Application of a risk-based approach in the practice of public regulation (using the example of the electric power industry)

The electric power industry is a basic branch of the economy. It has always been, is and will be a sphere of state regulation. There are a lot of objective reasons for state regulation which related to the specificity of electricity as a commodity and the formation of a natural monopoly. The aim of the article is to develop a policy of state regulation of the electric power industry. The principles of nudging and using the concept of a risk-oriented approach consist the basic of state regulation. The goal has determined the solution of some tasks: 1) the consideration and clarification of the principles of state regulation; 2) formation of a risk-oriented approach in the practice of state regulation; 3) the application of a risk-oriented approach and the principle “nudge” in the practice of state regulation of the electric power industry. Balancing the interests of electricity companies with those of other sectors of the national economy, avoiding excessive price increases for different groups of consumers, improving the efficiency of electricity companies - all these issues are within the scope of public policy and require the use of sound instruments of government regulation.