Unofficial translation
Footnote. Title of the Law as amended by the Law of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009).
Footnote. Throughout the text the words “central state body, carrying out control and regulation of activity in the scopes of natural monopolies” are substituted by the words “an authorized body” by the Law of the Republic of Kazakhstan dated 5 July, 2006 No. 166 (shall be enforced from the date of its official publication).
This Law regulates activity in the scopes of natural monopolies and on the regulated markets, as well as directs to ensuring protection of interests of consumers, entities of natural monopolies and entities of regulated markets.
Footnote. Preamble is in the wording of the Law of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009).
Article 1. Purposes of this Law
Purposes of this Law shall be:
1) determination of legal basis of the state regulation and control of activity in the scopes of natural monopolies, as well as the state regulation and control of price formation on the regulated markets;
2) achievement the balance of the interests of consumers and entities of natural monopolies, regulated market.
Footnote. Article 1 is in the wording of the Law of the Republic of Kazakhstan dated 26.12.2002 No. 364; as amended by the Laws of the Republic of Kazakhstan dated РК dated 20.12.2004 No. 13 (shall be enforced from 1 January, 2005); dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009).
Article 1-1. The legislation of the Republic of Kazakhstan on the natural monopolies and regulated markets
1. The legislation of the Republic of Kazakhstan on natural monopolies and regulated markets shall be based on the Constitution of the Republic of Kazakhstan and shall consist of this Law and other regulatory legal acts of the Republic of Kazakhstan.
2. If the international treaty, ratified by the Republic of Kazakhstan establishes the other rules, than those provided by this Law, the rules of international treaty shall be applied.
Footnote. The Law is supplemented by Article 1-1 in accordance with the Law of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009).
Article 2. Force of this Law
1. This Law shall be distributed to the relations, arising on the services market (goods, works), linked with existence and activity of entities of natural monopolies, regulated markets.
2. Provisions of this Law shall be distributed to the actions (omission) of entities of natural monopolies, regulated markets, their incorporators (participants), performing beyond the Republic of Kazakhstan, in the cases, when this actions (omissions) shall contravene to this Law and damage the consumers services (goods, works) of natural monopolies, regulated markets.
3. Force of this Law shall not be distributed on individual entrepreneurs and legal entities, carrying out activity, referred to the scope of natural monopolies, in one of the following cases, when:
1) an activity is linked with construction and operation of the objects, exclusively intended for their own needs;
2) an activity, provided by subparagraph 2) of paragraph 1 of Article 4 of this Law is carried out in compliance of the following set of conditions:
incomes of such activity shall not exceed one percent of incomes from all activity for one calendar year;
maintenance the level of tariff for services related to the scope of natural monopoly, being in force on 1 January, 2012.
3-1. For the market entity, carrying out activity, which is referred by this Law to the scope of natural monopoly, the state regulation and control shall be applied only in relation of such activity.
3-2. For the regulated market entities, the state regulation and control, provided by this Law, shall be applied only in relation of price formation on the goods (works, services) within regulated market.
4. Legal relations, not covered by this Law, shall be regulated by antimonopoly and other legislation of the Republic of Kazakhstan.
Footnote. Article 2 as amended by the Laws of the Republic of Kazakhstan dated 26.12.2002 No. 364; dated 09.12.2004 No. 9; dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009); dated 22.06.2012 No. 21-V (shall be enforced from 01.06.2012).
Article 3.The basic concepts, used in this Law
The following basic concepts shall be used in this Law:
1) illegal diversion of funds of amortization deductions – direction of the funds, provided in the approved tariffs (prices, rates of charges) and (or) rates estimates, at the expense of amortization deductions for purposes, not related to investment in fixed assets used in the provision of regulated services (goods, works ) and return of principal of debt on borrowed credit resources;
1-1) selling price - product price (works, services), applied by the entity of regulated market for its production and (or) realization;
2) general service - the provision of services (goods, works) by the natural monopoly entities for all customers in a designated territory of the Republic of Kazakhstan, where natural monopoly entities carry out its activity and able to provide services (goods, works);
3) public hearings – a procedure of discussing the draft tariffs (prices, rates of charges) or its limited level on the regulated services (goods, works) of a natural monopoly entity with invitation of representatives of state bodies, consumers and their public associations, independent experts, the mass media, and natural monopoly entities;
4) investment program – a program of investment and return of facilities, directed to creation of new assets, expansion, restoration, updating, support for existing assets, reconstruction, technical re-equipment of basic assets of a natural monopoly entity, regulated market, on the short, medium or long term in order to obtain technical economic effect, including one or more investment projects;
5) investment project – a package of measures, provided investments in creation of new, expansion and updating of existing productions;
6) investment tariffs (price, rates of charges) – confirmed by the authorized body within the frame of one investment project the tariff (price, rates of charges) or its limited level on the regulated services (goods, works) of the natural monopoly entity, rendering on the newly created objects, acting until full cost recovery of investments;
7) financial examination – an analysis of financial and operational activity of the natural monopoly entity for the purpose of evaluation of execution of the legislation of the Republic of Kazakhstan by them on natural monopolies and regulated markets and decisions of the authorized body, distribution of incomes, expenses and committed assets of each type of regulated services (goods, works) and in general on other activity in accordance with the procedure, confirmed by the authorized body, as well as influence of applicable tariffs (prices, rates of charges) on the financial indices of activity of the natural monopoly entity, verification (evaluation) of performance of tariff estimate and observance of accounting policy, execution of investment programs and (or) investment projects;
8) natural monopoly entity of low-power – a natural monopoly entity, rendering the services:
on production, transfer, distribution and (or) supply with thermal energy from the heating plants with a total installed capacity of up to twenty Gcal / h inclusively;
water services and (or) water removal of the amount of up to fifty thousand cubic meters per year;
in the scope of approach lines of the amount of up to thousand car/km;
9) short-term period – time duration up to one year inclusively;
10) medium-term period – time duration of more than one year to five years inclusively;
11) regulated markets – goods markets, on which the state regulation of prices for the entity of regulated markets are introduced in accordance with this Law;
12) an entity of regulated market – an individual entrepreneur or legal entity (except of the subjects of natural, state monopoly and energy producing organizations):
included in the State register of the market entities, holding the dominant or monopoly position on the regulated markets;
realizing the products, goods and services, included in a nomenclature, established by the Government of the Republic of Kazakhstan;
12-1) a method of comparative analysis – method of formation of tariff on the regulated service of the natural monopoly entity, being a regional electric grid company (hereinafter – a regional electric grid company), on transmission and distribution of electricity, providing comparison of the effectiveness of this regional electric grid company, formed by the authorized body and state body, carrying out the administration in the field of electrical energy industry;
12-2) differential tariff – a tariff on the regulated services of the natural monopoly entity, confirmed by the authorized body on a case by case basis on consumer groups and (or) amount of consumption;
13) strategic goods – coal, gas, fuel oil, diesel fuel, used as fuel for production of heat energy by natural monopoly entities, electric energy – for the natural monopoly entities in the scope of transfer and (or) distribution of electricity, water services and (or) water removal, heat energy – for the normative losses of the natural monopoly entities in the scope of transfer and (or) distribution of heat energy, gas – for the in-house needs and losses for the natural monopoly entities in the scope of transmission of gas or gas condensate on main and (or) distribution pipelines;
14) producers of strategic goods – individuals and legal entities:
producing the strategic goods;
being the owners of raw materials for production (processing) of strategic goods;
directly on behalf of foreign producer, realizing the strategic goods in the territory of the Republic of Kazakhstan;
15) natural monopoly – condition of service market (goods, works), in which creation of competitive conditions for satisfaction of demand on a particular kind of services (goods, works) is impossible or economically inappropriately by virtue of technological characteristics of production and provision of these services (goods, works);
16) the scope of natural monopolies - a field of social relations, arising in the services market (goods, works), in which an individual entrepreneur or legal entity may be recognized as a natural monopoly entity;
17) a natural monopoly entity – an individual entrepreneur or legal entity, engaged by the production of goods, execution of works and (or) provision of services to consumers in the conditions of natural monopoly;
18) affiliated person of a natural monopoly entity – a person (except of the state bodies, carrying out regulation of its activity within the frame of granted powers), who have the opportunity directly and (or) indirectly determine decisions and (or) influence the decision, accepted by the natural monopoly entity, as well as by virtue of the contract, including an oral contract or other transaction, as well as any person in relation of which a natural monopoly entity has such a right;
19) regulated services (goods, works) of the natural monopoly entity – services (goods, works), rendering by the natural monopoly entity in the scope of natural monopoly and subject to the state regulation by the authorized body, including the cases of rendering of services (goods, works) in terms of transfer of particular goods to the consumer;
20) tariff (price, rates of charges) - money terms of the value of regulated services (goods, works) of a natural monopoly entity, confirmed by the authorized body;
21) tariff estimate – confirmed by the authorized body in terms of the regulated services (goods, works), the indices of income and expenditure items, on amounts of rendered regulating services (goods, works) and other economic indices of activity of the natural monopoly entity in form, confirmed by the authorized body;
22) limited level of tariff (prices, rates of charges) – maximum value of tariff (price, rate of charge) on the regulated service (good, work) of the natural monopoly entity, confirmed on medium-term or long-run period;
23) technical examination – analysis of technical condition (technical characteristics) of committed assets of the natural monopoly entity and necessity of performance of works, providing support of assets in operative condition, processing efficiency, including conformity of established regulations of material, labour costs, production technology, assessment of necessity of carrying out of investment programs and (or) investment projects, the level of involvement and proper distribution of basic assets by types of provided regulated services (goods, works);
24) extraordinary regulatory measures – measures, accepted by the authorized body in order to protect life, health of citizens, property of individuals and legal entities, as well as environmental protection;
25) group of persons – a set of individuals and (or) legal entities, holding of ten or more percent of the voting shares (share of participation) of a natural monopoly entity, which jointly in the result of the agreement have the right to directly or indirectly determine decision and (or) influence the accepted decisions by the natural monopoly entity;
26) a consumer – an individual or legal entity, using or intending to use the regulated services (goods, works) of natural monopoly entity and regulated markets;
26-1) a consumer group – a set of consumers, associated by common traits, activity, permitted use of the regulated services of the natural monopoly entities;
27) temporary compensated tariff – tariff (price, rate of charge), established by the authorized body in order of compensation for losses, caused to the consumers by the natural monopoly entity;
28) temporary decreasing coefficient - the value, established by the authorized body and applied to the tariff (price, rate of charge) in order of protection of the interests of consumers and a natural monopoly entity;
29) an authorized body – a state body, carrying out the administration in the scopes of natural monopolies and on the regulated markets;
30) long-run period – time duration more than five years;
31) limit price – price of good (work, service), established by the entity of regulated market on the basis of expenses and benefits, necessary for their production and (or) realization in accordance with the procedure of price formation, and recognized by the authorized body, based on the results of execution of the examination of price.
