Restructuring of the electricity market in view of transformation and pricing challenges

Introduction. The study introduces several most significant empirical and analytical findings covering the issue of electricity restructuring. In this regard, it details the data set on electricity framework in order to investigate tendencies and the main challenges in the market structure following the regulation and deregulation processes of the electricity sector, as well as the consequences for pricing. Purpose. The purpose of the study is to analyze key aspects of the restructuring of electric energy markets in order to determine the main challenges related to justification of the optimal structure of the industry with this framework, as well as to establish the dependence between reforms, structural transformations and price volatility in the energy market. Methods. To achieve the research results we used the methods of comparison, retrospective and evidence-based analysis, generalization and systematization. Restructuring of the electricity market under such methods depends on complicated factors with regard to network utilities, technological, institutional aspects and its strategic role in the whole national economic system. An overview of electricity production and pricing in the world and different European countries has been worked out with a special regard to functioning of the ENTSO-E pan-European energy system. Based on the results of the correlation and regression analysis, the authors of the article have revealed the dependence of average price values in the night and day periods on the balancing market of Ukraine, which acts as an organized segment of the electricity market as a result of the reform. Results. It should be noted that deregulation and restructuring of energy companies have been determined by the transition to competitive relations and made it possible to solve significant problems in different fields of activity, including tariffs, participants' interests, energy efficiency, etc. Consequently, reforming of the energy market structural components should be comprehensively implemented in order to avoid fragmentary imbalances and the impact of price distortions on the participants of the electricity market. Further research is necessary to develop the current business processes relating to restructuring electricity market.