism of formation and Netherlands, prices of services cover all costs. Services regulation of prices. Up to the middle of this year, are mainly provided by public utility enterprises, which prices of public utility services were regulated at the are, along with the price policy, controlled by regional state level. This arrangement was focused at preventing authorities. In Spain, water supply is fairly liberalised, but monopolistic behaviour of service providers and at price investment costs are nevertheless covered by the state. regulation reflecting the costs of service provision and Prices of water supply do not cover the costs of service enabling normal functioning of enterprises. Price rises provision and are regulated at the regional level. were only allowed
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