Footnote. Article 3 is in the wording of the Law of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009); as amended by the Laws of the Republic of Kazakhstan dated 15.03.2010 No. 255-IV; dated 04.07.2012 No. 25-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 06.03.2013 No. 81-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 12.06.2014 No. 209-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 4. Scopes of natural monopolies
1. The following services (goods, works) shall be related to the scopes of natural monopolies in the Republic of Kazakhstan:
1) on transportation of oil and (or) oil-products on main pipelines;
2) on storing, transportation of traded gas on interconnection, main gas pipelines and (or) gas-distribution systems, operation of group tank units, as well as the transportation of raw gas interconnection;
3) on transmission and (or) distribution of electricity;
4) on production, transmission, distribution and (or) supply with heat energy, except of the heat energy, produced with using of heat of soil, groundwater, rivers, water reservoirs, waste water of industrial enterprises and electric power plants, sewage treatment plants;
5) on technical dispatching supply to the grid and electric energy consumption;
5-1) on organization of balancing of production and consumption of electricity;
Note of RCLI!
Article 4 is provided to be supplemented by paragraph 5-2 in accordance with the Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (shall be enforced 01.01.2016).
6) backbone railway network;
6-1) services of railway lines with railway transport under public-private partnership agreements;
7) approach lines;
8) air navigation;
9) ports, airports;
10) telecommunication upon condition of absence of a competitive communication provider because of technological impossibility or economical inexpediency of provision of these types of services, except of universal telecommunications services;
11) on provision in a property lease (rent) or use of cable duct system and other basic assets, technologically linked with connection of telecommunication networks to public telecommunication networks;
12) water services and (or) water removal;
13) publicly available postage services.
2. An authorized body shall carry out the analysis of scope of natural monopolies, enumerated in paragraph 1 of this Article in order to assignment the services (goods, works), provided by the natural monopoly entities within the frame of these scopes to regulated.
The list of regulated services (goods, works) shall be confirmed by the authorized body.
3. Natural monopoly entities shall subject to inclusion in the State register of natural monopoly entities, consisting of republican and local sections, with specification of certain types of provided regulated services (goods, works).
The procedure of inclusion and exclusion of the natural monopoly entities from the State register shall be established by the authorized body.
Footnote. Article 4 as amended by the Law of the Republic of Kazakhstan dated 6 December, 2001 No. 260; dated 26 December, 2002 No. 364; dated 5 July, 2004 No. 568. New wording – dated 9 December, 2004 No. 9; dated 20 December, 2004 No. 13(shall be enforced from 1 January, 2005 г.); as amended – dated 14 January, 2006 No. 120 (shall be enforced from the date of its official publication); dated 05.07.2008 No. 66-IV (the order of enforcement see Article 2); dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009); dated 09.01.2012 No. 533-IV (shall be enforced upon expiry of 10 calendar days after its first official publication); dated 13.01.2012 No. 542-IV (shall be enforced upon expiry of six months after its first official publication); dated 06.03.2013 No. 81-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 03.07.2014 No. 230-V(shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 5. Restrictions of activity of natural monopoly entities
1. The natural monopoly entity shall be prohibited to:
1) render services and carry out other activity, not related to the scopes of natural monopolies, except of the activity:
technologically related with the regulated services (goods, works);
established by the legislation of the Republic of Kazakhstan on post;
in case, when the incomes from rendering of regulated services (goods, works), related to the scope of natural monopoly, not exceed one percent of incomes from all activity of the market entity for one calendar year;
in case, when the incomes from other activity not exceed five percent from all activity of natural monopoly entity for one calendar year;
in case of impossibility of organization and territorial insulation of the structural subdivision, rendering services (goods, works) in the scope of natural monopoly;
2) have the property on right of ownership and (or) economic management, not related with production and provision of regulated services (goods, works) by the natural monopoly entity, as well as carrying out of activity, allowed for the natural monopoly entity in accordance with this Law;
3) hold shares (shares of participation) or otherways to participate in the activity of commercial organizations, except of voluntary pension savings fund, special financial companies, accounting and finance center on support of renewable energy sources, as well as other organizations, carrying out activity, allowed for the natural monopoly entity by this Law;
4) charge for regulated services (goods, works), exceeding the amount, established by the authorized body;
4-1) charge an extra fee, not provided by this Law, or otherways to impose the additional obligations, which on its content is not related to the subject of rendered regulated services (transfer of financial assets and other property, property rights and other);
4-2) allow excess of assets, provided by Article of tariff estimate, confirmed by the authorized body, more than five percent, except of the regional electric grid company, cases of increase in expenses on used strategic products, as well as natural and man-made emergency situations;
5) impose conditions of access to regulated services (goods, works) of natural monopoly entity or perform other actions, leading to discrimination of consumers;
5-1) transfer the property, belonging on the right of ownership or other legal basis, used in technological cycle upon production and (or) provision of regulated services (goods, works), in trust management, property lease (rent), including leasing;
6) assign a right of demand, linked with the provided regulated services (goods, works), except of the assignment of right of demand of special financial company on transactions of project financing and securitization, upon condition that it is not lead to tariff raising (prices, rates of charges) on the regulated services (goods, works) of the natural monopoly entity;
7) refuse in provision of regulated services (goods, works) to the voluntary enterprises in connection with non-payment by unconscientious consumers of used amount of regulated services (goods, works);
8) include expenses, not related with their provision, in the tariffs (prices, rates of charges) or their limited levels on the regulated services (goods, works);
8-1) allow an illegal diversion of funds, provided in the investments programs (projects), confirmed in accordance with the established procedure;
9) ask for payments of provided regulated services (goods, works), not complied with requirements to the quality of regulated services (goods, works), established by the state bodies within their competence;
10) recognize information as a commercial secret:
containing in the tariff estimate;
on expenses to acquisition and installation of regulated metering devices and charging mechanisms, acquisition and installation of regulated metering devices of regulated communal services;
on provided regulated communal services (goods, works).
1-1. Restrictions, provided by subparagraph 1), 2) and 3) of paragraph 1 of this Article shall not be distributed to the natural monopoly entities of low power.
1-2. Restrictions, provided by subparagraph 1) of paragraph 1 of this Article shall not be distributed to the natural monopoly entities, rendering services of airports.
2. Restrictions, provided by subparagraph 5-1) of paragraph 1 of this Article shall not be distributed to the natural monopoly entities, rendering the regulated services (goods, works) in accordance with subparagraph 11) of paragraph 1 of Article 4 of this Law.
Footnote. Article 5 is in the wording of the Law of the Republic of Kazakhstan dated 26.12.2002 No. 364; as amended by the Laws of the Republic of Kazakhstan dated 20.02.2006 No. 127 (the order of enforcement see Article 2); dated 05.07.2006 N 166 (shall be enforced from the date of its official publication); dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009); dated 15.03.2010 No. 255-IV; dated 12.01.2012 No. 539-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 21.06.2013 No. 106-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 04.07.2013 No. 128-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 04.07.2013 No. 132-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 6. Rights of natural monopoly entity
A natural monopoly entity shall have a right to:
1)establish the technical requirements, compulsory for observance by the consumers in accordance with the legislation;
1-1) reduce tariffs (prices, rates of charges) on the regulated services (goods, works) for all consumers in the period of effect of tariffs (prices, rates of charges) according to the procedure, confirmed by the authorized body;
1-2) conduct the technical service and organize verification of the metering devices according to the procedure, established by the legislation of the Republic of Kazakhstan;
1-3) present an application for consideration to the authorized body for confirmation of tariff (prices, rates of charges) or its limited level on the regulated services (goods, works) in the cases and procedure, established by the authorized body;
1-4) charge from consumers for acquisition and installation of metering devices of regulated communal services, coordinated with the authorized body;
2) contribute suggestions upon adoption of decisions by the authorized body, concerning matters of its activities and legal status;
3) appeal the actions (omission) of the authorized body to a court, contradicted to the legislation of the Republic of Kazakhstan;
4) appeal the actions (omission) of other subjects to the authorized body or to a court, which reflected on its activity, incomes, ownership or legal status;
5) apply to the authorized body in accordance with the established procedure on exclusion it from the State register of the natural monopoly entities;
5-1) increase the tariffs (prices, rates of charges) or their limited levels on provided regulated services (goods, works) according to the procedure, established by the authorized body for all consumers in case of relevant changes of tax legislation of the Republic of Kazakhstan, in the results of which cost of expenses of the natural monopoly entity is increased;
5-2) direct the underused part of expenses, included in tariff estimate to the creation of new, expansion, restoration, updating, support, reconstruction and technical re-equipment of productive assets, resulted from cost optimization or use of more effective methods and technologies of provision of regulated services;
6) have other rights, provided by the legislative acts of the Republic of Kazakhstan.
