The Issue of Electricity Subsidizing in the Arctic zone of Sakha Republic (Yakutia)

The article contains an analysis of the actual costs of electricity production in the Arctic zone of Sakha Republic (Yakutia). For this, on was compiled the Fuel and Energy Balance of boiler and furnace fuel used in the Arctic zone for 2017. It should be noted that all diesel is imported into the Republic from outside. Diesel for the electric plants is imported and transported in difficult logistic. The prime cost of electricity production at Diesel Power Plants far exceeds the approved regulated tariffs. Each year, the rise in price of diesel leads not only to an increase in the cost of electricity production, but also to an increase in cross-subsidies. Therefore, the dynamics of average selling prices is growing, also subsidies too. At the same time, the growth rate of real incomes of the population is decreasing. Based on this analysis, a forecast is made for the growth of cross-subsidies until 2023.