The paper investigates scientific foundations and practical importance of improving the mechanisms of state regulation of the electric power industry of Ukraine as a natural monopoly. The author offers a solution of the task of identifying the functional characteristics of natural monopolies as market structures, identifies key approaches to improve the mechanisms of state regulation of electric power producing industrial enterprises as natural monopolies, provides an analysis of institutional and legal framework of their management, and clarifies the main contradictions of their demonopolization. The work analyzes the essential features of natural monopolies and defines conceptual approaches to business transformation of natural monopolies
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