Footnote. Article 6 as amended by the Laws of the Republic of Kazakhstan dated 26.12.2002 No. 364; dated 09.12.2004 No. 9; dated 05.07.2006 N 166(shall be enforced from the date of its official publication); dated 27 July, 2007 No. 316(shall be enforced from the date of its official publication); dated 06.03.2013 No. 81-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 7. Obligations of natural monopoly entities
A natural monopoly entity shall have a right to:
1) perform decisions of the authorized body, not contradicted to the legislation of the Republic of Kazakhstan;
2) provide the regulated services (goods, works) on tariffs (prices, rates of charges), confirmed by the authorized body, except of the cases, provided by subparagraph 2-3) of this part;
2-1) secure acceptance of payments from consumers for provided to them the regulated communal services (goods, works) through their own payment offices, as well as banks and organizations, carrying out the separate banking activities. This requirements shall not be distributed to the natural monopoly subjects, specified in paragraph 3 of Article 15 of this Law;
2-2) provide the general service of regulated services (goods, works) of consumers in accordance with the requirements to the quality of provided regulated services (goods, works), established by the state bodies within their competence;
2-3) provide the regulated communal services of water services and (or) water removal on limited levels of tariffs (prices, rates of charges), confirmed by the authorized body in the capital, cities of republican and regional significance;
3) provide equal conditions to the consumers of regulated services (goods, works), except of the cases of provision of regulated services (goods, works) in recognition of the benefits and privileges, established by the legislation of the Republic of Kazakhstan, as well as equal conditions of the access to the regulated services (goods, works) according to the procedure, confirmed by the Government of the Republic of Kazakhstan, except of the access to the services on transportation of products on main pipelines, the procedure of which is established by the Law of the Republic of Kazakhstan “On main pipeline”;
3-1) provide the regulated services (goods, works) for all consumers on united levels of tariffs (prices, rates of charges), not exceeding the limited level of tariff (price, rate of charge) in case of confirmation of limited tariff (price, rate of charge);
4) carry out procurement of services (goods, works), expenses on which considered upon confirmation of tariff (prices, rates of charges) or its limited level and tariff estimates on the regulated services (goods, works) of the natural monopoly entity, except of the regional electric grid company according to the procedure, established by this Law and other legislative acts of the Republic of Kazakhstan;
5) provide financial recording and other necessary information on paper and (or) electronic media on requirement of the authorized body in terms, established by the authorized body, which may not be less than five business days from the date of receipt of relevant requirement by the natural monopoly entity;
6) choose the most effective methods and technologies of production and provision of services of natural monopoly upon observance of the principles of social, ecological safety and safety for health of citizens;
7) conduct the compulsory annual audit by the audit organizations, except of the natural monopoly entities, specified in paragraph 3 of Article 15 of this Law, which conduct the compulsory audit once every three years. An audit report and annual financial recording shall be published in periodical print publications, distributed on relevant territories of administrative-territorial entity, on which the natural monopoly entity shall carry out its activity not later than thirty calendar days from the date of confirmation of audit report according to the procedure, established by the legislation of the Republic of Kazakhstan;
7-1) maintain the separate accounting of incomes, expenses and committed assets on each type of regulated services (goods, works) and in general on other activity according to the procedure, confirmed by the authorized body;
7-2) execute the tariff estimate, except of the regional electric grid company, as well as the case, provided by subparagraph 5-2) of Article 6 of this Law;
7-3) report on an annual basis on activity on provision of regulated services (goods, works) to the consumers and other interested persons according to the procedure, established by the Government of the Republic of Kazakhstan;
7-4) provide information on activity in case of confirmation of tariff with the application of the method of comparative analysis according to the results of quarter (year) on form, confirmed by the authorized body not later than last day of the month following the reporting quarter (year);
7-5) provide information on execution of investment program (project) on form, confirmed by the Government of the Republic of Kazakhstan and post this information in the mass media, distributed in the territory of administrative-territorial entity, on which the natural monopoly entity shall carry out its activity in the period of realization of investment program (project) annually no later than 1 May of the year following the reporting period;
8) conclude individual agreements with the consumers for each type of provided regulated communal services (goods, works), as well as for each type and (or) set of other provided regulated services (goods, works) in accordance with the model agreements, confirmed by the Government of the Republic of Kazakhstan;
8-1) conclude agreements of cooperation with the management body of the object of condominium for each type of provided by them the regulated communal services (goods, works) in accordance with the model agreements of cooperation, confirmed by the Government of the Republic of Kazakhstan;
9) acquire and install the metering devices of regulated communal services (goods, works) to the consumers in accordance with the agreements, concluded with the consumers;
9-1) charge for provided regulated communal services (goods, works) on average monthly metered values according to the procedure, established by the authorized body in case of breakdown of the metering device;
10) coordinate conducting of the asset revaluation with the authorized body according to the procedure, established by the legislation of the Republic of Kazakhstan;
11) annually present report on execution of tariff estimate not later than 1 May of the year following the reporting period, except of the regional electric grid company;
12) not allow violation of rights of consumers upon conclusion of agreements on provision of the regulated services (goods, works);
13) inform the authorized body and consumers on tariff (prices, rates of charges) reductions not later than ten days until introduction it into effect;
14) (is excluded - dated 14 January, 2006 No. 120 (shall be enforced from the date of its official publication);
14-1) represent the conclusion of financial and technical expertizes for confirmation of the tariff, its limited level and investment program (project) according to the procedure, established by the authorized body;
15) reduce the tariffs (prices, rates of charges) or their limited levels on the provided regulated services (goods, works) for all consumers in case of relevant change of the tax legislation of the Republic of Kazakhstan according to the procedure, established by the authorized body, in the result of which the cost of expenses of the natural monopoly entity is reduced from the date of introduction of the specified amendments into effect;
16) alienate property, intended for production and provision of the regulated services (goods, works), in trading in the form of tender, except of the cases of transfer of property to the state property;
17) develop and coordinate the methods of separate record-keeping of incomes, expenses and committed assets by types of regulated services of natural monopoly entities according to the procedure, established by the authorized body;
18) execute the investments programs, confirmed in accordance with the established procedure;
19) not allow exceeding of technical and technology based standards of consumption of raw materials, materials, fuel, energy, directly used for rendering of regulated services (goods, works), confirmed by the authorized body, more than five percent, except of the cases of increasing the technical and technology based standards of consumption of raw materials, materials, fuel, energy upon increasing of volumes of rendering services and in consequence of irresistible nature, as well as natural and man-made emergency situations and works, directed to prevention of technological violations or execution of prescriptions of the state bodies;
20) develop and realize the plan of measures on liquidation of excessive losses in case of their existence, upon that the term of liquidation of excessive losses shall not exceed five years in the result of realization of the plan of measures;
21) reduce the level of regulatory technical losses to the amount and in terms, determined by the authorized body;
22) annually present the report on realization of the plan of measures on its liquidation up to 1 December upon existence of excessive losses.
Obligations, provided by subparagraphs 4), 7-1), 10) 14-1), 17) and 18) of the first part of this Article shall not be distributed to the natural monopoly entities of law powered.
An obligation, provided in subparagraph 2-3) of the first part of this Article shall not be distributed to the natural monopoly entities of law powered, newly created natural monopoly entities and regional electric grid companies.
Footnote. Article 7 as amended by the Laws of the Republic of Kazakhstan dated 26.12.2002 No. 364; dated 09.12.2004 No. 9; dated 20.12.2004 No. 13 (shall be enforced from 01.01.2005); dated 14.01.2006 No. 120 (shall be enforced from the date of its official publication); dated 05.05.2006 No. 139 (the order of enforcement see Article 2 of the Law of the Republic of Kazakhstan No. 139); dated 05.07.2006 No. 166(shall be enforced from the date of its official publication); dated 27.07.2007 No. 316 (shall be enforced from the date of its official publication); dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009); dated 08.06.2009 No. 163-IV; dated 15.03.2010 No. 255-IV; dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011); dated 22.06.2012 No. 21-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 04.07.2012 No. 25-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 06.03.2013 No. 81-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 12.06.2014 No. 209-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 7-1. The state regulation of prices on the regulated markets
1. The state regulation of prices shall be distributed on the goods (works, services) of the entities of regulated markets in the field of railway transport, electro and heat engineering, production of oil-products, oil transport, civil aviation, port activity, telecommunications and postal communication, as well as gas in recognition of the peculiarities, established by the Law of the Republic of Kazakhstan “On gas and gas supply”.
2. The Government of the Republic of Kazakhstan shall establish the nomenclature of products, goods, services, on which the prices for goods markets, regulated by the state, not provided by paragraph 1 of this Article are applied on the suggestion of antimonopoly and authorized body.
Footnote. The Law is supplemented by Article 7-1 in accordance with the Law of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009); as amended by the Law of the Republic of Kazakhstan dated 20.07.2011 No. 462-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 09.01.2012 No. 533-IV(shall be enforced upon expiry of 10 calendar days after its first official publication); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 7-2. The procedure of price formation on the regulated markets
Footnote. Title as amended by the Law of the Republic of Kazakhstan dated 15.03.2010 No. 255-IV.
1. The procedure of price formation on the regulated market shall be established by the Government of the Republic of Kazakhstan.
2. An authorized body carry out an expertize of price in accordance with the procedure of price formation on the regulated markets in the cases, provided by the second item of subparagraph 1) and subparagraph 2) of Article 7-3 of this Law.
An authorized body shall carry out monitoring of prices of the entities of regulated markets in order of compliance control of the procedure of price formation on the regulated markets, as well as in the cases, provided by the third and fourth items of subparagraph 1) of Article 7-3 of this Law.
An authorized body shall carry out an expertize of price in accordance with the procedure of price formation on the regulated markets according to the results of conducting of monitoring of prices and (or) on the basis of complaints, information, details, specifying to the establishment of unreasonable price, as well as in the cases of non-performance of duties, established by subparagraph 3) and 3-1) of Article 7-3 of this Law by the entities of regulated market.
2-1. An authorized body shall consider the quarterly information on execution of investment program (project), included in the limit price, and shall introduce the prescription to the entity of regulated market on return of income, received and not used for realization of investment program (project), included in the limit price in the case of its non-fulfilment at year-end. Information on introduced of prescription, specified in this paragraph to the natural monopoly entity shall be posted on web-site of the authorized body.
3. On the results of expertize not later than thirty calendar days from the date of receipt of notification or information on selling prices or information, provided within the frame of compliance control of the procedure of price formation on the regulated markets, an authorized body shall direct the motivated conclusion to the entity of regulated market on:
1) prohibition on price increase;
2) reduction of effective and project price up to price level, founded in accordance with the procedure of price formation on the regulated markets.
In case of absence of the grounds for rendering of motivated conclusion an authorized body shall inform on it the entity of the regulated market in the established terms in this paragraph.
Motivated conclusion shall be directed to the entity of regulated market by post with notification or shall be purposely served to its representative under signed receipt.
