THE RAILWAY TRANSPORT OF UKRAINE AS A SUBJECT OF NATURAL MONOPOLY: AN ECONOMIC AND LEGAL ASPECT

Author
, PhD. Student, Kharkiv, Pushinska, 77

In heading

 Law;

Signed print

 27.05.2016

Issues number

 2016 - № 2 (25)

Page

 216-229

Type of articles

 Scientific article

Code UDK

 346.242:656.2

ISSN print

 2411-5584

Abstract

 Problem setting. A significant level of the national economy monopolization, the ambiguous influence of monopolies on situations in the economic, social, and political fields of the country cause a need for search of ways for development of the similar organizations’ economic activity for the purpose of minimization of negative effects of their monopolistic position.
Recent research and publications analysis. Scientists such as V. Bazylevych, N. Belousova, V. Venher, I. Halytsia, A. Horodetskyi, Ya. Zhalilo. A. Kolhanov, V. Kryvutskyi, A. Frenzel, A. Yudanov, L. Karbovnyk, O. Kysynets, D. Naprienko, etc. have considerably contributed to research of peculiarities of functioning and regulation of the natural monopoly activities. They have considered the legal area of the activities of natural monopolies, peculiarities of their functioning, and paid attention to improvement of mechanisms of government regulation of the natural monopoly activities.
Paper objective. An article objective is analysis and improvement of legal regulation of the activity of the railway transport as a subject of natural monopoly, which in turn constitutes a peculiar natural monopoly and needs specific legislative regulation.
Paper main body. Formation of national commissions is one of leverages of government regulation of the activity of the natural monopoly entities. According to the Law of Ukraine «On Natural Monopolies», National Commissions for Natural Monopolies Regulation are public collegial agencies, which are created, liquidated by the President of Ukraine, obey the President of Ukraine, report to the Verkhovna Rada of Ukraine, and act on the basis of Statements approved by the President of Ukraine. Nowadays, there are the following
commissions: the National Commission for the State Regulation of Energy and Utilities; the National Commission for the State Regulation of Communications and Informatization; National Commission for State Regulation of Financial Services Markets.
The main goal of a national commission, which would carry out government regulation in the sphere of transport, should consist in carrying out government regulation of the activity of natural monopoly entities in the field of transport and business entities, which operate in adjacent markets in the transport field.
Conclusions of the research. A natural monopoly is an independent unit of the national economy, existence of which is not expedient. It is worth mentioning that there is a peculiar natural monopoly in the railway transport field, which needs effective means of government regulation and a specific legislative approach to carrying out the regulatory activity in the mentioned field of the national economy. There is a gap in the government regulation of the transport field caused by inconformity of legislative acts regarding the status of the national commissions for natural monopolies regulation, absence of precisely determined authorities, rights, and obligations.
In this case, there is a need to take into account that PJSC «Ukrzaliznytsia» as a monopolist of infrastructure objects, which provides movement of public railway transport, influences tariff setting in usage of the mentioned infrastructure in the process of transportation of passengers and cargo.
Therefore, creation of a National Commission for Regulation in the Transport Field will provide the balance of interests of consumers, dominant companies, and the government in the process of decision-making.
Short Abstract for an article
Аbstract. The article is dedicated to improvement of legal regulation of the activity of natural monopoly entities, indication of disadvantages of the existing normative and legal basis and ways of their elimination. The author pays considerable attention to government regulation of the activity of a natural monopoly entity such as railway transport, which, in turn, constitute a peculiar natural monopoly and requires specific legislative regulation.

Keywords

 Transport, railway transport, monopoly, natural monopoly, anti-trust regulation, National Commission for Regulation in the Transport Field.

Reviewer

External reviewer

Article in PDF

 2-216-229

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17.05.2016