Fiscal Federalism and Local Public Utility Policy in the Conditions of Uncertainty by the Energy Crisis

Abstract

Public utility service providers are expected to perform positively, with reduced prices and without losses that could put pressure on the local self-government budget. The global energy crisis has had negative impacts on public utility services in the Republic of Serbia. Many public companies, including those in the heating sector, have faced operational problems and rising business costs. The local self-governments, however, are obligated to ensure the availability of utility products and the distribution and supply of heating to their citizens. By considering the fundamental features of fiscal federalism, this chapter will analyze the pricing strategy of the heating company in Leskovac. The main objective of the work is to examine the impact of increasing energy prices on heating prices. Based on the results and indicators, conclusions are drawn, and recommendations are given for further research in the field of operations of public utility companies with the aim of overcoming the consequences of the energy crisis as easily as possible.