An entity of regulated market shall establish the relevant price for goods (works, services) from the date, specified in notification, directed to the authorized body, or from the date, established by the authorized body on the basis of received motivated conclusion, in case of delivery of information by the entity of regulated market in accordance with the second item of subparagraph 1) of Article 7-3 of this Law or information, provided within the frame of compliance control of the procedure of price formation on the regulated markets.
4. An entity of regulated market, not exceeding the limit price shall have a right to independently reduce and increase the price of produced (realized) goods (works, services) with delivery of information to the authorized body, specifying to the reasons of reduction and increase, not later than five business days from the date of reduction or increase of price.
Footnote. The Law is supplemented by Article 7-2 in accordance with the Law of the Republic of Kazakhstan dated 12.2008 No. 116-IV (shall be enforced from 01.01.2009); as amended by the Laws of the Republic of Kazakhstan dated 15.03.2010 No. 255-IV; dated 04.07.2012 No. 25-V(shall be enforced upon expiry of ten calendar days after its first official publication); dated 06.03.2013 No. 81-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 7-3. Obligations of the entities of regulated market
Entities of regulated market shall be obliged to:
1) provide to the authorized body:
information on selling prices with the annex of supporting materials, confirming the price level, not later than thirty calendar days from the date of introduction of the state regulation of prices or inclusion in the nomenclature of products, goods and services;
quarterly financial recording in accordance with the legislation of the Republic of Kazakhstan on book record and financial recording not later than the last day of the month, following the reporting quarter;
monthly information on production (realization) volume, rate of return and selling prices of produced (realized) goods (works, services) on the form, confirmed by the authorized body not later than the last day of the month, following the reporting period;
information on its requirements, necessary for carrying out of expertize of price on paper and (or) electronic media in the terms, established by the authorized body, which may not be less than five business days from the date of receipt of the relevant requirements by the entity of regulated market;
quarterly information on execution and non-fulfilment of the investment program (project), included in the limit price, on the form, confirmed by the authorized body not later than twenty-fifth date of the month, following the record quarter, with distribution in the mass media, except of the entities of regulated market, who provide this information in accordance with the Laws of the Republic of Kazakhstan;
necessary information, affected to the foundation of price;
2) inform the authorized body in written form not less than thirty calendar days on coming increase of prices for goods (works, services) more of the limit price and reasons of its increase with provision of supporting materials, confirming the reasons of increase (except of the entities of retail markets, not holding the dominant and monopoly position on the regulated markets);
3) comply with the procedure of price formation on the regulated markets;
3-1) execute the investment programs (projects), included in the limit prices in accordance with the procedure of price formation on the regulated markets;
3-2) return the income, received and not used for realization of investment programs (projects), included in the limit prices, direct to consumers or in case of impossibility of establishment of complete list of the consumers by reduction of the level of limit price for coming period in accordance with the procedure of price information on the regulated market;
4) return the income, received in the result of unfounded excess of the limit price, direct to consumers or in case of impossibility of establishment of complete list of consumers by reduction of the level of limit price for the coming period in accordance with the procedure of price formation on the regulated markets.
Footnote. The Law is supplemented by Article 7-3 in accordance with the Law of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009); as amended by the Laws of the Republic of Kazakhstan dated 15.03.2010 No. 255-IV; dated 04.07.2012 No. 25-V(shall be enforced upon expiry of ten calendar days after its first official publication); dated 06.03.2013 No. 81-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 7-4. Reception of financial recording, records, notifications and information of the natural monopoly entities, regulated markets
1. Financial recording, records, notifications and information of the natural monopoly entities, regulated markets, shall be provided in the authorized body in the terms, established by this Law.
2. The date of provision of financial recording, records, notifications and information to the authorized body depending of the methods of its provision shall be:
1) clandestine procedure – the date of the mark on admission of the authorized body;
2) by registered mail with notification – the date of the mark on reception of post or other communication organization;
3) in electronic form – the date of acceptance of the system of the admission of the authorized body, specified in the electronic notification on acceptance by the central server.
3. Financial recording, records, notifications and information on paper medium, delivered to the post organization or other communication organization up to twenty four hours of the last day of the term, established by this Law, shall be considered as provided in term upon existence of the time mark and date of reception of post or other communication organization.
Financial recording, records, notifications and information in electronic form, provided to the authorized body by electronic communication channel up to twenty four hours of the last day of the term, established by this Law shall be considered as provided in term.
4. Upon provision of financial recording, records, notifications and information in electronic form, an authorized body shall be obliged to direct the electronic notification on acceptance to the natural monopoly entity, regulated market not later than two business days from the date of reception of electronic system by the central server.
Footnote. The Law is supplemented by Article 7-4 in accordance with the Law of the Republic of Kazakhstan dated 15.03.2010 No. 255-IV.
Article 8. (Article 8 is excluded by the Law of the Republic of Kazakhstan dated 26 December, 2002 No. 364)
Article 9.(Article 9 is excluded by the Law of the Republic of Kazakhstan dated 26 December, 2002 No. 364)
Article 10. Rights of the consumer of services (goods, works) of the natural monopoly entity
Consumer of services (goods, works) of the natural monopoly entity shall have a right to:
1)buy the regulated services (goods, works) of the natural monopoly entity according to the procedure and on tariffs (prices, rates of charges), which are established by the authorized body, require installation of the metering devices or independently acquire and install it;
2) apply with statement to the authorized body on introduction of amendments and supplements, adoption of new and revocation of current decisions;
3) appeal the actions (omissions) of the authorized body in a court procedure, as well as adopted decisions by them;
4) appeal the actions of the natural monopoly entity, contradicted to the legislation of the Republic of Kazakhstan to the authorized body and (or) in a court procedure;
4-1) participate in the public hearings;
4-2) participate in the tenders on carrying out of procurement of services (goods, works) by the natural monopoly entity;
5) Have other rights, provided by the legislation of the Republic of Kazakhstan.
Footnote. Article 10 as amended by the Laws of the Republic of Kazakhstan dated 26 December, 2002 No. 364; dated 9 December, 2004 No. 9; dated 14 January, 2006 No. 120 (shall be enforced from the date of its official publication).
Article 11. Obligations of the consumer of services (goods, works) of the natural monopoly entity
A consumer of services (goods, works) of the natural monopoly entity shall be obliged to:
1) pay for services (goods, works) of the natural monopoly entity on tariffs (prices, rates of charges), confirmed by the authorized body in a timely manner and in a full volume;
2) pay for acquisition and installation of the metering device of regulated communal services (goods, works) in accordance with the conditions of concluded agreements in a timely manner and in a full volume;
3) execute the technical requirements, established by the natural monopoly entities in accordance with the legislation of the Republic of Kazakhstan;
4) have the metering devices of regulated communal services (goods, works).
Footnote. Article 11 is in the wording of the Law of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009); as amended by the Law of the Republic of Kazakhstan dated 15.03.2010 No. 255-IV.
Article 12. An authorized body
Provision, structure and genera staff numbers of the authorized body shall be established by the Government of the Republic of Kazakhstan.
Footnote. Article 12 is in the wording of the Law of the Republic of Kazakhstan dated 20.12.2004 No. 13 (shall be enforced from 01.01.2005).
Article 12-1. The competence of the state body, carrying out the cross-sector and interregional coordination of the development of basic directions of the state social and economic policy
Footnote. Article 12-1 is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 13. Functions of the authorized body
1. An authorized body shall:
1) carry out control and regulation of activity of the natural monopoly entities;
1-1) carry out the state regulation and control of price formation by the entities of regulated market;
1-2) develop proposals on formation of the state policy in the scope of regulation of natural monopolies and on the regulated markets;
2) form and maintain the state register of the natural monopoly entities;
3) develop and confirm the regulatory legal acts, compulsory for execution by the state bodies and natural monopoly entities;
3-1) develop and confirm the forms of compulsory departmental recording, prompt sheet, rating rationale of risk level, semi-annuals plans of conduct of verifications in accordance with the Law of the Republic of Kazakhstan “On the state control and supervision in the Republic of Kazakhstan”;
4) develop, confirm and apply the nondiscriminatory methods of the tariff (prices, rates of charges) calculations or its limit levels on the regulated services (goods, works) of the natural monopoly entities, as well as calculation methodology of prices for goods (works, services) of the natural monopoly entities;
4-1) determine the reasonable amount of the size of consumption of the regulated services by individuals in the scope of water supply according to the procedure, established by the Government of the Republic of Kazakhstan;
4-2) Is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
4-3) perform the information analysis of the natural monopoly entities on execution of investment programs (projects);
4-4) Is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
4-5) coordinate the concessional suggestions, technical-and-economic assessment of the concessional project, competitive documentation, draft of public-private partnership agreement, as well as upon introduction of amendments and additions in it, amendments and additions in a public-private partnership agreement in terms of procedure of formation and confirmation of tariffs (prices, rates of charges) for the services (goods, works), relating to the scope of natural monopolies;
5) is excluded by the Law of the Republic of Kazakhstan dated 13.01.2014 No. 159-V (shall be enforced upon expiry of ten calendar days after its first official publication);
5-1) confirm in accordance with the established procedure:
regulatory technical losses of the natural monopoly entity;
technical and technology based standards of consumption of raw materials, materials, fuel, energy of the natural monopoly entity, except of the regional electric grid company;
regulatory number of personnel of the natural monopoly entity, except of the regional electric grid company;
5-2) coordinate the personnel list of the natural monopoly entities according to the procedure, established by it:
with participation of the state in a charter capital;
affiliated with the legal entities with participation of the state in a charter capital;
5-3) coordinate the limiting level of remuneration of labour of leading employees of administrative personnel of natural monopoly entities according to the procedure, established by them:
with participation of the state in a charter capital;
affiliated with legal entities with participation of the state in a charter capital;
5-4) coordinate an annual estimate of expenses, directed to the routine and major repairs and other repair and restoration works, not lead to the cost increase of the basic assets of a natural monopoly entity, except for the regional electric grid company;
5-5) (is excluded by the Law of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009);
5-6) determine the technical conditions of non-discriminated access in the field of railway transport, electro and heat engineering, civil aviation, port activity;
5-7) issue permissions, provided by the Law of the Republic of Kazakhstan “On permissions and notifications”, in recognition of exclusions, provided by subparagraph 7) of paragraph 2 of Article 3 of the Law of the Republic of Kazakhstan “On permissions and notifications”;
5-8) carry out other functions, provided by this Law, other Laws of the Republic of Kazakhstan, the acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan;
6) (is excluded - dated 5 July, 2006 No. 166 (shall be enforced from the date of its official publication).
