Although much has been written about the functioning of public fund mechanisms, very little has been written about the range of social relationships which arise from the public regulation of prices for goods and services, including their legal regulation. In this regard, main types of social relationships in the field of public finance that arise in the field of public regulation of prices for goods and services are identified. The powers between the bodies of state executive power and local self-government in the field of regulation of prices and tariffs which give rise to financial relations are differentiated. The focus was placed to the examination of origin of the term “tariff”, its traditional application in such areas as: labor remuneration, taxation (customs tariff), electric power industry, communal public services, communications and transport. Depending on the type of service supply, a full review to the approaches to the legal consolidation of the concept of “tariff” in aforesaid areas are analyzed. On the basis of this analysis, the generalized definition of the concept “tariff” which is subject to public-law regulation, is offered. This in turn has led the author to a search for the unified definition of the concept “public tariff”.
Against this contentious background, current thesis suggests the description of characteristic features peculiar for the social relationships that arise within the application of publicly regulated tariffs. It is substantiated under which preconditions and elements the legal regulation in the sphere of tariff method application can be directly traced to tariff mechanism. As indispensable part of the research, the notion of tariff mechanism is offered as well. The author then distinguishes the content of the categories “tariff process” and “tariff procedure”. Consequently, the concept of “tariff mechanism in the field of public finance” is defined.
Answering the historical perspective, the origins of approaches to the distinction between public and private law, the content of the categories “interest”, “private interest”, “state interest”, “legally protected interest” and “public interest” are reinvigorated. As a result, the content of public interest in the application of tariff mechanisms is outlined. It is noted that among the participants, involved in the tariff mechanisms application, are primarily the state (territorial communities), represented by the established bodies and other authorized entities, providers of relevant services and their consumers. The main task of these legal relations is to ensure the balance between parties’ interests, as well as the protection of the most vulnerable participant (consumer) and the state (territorial community) as a business entity. The domestic approach and experience of the EU in determining the list of services of general economic interest are analyzed. It is stressed that the main reason for the introduction of regulated tariffs is the providers’ status, the activity of which is characterized as a natural monopoly.
