Principles, directions, and performance evaluation of state regulation in natural monopolies

The modern model of natural monopoly operations calls for a thorough reassessment of the forms and limits of state regulation, as traditional administrative approaches increasingly fail to align with the dynamics of socio-economic processes. This study provides a comprehensive analysis of the essence, principles, directions, and methodological framework for evaluating the effectiveness of regulatory mechanisms in this field. The relevance of the topic stems from the need to balance the interests of consumers, monopoly suppliers, and the state amid infrastructure dependencies and shifting investment models. The article aims to present a conceptually and instrumentally refined regulatory "framework" that accounts for industry-specific factors, constraints, and efficiency criteria. The analysis reveals contradictions in interpreting the boundaries of state intervention—some approaches emphasize strict directives, while others favor incentive-based mechanisms and partial liberalization. The author concludes that universal regulatory models are ineffective and proposes a differentiated approach based on industry diagnostics, institutional maturity, and the digital transformation of the regulated environment. The author’s contribution lies in outlining five key policy improvement areas: adapting tariff models, strengthening independent regulatory institutions, enhancing cross-sector coordination, digitalizing oversight mechanisms, and differentiating regulatory regimes. The findings will be valuable to public policy experts, regulatory authorities, infrastructure economics researchers, and industry strategy developers.