2. (Is excluded - dated 5 July, 2006 No. 166 (shall be enforced from the date of its official publication).
Footnote. Article 13 is in the wording of the Law of the Republic of Kazakhstan dated 20.12.2004 No. 13 (shall be enforced from 01.01.2005); as amended by the Laws of the Republic of Kazakhstan dated 14.01.2006 No. 120 (shall be enforced from the date of its official publication); dated 05.07.2006 No. 166 (shall be enforced from the date of its official publication); dated 27.07.2007 No. 316 (shall be enforced from the date of its official publication); dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009); dated 17.07.2009 No. 188-IV(the order of enforcement see Article 2); dated 15.03.2010 No. 255-IV; dated 19.03.2010 No. 258-IV; dated 06.01.2011 No. 378-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 22.07.2011 No. 479-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 04.07.2012 No. 25-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 10.07.2012 No. 36-V(shall be enforced upon expiry of ten calendar days after its first official publication); dated 06.03.2013 No. 81-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 04.07.2013 No. 131-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 13.01.2014 No. 159-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 16.05.2014 No. 203-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 14. Rights of the authorized body
1. An authorized body shall have a right within its competence to:
1) develop the model agreements, concluded by the natural monopoly entities, with the consumers of regulated services (goods, works), and represent it for confirmation to the Government of the Republic of Kazakhstan;
2) make decision on inclusion of entities, carrying out activity in the scopes of natural monopolies, in the state register of the natural monopoly entities or on exclusion from it;
3) adopt decisions, compulsory for the natural monopoly entities on introduction, amendment or termination of the state regulation and control;
4) adopt decisions, regulating and monitoring activity of the natural monopoly entities in accordance with this Law and other legislative acts of the Republic of Kazakhstan;
5) adopt decisions within its competence on facts of violations of this Law on restraint of violations and elimination of their consequences in the scopes of natural monopolies;
6) introduce the binding prescriptions, to the natural monopoly entities in the cases, established by the legislative acts of the Republic of Kazakhstan on conclusion of the contracts for the services of the natural monopoly entities with the consumers, introduction of amendments in the concluded contracts;
6-1) introduce the binding prescriptions to the entities of regulated market on fulfilment of obligations by them, provided by Article 7-3 of this Law;
7) introduce the binding prescriptions, as well as prescriptions on reorganization of the natural monopoly entities and (or) on assignment of assets to the entities of the natural monopolies, state bodies in the cases of violation by them the legislation of the Republic of Kazakhstan on natural monopolies and regulated markets;
8) apply to court in the cases of violation of this Law;
9) request and acquire information, necessary for carrying out of its powers, from individuals and legal entities, as well as the state bodies, bodies of local self-government, as well as their civil servants, with compliance with the requirements, established by the legislative acts of the Republic of Kazakhstan to disclosure of information, constituent commercial and other legally protected secret;
10) open and examine the cases on administrative offences, as well as impose administrative penalties according to the procedure, established by the Code of the Republic of Kazakhstan on administrative offences;
11) instigate the change of tariffs (prices, rates of charges) on the regulated services (goods, works) of the natural monopoly entities or its limit levels and tariff estimates of the natural monopoly entities in in accordance with the established procedure;
12) (Is excluded by the Law of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009);
13) establish the terms and the amount of reduction of regulatory technical losses to the natural monopoly entities;
13-1) carry out monitoring of prices of the entities of regulated markets;
13-2) control prices for goods (works, services), realized by the entities of regulated market;
13-3) carry out control of maintenance of the procedure of price formation by the entities of regulated markets;
13-4) carry out permissive control;
14) establish duration of tariffs (prices, rates of charges) on the regulated services (goods, works) of the natural monopoly entity not later than twelve months, except of the cases, provided by paragraph 5 of Article 18 of this Law;
15) confirm the procedure of maintenance of separate accounting of incomes, expenses and committed assets on each type of regulated services (goods, works) and in general on other activity;
16) coordinate the candidacy of appointed rehabilitation manager and rehabilitation plan of the natural monopoly entity;
17) confirm the tariffs (prices, rates of charges) or their limit levels on the regulated services (goods, works) of the natural monopoly entity in recognition of the requirements to the quality, established by the state bodies within its competence;
17-1) coordinate the amount and charging mechanisms for acquisition and installation of the metering devices of the regulated communal services (goods, works) in accordance with the procedure, established by it;
17-2) confirm the amount of payment for regulated communal services for the consumers, not having the metering devices of the regulated communal services;
18) coordinate the methods of separate record-keeping of incomes, expenses and committed assets on types of regulated services (goods, works) of the natural monopoly entities in accordance with the established procedure;
18-1) coordinate the development plans of heat and electric networks, gas-distribution system, as well as water supply networks and canalization of the cities, districts and regions;
19) confirm the procedure and conditions of conducting of asset revaluation of the natural monopoly entity in coordination with the authorized body in the field of valuation activity;
20) confirm the investment programs (projects) of the natural monopoly entities, considered upon confirmation of tariffs (prices, rates of charges) or their limit levels jointly with the relevant state body;
20-1) (Is excluded - dated 5 July, 2006 No. 166 (shall be enforced from the date of its official publication);
21) give the explanations on issues of the legislation of the Republic of Kazakhstan on natural monopolies and regulated markets;
22) carry out other rights, provided by this Law, other Laws of the Republic of Kazakhstan, the acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.
2. (Id excluded – dated 5 July, 2006 No. 166 (shall be enforced from the date of its official publication).
3. An authorized body shall bear responsibility for disclosure of information, constituent the state secrets, commercial and other legally protected secret in accordance with the Laws of the Republic of Kazakhstan.
Footnote. Article 14 is in the wording of the Law of the Republic of Kazakhstan dated 20.12.2004 No. 13 (shall be enforced from 01.01.2005); as amended by the Laws of the Republic of Kazakhstan dated 14.01.2006 No. 120 (shall be enforced from the date of its official publication); dated 05.07.2006 No. 166 (shall be enforced from the date of its official publication); dated 27.07.2007 No. 316 (shall be enforced from the date of its official publication); dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009); dated 15.03.2010 No. 255-IV; dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011); dated 09.01.2012 No. 533-IV (shall be enforced upon expiry of 10 calendar days after its first official publication); dated 04.07.2012 No. 25-V (shall be enforced upon expiry of ten calendar days after its first official publication); от 16.05.2014 № 203-V (вводится в действие по истечении десяти календарных дней после дня его первого официального опубликования) от 29.09.2014 № 239-V (вводится в действие по истечении десяти календарных дней после дня его первого официального опубликования).
Article 14-1. Obligations of the authorized body
1. An authorized body shall be obliged to:
1) make decision on confirmation of temporary compensated tariff for compensation of losses, caused by the natural monopoly entity, to the consumers, in the cases:
illegal overstatement of tariff (price, rate of charge) or its limit level;
non-execution of the investment programs (projects), included upon confirmation of tariffs (prices, rates of charges) or their limit prices;
excess of items of expenditure over the limits of regulatory technical losses, technical and technology based standards of consumption of raw materials, materials, fuel, energy, confirmed by the authorized body, more than five percent;
illegal diversion of funds of amortization deductions;
refusal of execution of cost items of tariff estimate more than five percent of the amounts, confirmed by the authorized body, except of the case, provided by subparagraph 5-2) of Article 6 of this Law.
Decision on confirmation of temporary compensated tariff of regional electric grid company may be adopted only in the cases, provided by the second, third and fifth items of this subparagraph;
Decision on confirmation of temporary compensated tariff, except of the cases, provided by the second and (or) sixth of this subparagraph shall be adopted upon the expiration of limit level of tariff (prices, rates of charges);
2) give reason for refusal in a written form in acceptance to the application processing of the natural monopoly entity for confirmation or change of tariffs (prices, rates of charges) or its limit levels;
3) introduce the consumers with adopted decisions on issues of regulation of activity of the natural monopoly entities, except those, which contain information, constituent commercial and other legally protected secret;
4) conduct the public hearings upon application processing of the natural monopoly entities for confirmation of tariffs (prices, rates of charges) or its limit levels;
4-1) conduct the financial and (or) technical expertise with the assistance for this the independent experts, state bodies in accordance with the established procedure;
5) determine procedure of:
confirmation of tariff estimates, tariffs (prices, rates of charges) or its limit levels;
provision of the project tariff estimates, tariffs (prices, rates of charges) or its limit levels;
confirmation of temporary decreasing coefficient;
confirmation of temporary compensated tariff;
5-1) carry out control of:
execution of tariff estimate by the natural monopoly entity;
procurements, expenses of which are included upon confirmation of tariffs (prices, rates of charges) or their limit levels and tariff estimates on the regulated services (goods, works) of the natural monopoly entity;
6) inform through the mass media on the cases of violation of this Law and bringing to responsibility the guilty persons;
7) carry out other obligations, provided by this Law, other Laws of the Republic of Kazakhstan, the acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.
2. (Is excluded - dated 5 July, 2006 No. 166 (shall be enforced from the date of its official publication).
Note. Realization of investment programs (projects) with actual financial indices, confirmed below in the investment programs (projects).
Footnote. The Law is supplemented by Article 14-1 in accordance with the Law of the Republic of Kazakhstan dated 26.12.2002 No. 364; in the wording of the Law of the Republic of Kazakhstan dated 20.12.2004 No. 13 (shall be enforced from 01.01.2005); as amended by the Laws of the Republic of Kazakhstan dated 14.01.2006 No. 120 (shall be enforced from the date of its official publication); dated 05.07.2006 No. 166 (shall be enforced from the date of its official publication); dated 27.07.2007 No. 316 (shall be enforced from the date of its official publication); dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009); dated 15.03.2010 No. 255-IV; dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011); dated 04.07.2012 No. 25-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 06.03.2013 No. 81-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 15. The state regulation of activity of the natural monopoly entity
1. The state regulation of activity of the natural monopoly entity shall be carried out by:
1) confirmation of tariff (price, rate of charge) or its limit level, as well as with application of method of comparative analysis, differentiated and investment tariff (prices, rates of charges);
1-1) Is excluded by the Law of the Republic of Kazakhstan dated 15.03.2010 No. 255-IV;
1-2) Is excluded by the Law of the Republic of Kazakhstan dated 15.03.2010 No. 255-IV;
2)confirmation of tariff estimate;
3) confirmation of temporary decreasing coefficient;
4) confirmation of special procedure of formation of expenses;
5) confirmation of procedure of separate record-keeping of incomes, expenses and committed assets on each type of regulated services (goods, works) and in general on other activity;
6) coordination of accounting policy;
7) confirmation of the temporary compensated tariff.
2. The state regulation of activity of the natural monopoly entity, producing the heat energy on the co-generation plant shall be carried out on the basis of complex approach in recognition of peculiarities of technological modes of production of heat and electric energy and formation of price for electric energy on the competitive market.
3. The simplified procedure of the state regulation, confirmed by the Government of the Republic of Kazakhstan shall be applied in respect of activity of the natural monopoly entities of low-power.
Upon that the natural monopoly entities shall have a right to independently change the tariffs (prices, rates of charges) on regulated services (goods, works), tariff estimates once a year on the amount not exceeding the consumer price index on the fact of the previous calendar year.
In the case of such changes of tariff (price, rate of charge), tariff estimate, the natural monopoly entity of low-power shall be obliged to inform the authorized body with delivery of information, specifying to the reasons of change of tariff (price, rate of charge), tariff estimate, not later than five calendar days from the date of change of tariff (price, rate of charge), tariff estimate.
In the case, provided by second part of this paragraph, the tariff (price, rate of charge) on the regulated services (goods, works), tariff estimate, changed by the natural monopoly entity of low-power shall be respectively the tariff (price, rate of charge) and tariff estimate on the regulated services (goods, works).
If it is necessary to change the tariff (price, rate of charge) on the regulated services (goods, works), tariff estimate on the amount, exceeding the consumer price index, the natural monopoly entity of low-power shall be applied to the authorized body with the statement for reconsideration of tariff (price, rate of change), tariff estimate according to the procedure, established by the Government of the Republic of Kazakhstan.
Footnote. Article 15 is in the wording of the Law of the Republic of Kazakhstan dated 26.12.2002 No. 364; as amended by the Laws of the Republic of Kazakhstan dated 09.12.2004 No. 9; dated 14.01.2006 No. 120 (shall be enforced from the date of its official publication); dated 05.07.2006 No. 166 (shall be enforced from the date of its official publication); dated 27.07.2007 No. 316 (shall be enforced from the date of its official publication); dated 15.03.2010 No. 255-IV; dated 06.03.2013 No. 81-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 15-1. Procedure of formation of tariffs (prices, rates of charges) or their limit levels on the regulated services (goods, works) of the natural monopoly entity
1. Tariffs (prices, rates of charges) or their limit levels on the regulated services (goods, works) of the natural monopoly entity, confirmed by the authorized body, shall be less than the cost of expenses, necessary for provision of regulated services (production of goods, works) and consider possibility of receiving of profit, providing the effective functioning of the natural monopoly entity.
2. Upon confirmation of tariff (price, rate of charge) or its limit level, the authorized body shall apply the special procedure of formation of expenses, providing the following provisions:
1) regulation of expenses, included in a tariff (price, rate of charge) or its limit level;
2) restriction of items of expenditure of the natural monopoly entity within the technical and technology based standards of consumption of raw materials, materials, fuel, energy, as well as regulatory technical losses;
3) establishment of list of expenses, not included upon formation of tariff (price, rate of charge) or its limit level;
4) restriction of profit, included in the tariff (price, rate of charge) or its limit level;
5) coordination of applied methods of depreciation deductions of basic assets;
6) coordination of revaluation of basic assets and directions of use of assets of amortization deductions, provided by the tariff estimate of the natural monopoly entity.
Special procedure of formation of expenses shall be confirmed by the authorized body.
2-1. Procedure of formation and confirmation of tariffs (prices, rates of charges) on the regulated services (goods, works) of the natural monopoly entities, carrying out its activity on the public-private partnership agreements, determined by the authorized body shall be provided in the public-private partnership agreement.
3.(Is excluded - dated 5 July 2006 No. 166 (shall be enforced from the date of its official publication).
4. (Is excluded - dated 5 July 2006 No. 166 (shall be enforced from the date of its official publication).
Footnote. The Law is supplemented by Article 15-1 in accordance with the Law of the Republic of Kazakhstan dated 26.12.2002 No. 364; as amended by the Laws of the Republic of Kazakhstan dated 9 December, 2004 No. 9; dated 20 December, 2004 No. 13 (shall be enforced from 1 January, 2005); dated 14 January, 2006 No. 120 (shall be enforced from the date of its official publication); dated 5 July, 2006 No. 166 (shall be enforced from the date of its official publication); dated 05.07.2008 No. 66-IV (the order of enforcement see Article 2); dated 06.03.2013 No. 81-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 04.07.2013 No. 131-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 15-2. Procedure of confirmation of tariff with application of method of competitive analysis
1. Tariff with application of method shall be confirmed in accordance with the calculation methodology of tariff with application of method of competitive analysis, confirmed by the authorized body in coordination with the state body, carrying out the administration in the field of electrical energy industry, for each regional electric grid company for three years broken down by years and shall be annually corrected in recognition of effectiveness of its activity.
2. Regional electric grid company shall be obliged to annually provide information on actual (for the previous calendar year) and planning (for the previous three calendar years) costs and the amounts of rendering services not later the 31 August, as well as on technical-economic indices of activity with application supporting materials.
Procedure of delivery of information shall be determined by the authorized body.
3. Information, provided by the regional electric grid company in accordance with paragraph 2 of this Article, shall be annually considered by the authorized body during eighty-five calendar days from 1 September of the current calendar year.
An authorized body shall be obliged to publish information on date and place of conducting of public hearings in the periodical print publications upon confirmation of tariff not later than ten calendar days up to conducting of public hearings.
Public hearings shall be conducted according to the procedure, established by the Government of the Republic of Kazakhstan not later than ten calendar days up to adoption of decision on confirmation of tariff.
Decision on confirmation of tariff, a copy of which is directed to the regional electric grid company, shall be adopted by the authorized body in accordance with the results of consideration of provided information and conducted public hearings not later than thirty-five calendar days up to introduction it into effect.
Introduction of tariff into effect shall be carried out from the first day of the second month following the month of confirmation of the tariff, except of the tariff, confirmed as a special regulatory action, introduction into effect of which is carried out from the date, determined by the authorized body.
4. Regional electric grid company shall be obliged to bring to the notice of consumer the information on change of tariff not later than thirty calendar days up to introduction it into effect.
5. Requirements of paragraph 2 of Article 15-1, except of the subparagraphs 4), 5) and 6) of the first part of Article 16, 17 and 18 of this Law shall not be distributed to the procedure of confirmation of tariff with application of method of competitive analysis.
Footnote. The Law is supplemented by Article 15-2 in accordance with the Law of the Republic of Kazakhstan dated 15.03.2010 No. 255-IV (the order of enforcement see Article 2); as amended by the Laws of the Republic of Kazakhstan dated 12.06.2014 No. 209-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 15-3. Procedure of confirmation of investment program (project) of the natural monopoly entity and carrying out of information analysis on its execution
1. Investment program (project) for confirmation shall be represented to the authorized body by the natural monopoly entity.
2. Procedure of confirmation of the investment program (project) of the natural monopoly entity shall be determined by the Government of the Republic of Kazakhstan.
Confirmed investment program (project) of the natural monopoly entity shall be placed by the authorized body and the relevant state body in their web-sites.
3. An authorized body shall consider the investment program (project) during thirty calendar days from the date of its representation to the authorized body.
An authorized body shall direct the signed draft decision on confirmation of investment program (project) with application of investment program (project) to the state body, specified in paragraph 5 of this Article according to the results of confirmation of the investment program (project) or shall inform the natural monopoly entity on refusal in confirmation of investment program (project) with application of motivated conclusion.
The draft decision on confirmation of investment program (project) shall provide confirmation of investment program (project), represented by the natural monopoly entity or corrected by the authorized body.
An authorized body shall correct the investment program (project) in the cases and procedure, established by the authorized body.
An authorized body, specified in paragraph 5 of this Article shall direct the signed decision on confirmation of investment program (project) to the authorized body during thirty calendar days from the date of representation of the draft decision on confirmation of investment program (project) or shall inform on need of introduction of amendments and (or) additions in a draft decision on confirmation of investment program (project) with application of motivated conclusion.
4. The reasons for rejection in confirmation of investment program (project) shall be:
1) absence of economic efficiency of investment program (project);
2) absence of sources of financing of investment program (project);
3) absence of supporting documents, represented in accordance with the procedure, confirmed by the Government of the Republic of Kazakhstan in accordance with paragraph 2 of this Article;
4) introduction of the documents, containing unreliable information.
Refusal in confirmation of investment program (project) on other grounds shall not be allowed.
5. Investment program (project) of the natural monopoly entity shall be confirmed by the authorized body jointly with the state body, carrying out the administration by the relevant branch (scope) of the state management, except of the case, specified in the second part of this paragraph.
Investment program (project) of the natural monopoly entity, being the communal state enterprise, included in a local section of the State register of the natural monopoly entities shall be confirmed by the authorized body jointly with the local executive body of region, city of republican significance, the capital.
6. Decision on confirmation of the investment program (project) of the natural monopoly entity shall be executed by the joint decree of the authorized body and the state body, specified in paragraph 5 of this Article, except of the case, specified in the second part of this paragraph.
Decision on confirmation of investment program (project) of the natural monopoly entity, being the communal state enterprise, included in a local section of the State register of the natural monopoly entities shall be executed by the joint legal act of the authorized body and local executive body of region, city of republican significance, the capital.
7. In the period of realization of the investment program (project) annually not later the 1 May of the year, following the accounting period, a natural monopoly entity shall provide information on execution of the investment program (project) to the authorized body, including:
1) information on planed and actual volumes of provided regulated services (goods, works);
2) profits and losses statement;
3) information on actual conditions and size of financing of investment program (project);
4) information on comparison of actual indices of execution of the investment program (project) with indices, confirmed in the investment program (project);
5) explanation of rejection reasons of achieved actual indices from the indices in the confirmed investment program (project).
8. Information analysis on execution of investment program (project) of the natural monopoly entity shall be performed by the authorized body during thirty calendar days from the date of its provision.
9. Carrying out of information analysis on execution of investment program (project) of the natural monopoly entity shall include the following stages:
1) information acquisition on the implementation of the investment program (project);
2) analysis of achieved actual volumes of rendering regulated services (goods, works) and actual expenses;
3) comparison of achieved actual financial result with indices, accepted in the investment program (project);
4) impact assessment of realization of the investment program (project) on change of the level of tariff (price, rates of charges), development of demand for provided regulated services (goods, works) by the natural monopoly entity;
5) preparation of conclusion on the results of information analysis on execution of the investment program (project) of the natural monopoly entity.
Footnote. The Law is supplemented by Article 15-3 in accordance with the Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (shall be enforced upon expiry of ten calendar days after its first official publication); as amended by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 16. Procedure of provision of the project of tariffs (prices, rates of charges) or its limit levels and tariff estimates
1. A natural monopoly entity shall represent an application for consideration of tariffs (prices, rates of charges) upon necessity of confirmation of tariffs (prices, rates of charges) or its limit levels on provided regulated services (goods, works).
2. A natural monopoly entity shall be obliged to provide the projects of tariff estimates and tariffs (prices, rates of charges) with an application on the regulated services, as well as the investment program (project), confirmed according to the established program (except of the natural monopoly entity of low power and newly created natural monopoly entities), and in the existence of excessive losses the plan of measures on its liquidation not later than ninety days up to their introduction into effect.
In case of confirmation of limit level of tariff (price, rates of charges) the natural monopoly entity shall represent an application for consideration of tariff (prices, rates of charges) for one hundred eighty days up to its introduction into effect.
An investment program shall be represented for consideration simultaneously with application for consideration of limit level of tariff (price, rates of charge) by the natural monopoly entity.
In case of reconsideration of tariff (prices, rates of charges), or its limit levels and tariff estimates on the initiative of the authorized body the natural monopoly entity shall be obliged to represent economically feasible estimations and other information in the same amount as upon filling an application for confirmation of the new tariff (price, rate of charge) within one month from the date of receipt of the relevant requirement by the natural monopoly entity.
3.
(Is excluded by the Law of the Republic of Kazakhstan dated 14 January, 2006 No. 120 (shall be enforced from the date of its official publication).
Footnote. Article 16 as amended by the Laws of the Republic of Kazakhstan dated 26.12.2002 No. 364; dated 09.12.2004 No. 9; dated 14.01.2006 No. 120 (shall be enforced from the date of its official publication); dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009); dated 15.03.2010 No. 255-IV; dated 06.03.2013 No. 81-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 17. Procedure of consideration of the projects of tariffs (prices, rates of charges) or its limit levels and tariff estimates
1. In the cases of acceptance for consideration of applications for change of the current tariffs (prices, rates) or their limit levels and tariff estimates on the regulated services (goods, works) of natural monopoly entities, an authorized body shall examine the projects of tariffs (prices, rates of charges) or their limit levels and tariff estimates.
Upon execution of an expertize shall be engaged the independent experts, the state bodies, consumers and their public associations, natural monopoly entities, presenting the project.
2. An authorized body shall be obliged to post information on date and place of conducting of public hearings on its web-site and publish in the periodical print publications:
1) upon confirmation of tariffs (prices, rates of charges) or their limit levels on the regulated services (goods, works) of the natural monopoly entity according to the standard procedure not later than fifteen calendar days;
2) upon confirmation of tariffs (prices, rates of charges) on the regulated services (goods, works) of the natural monopoly entity in accordance with paragraph 5 of Article 18 of this Law not later than seven calendar days.
Requirements of first part of this paragraph shall not be distributed to the natural monopoly entities of low power upon consideration of tariffs (prices, rates of charges) on the regulated services (goods, works).
Public hearings shall be conducted upon confirmation of:
1) limit levels of tariffs (prices, rates of charges) on the regulated services (goods, works) of the natural monopoly entity not later than fifteen calendar days up to adoption of decision on their confirmation;
2) tariffs (prices, rates of charges) on the regulated services (goods, works) of the natural monopoly entity not later than fifteen calendar days up to adoption of decision on their confirmation;
3) tariffs (prices, rates of charges) on the regulated services (goods, works) of the natural monopoly entity in accordance with paragraph 5 of Article 18 of this Law not later than seven calendar days up to adoption of decision on their confirmation;
4) tariffs (prices, rates of charges) on the regulated services (goods, works) of the natural monopoly entity of low power not later than one calendar day up to adoption of decision on their confirmation.
Upon the request of the participants of public hearings after publication of information on date of conducting of public hearings, a natural monopoly entity shall be obliged to provide:
the projects of tariff estimates, tariffs (prices, rates of charges) on the regulated services (goods, works) or their limit levels;
information on reasons of raising of tariffs (prices, rates of charges) on the regulated services (goods, rates of charges) or their limit levels with economically feasible estimations.
Procedure of conducting of public hearings shall be determined by the Government of the Republic of Kazakhstan.
3. Projects of tariffs (prices, rates of charges) on the regulated services (goods, works) of the natural monopoly entities shall be considered by the authorized body during fifty-five calendar days, and in case of confirmation of limit level of tariffs (prices, rates of charges) – during hundred and forty-five calendar days upon condition of presentation of economically feasible estimations in accordance with the requirements of the authorized body. The term of consideration of the projects of tariffs (prices, rates of charges) or their limit levels shall be calculated from the date of filing of an application.
4. Projects of tariffs (prices, rates of charges) on the regulated services (goods, works) of the natural monopoly entity of low power shall be considered by the authorized body during ten calendar days.
5. Requirements of paragraph 1 of this Article shall not be distributed on decisions, adopted by the authorized body in term of emergency regulatory measures.
6. Requirements of second part of paragraph 1 of this Article shall not be distributed on the decisions on confirmation of tariffs (prices, rates of charges) and tariff estimates on the regulated services (goods, works) of the natural monopoly entity of low power.
Footnote. Article 17 is in the wording of the Law of the Republic of Kazakhstan dated 05.07.2006 No. 166 (shall be enforced from the date of its official publication); as amended by the Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 18. Procedure of confirmation of tariffs (prices, rates of charges) or their limit levels and tariff estimates
1.
(Is excluded – No. 364 dated 26.12.2002)
2. Decision on confirmation of tariffs (prices, rates of charges) or its limit levels and tariff estimates on the regulated services (goods, works) of the natural monopoly entity shall be directed to the natural monopoly entity not later than thirty five calendar days up to the moment of introduction it into effect, and a natural monopoly entity of low power – not later than ten calendar days up to introduction it into effect.
3. Confirmation of tariffs (prices, rates of charges) or their limit levels and tariff estimates on the regulated services (goods, works) of the natural monopoly entity may be executed no more than once every twelve months, except of the confirmation of tariffs (prices, rates of charges) and tariff estimates as the special regulatory actions and cases, provided by paragraph 5 of this Article. Introduction into effect of new tariffs (prices, rates of charges) and tariff estimates shall be carried out from the first day of the second month following the month of confirmation of tariffs (prices, rates of charges).
Introduction into effect of new tariffs (prices, rates of charges) on the regulated services (goods, works) of the natural monopoly entity of low power shall be carried out from the first day of the month, following the month of confirmation of tariffs (prices, rates of charges).
Introduction into effect of new tariffs (prices, rates of charges) and tariff estimates, confirmed as the special regulatory actions shall be carried out from the date, determined by the authorized body.
4. A natural monopoly entity shall be obliged to bring to the notice of consumer the information on change of tariffs (prices, rates of charges) or their limit levels not later than thirty days up to introduction it into effect, and a natural monopoly entity of low power – not later than three days up to introduction it into effect.
5. Confirmation of tariffs (prices, rates of charges) and tariff estimates on the regulated services (goods, works) in the simplified procedure shall be executed on:
1) regulated services (goods, works) of new created natural monopoly entity;
2) the new types of regulated services (goods, works), included in accordance with paragraph 2 of Article 4 of this Law;
3) new types of regulated services (goods, works), rendering by the natural monopoly entity, already included in the State register of the natural monopoly entities on other types of regulated services (goods, works);
4) new objects and (or) sites, if the current tariffs on the regulated services (goods, works) of the natural monopoly entity shall be confirmed separately on objects and (or) sites.
The natural monopoly entities, specified in the first part of this paragraph shall be obliged to apply with statement for reconsideration of tariff (price, rate of change) and tariff estimates according to the standard procedure.
Procedure of confirmation of the tariffs (prices, rates of charges) and tariff estimates in the simplified procedure shall be determined by the authorized body, except of the cases, provided in paragraph 3 of Article 15 of this Law.
In case of overstatement of tariff (prices, rates of charges), confirmed in the simplified procedure, an authorized body shall be obliged to make decision on compensation of losses, caused to the consumers simultaneously with introduction of new tariffs (prices, rates of charges).
5-1. A natural monopoly entity, whose assets came to its property in the result of concluded transaction or realization of collation of a debtor – a natural monopoly entity, recognized as a bankrupt shall provide the regulated services (goods, works) to the consumers previously confirmed by the authorized body for the owners of these assets or property, on which recovery is enforced to the tariffs (prices, rates of charges) or their limit levels and tariff estimates in the process of bankruptcy proceedings up to presentation of application for confirmation of tariffs (prices, rates of charges) and tariff estimates on the regulated services (goods, works), but not more than six months.
6. Confirmation of tariff (prices, rates of charges) and tariff estimates on the initiative of the authorized body shall be carried out according to the standard procedure, established by this Law.
7. Duration of the determined value of tariff (price, rate of charge) shall be established upon confirmation of the limit level of tariff (price, rate of charge) by the authorized body.
Footnote. Article 18 as amended by the Laws of the Republic of Kazakhstan dated 26.12.2002 No. 364; dated 09.12.2004 No. 9; dated 14.01.2006 No. 120(shall be enforced from the date of its official publication); dated 05.07.2006 No. 166 (shall be enforced from the date of its official publication); dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009); dated 04.07.2012 No. 25-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 07.03.2014 No. 177-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 18-1. Grounds and procedure of notification or coordination of actions, carried out in the scope of natural monopoly
Footnote. Title of Article 18-1 is in the wording of the Law of the Republic of Kazakhstan dated 17.07.2009 No. 188-IV (the order of enforcement see Article 2).
1. In order of prevention of impairment of rights and legal interests of consumers of regulated services (goods, works) of the natural monopoly entity or control of economically feasible transition of the relevant goods market from the condition of natural monopoly to the condition of competitive market shall be required a preliminary notification or receipt the consent of the authorized body for execution of the following actions:
1) alienation and (or) execution of other transactions with property of the natural monopoly entity, intended for production and provision of the regulated services (goods, works), if the balance cost of alienate property or property of the natural monopoly entity in relation of which shall be made other transactions, included in a bookkeeping balance sheet at the beginning of this year, exceed 0.05 per cent of the balance cost of its assets in accordance with the bookkeeping balance sheet at the beginning of the current year, upon condition that they shall not involve raising of tariffs (prices, rates of charges) or their limit levels on the regulated services (goods, works) of the natural monopoly entity, violation of agreements with the consumers, violation of inextricably related technological system, interruption or a significant volume reduction of provided regulated services (manufactured goods, works);
2) Is excluded by the Law of the Republic of Kazakhstan dated 16.05.2014 No. 203-V (shall be enforced upon expiry of six months after its first official publication);
2-1) hiring by the natural monopoly entity the property, used for provision of regulated services (goods, works), balance cost of which included in the bookkeeping balance sheet at the beginning of this year, exceed 0.05 per cent of the balance cost of its assets in accordance with the bookkeeping balance sheet at the beginning of this year, upon condition, that conclusion of agreement of property lease shall not involve the raising of tariffs (prices, rates of charges) or their limit levels on the regulated services (goods, works) of the natural monopoly entity, violation of agreements with the consumers, violation of inextricably related technological system, interruption or a significant volume reduction of provided regulated services (goods, works);
3) carrying out of other activity, permitted by this Law by the natural monopoly entity;
4) acquisition of shares (share of participation), as well as other forms of its participation in commercial organizations, carrying out activity, permitted for it by this Law by the natural monopoly entity;
Requirements of this subparagraph shall not be distributed on the case of participation of the natural monopoly entity in activity of accounting and finance center on support of renewable energy sources in accordance with the legislation of the Republic of Kazakhstan in the field of support of use of renewable energy sources;
4-1) acquisition of more than ten percent of voting shares (share of participation) in a charter capital of the natural monopoly entity by individual and legal entities (or group of persons);
5) reorganization and liquidation of the natural monopoly entity;
1-1. The list of types of activity, technologically linked with the regulated services (goods, works), shall be confirmed by the authorized body jointly with the relevant state body, carry out administration of relevant branch (scope) of the state management.
2. For commission of actions, mentioned in subparagraph 1) – 4), 5) of paragraph 1 of this Article, a natural monopoly entity shall be obliged to represent an application in an authorized body on giving of consent on carrying out of such actions and turn in information, necessary for adoption of decision.
A list of documents for submission of application, procedure of their presentation and consideration shall be determined by the authorized body.
A natural monopoly entity of low power shall be obliged to direct information in the authorized body on its intendment to commit the specified actions not less than ten calendar days up to commission of actions, mentioned in subparagraph 2), 2-1), 3), 4) b 5) of paragraph 1 of this Article.
An individual and legal entity shall be obliged to previously direct information in the authorized body for commission of actions, mentioned in subparagraph 4-1) of paragraph 1 of this Article.
A natural monopoly entity, rendering assistance of airports, shall be obliged to direct notification in the authorized body on its intendment to commit the specified actions not less than ten calendar days up to commission of actions, mentioned in subparagraph 3) of paragraph 1 of this Article.
3. A natural monopoly entity shall be obliged to additionally implement the following conditions to carry the consent on carrying out of activity, mentioned in subparagraph 3) of paragraph 1 of this Article:
1) incomes, gaining by the natural monopoly entity from this activity, shall pay off the expenses, necessary for its implementation;
2) carrying out of activity shall not bring to restriction of competition on the relevant market of services (goods, works).
A natural monopoly entity shall be obliged to present report on a quarterly basis on fulfillment of conditions, provided by this paragraph, on form, established by the authorized body, not later than the last day of the month following the reporting quarter.
Requirements, provided by this paragraph shall not be distributed on the natural monopoly entities, rendering the services of airports.
3-1. Upon direction of notification, a natural monopoly entity, rendering the services of airports shall be obliged to fulfill the following conditions:
1) incomes, gaining from other activity, shall pay off the expenses, necessary for its implementation;
2) carrying out of activity shall not bring to restriction of competition on the relevant market of services (goods, works);
3) carrying out of other activity shall not bring to redeployment of basic and financial assets, necessary for production and provision of regulated services (goods, works), which bring to reduction of volume and quality of regulated services (goods, works) of the natural monopoly entities.
Upon revelation of violations of requirements, provided by first part of this paragraph, on the part of the natural monopoly entities, rendering the services of airports, carrying out other activity of the natural monopoly entities, rendering the services of airports shall be prohibited.
4. An authorized body shall decline an application, if his (her) approval may lead to the consequences, mentioned in the first item of paragraph 1 of this Article, as well in the cases, if all necessary documents are not presented by the applicant or presented information in it is unreliable.
5. An authorized body shall consider an application and inform the applicant on adopted decision in written form not later than thirty days from the date of reception of application.
In case, if the additional information is necessary for adoption of decision, an authorized body shall have a right to inquire it from the applicant and increase the time period for consideration of an application for thirty days upon condition, that such request with the notice on extension of consideration of application is directed to the applicant not later than fifteen days from the date of reception of application.
6. Refusal to satisfy application may be appealed by the applicant in a judicial procedure.
Footnote. The Law is supplemented by article 18-1 in accordance with the Law of the Republic of Kazakhstan dated в 26.12.2002 No. 364; as amended by the Laws of the Republic of Kazakhstan dated 09.12.2004 No. 9; dated 20.12.2004 No. 13 (shall be enforced from 01.01.2005); dated 05.07.2006 No. 166 (shall be enforced from the date of its official publication); dated 17.07.2009 No. 188-IV (the order of enforcement see Article 2); dated 15.03.2010 No. 255-IV; dated 04.07.2012 No. 25-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 04.07.2013 No. 128-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 04.07.2013 No. 132-V(shall be enforced upon expiry of ten calendar days after its first official publication); dated 16.05.2014 № 203-V (shall be enforced upon expiry of six months after its first official publication).
Article 18-2.(Is excluded by the Law of the Republic of Kazakhstan dated 9 December, 2004 No. 9)
Article 18-3. Reorganization and liquidation of the natural monopoly entity
1. Procedures of reorganization or liquidation may be applied to the natural monopoly entity in accordance with the legislation of the Republic of Kazakhstan.
2. State reregistration of legal entity – natural monopoly entity, as well as registration of termination of its activity shall be carried out by the registering body only with the prior consent of the authorized body.
3. Rehabilitation procedures may be applied to the natural monopoly entity in order of prevention of interruption or significant reduction of volumes of provided regulated services (manufactured goods, works).
Footnote. Is supplemented by Article 18-3 in accordance with the Law of the Republic of Kazakhstan dated 26.12.2002 No. 364; as amended by the Laws of the Republic of Kazakhstan dated 09.12.2004 No. 9; dated 15.07.2011 No. 461-IV (shall be enforced from 30.01.2012).
Article 18-4. Peculiarities of carrying out of procurements by the natural monopoly entity
Footnote. Title of Article 18-4 is in the wording of the Law of the Republic of Kazakhstan dated 17.07.2009 No. 188-IV (the order of enforcement see Article 2).
1. Procurement of services (goods, works), expenses on which shall be entered upon confirmation of tariffs (prices, rates of charges) or their limit levels and tariff estimates on the regulated services (goods, works) of the natural monopoly entity, shall be carried out in the form of tender, except of the cases, provided by paragraph 4, 4-1 and 5 of this Article.
2. Tender shall be held by the natural monopoly entity with observance of the following principles:
1) openness and publicity of holding of tender procedure;
2) providing of equal opportunities to all potential suppliers for participation in tender;
3) fair competition among potential suppliers;
4) support of domestic commodity producer s and domestic suppliers of works, services.
2-1. A natural monopoly entity shall directly make procurement of strategic goods from the producers of strategic goods, except of the cases:
a deficit of electric power on the relevant goods market upon absence of access on the market of centralized trading of electric energy and power;
inconsistency to the conditions of the natural monopoly entity for participation in wholesale market for electrical energy, presenting to the consumers;
procurement of electric energy for economic needs of the natural monopoly entities in the scopes of transmission and distribution of electric energy;
procurement of gas from the organizations, carrying out its import, upon deficit of gas;
procurement of electric energy in accordance with the legislation of the Republic of Kazakhstan in the field of support of using of renewable energy source.
3. Procedure of pursuance of procurement shall be determined by the authorized body.
This procedure shall not be distributed on the case of pursuance of procurements:
in accordance with the legislation of the Republic of Kazakhstan on the state procurements;
by the natural monopoly entities, fifty percent or more of the voting shares (share of participation) directly or indirectly belong to the national management holding.
Indirect affiliation shall signify belonging on the right of ownership or trust management of shares (shares of participation in the charter capital) of natural monopoly entities through the subsequent organization to the national managing holding company.
3-1. A natural monopoly entity shall have a right to act as a unified tender organizer for their affiliated persons.
4. In the cases, established by the legislation of the Republic of Kazakhstan, a natural monopoly entity may pursue procurements from one source, a closed tender, tender with the use of two-stage procedures, request of price quotations.
4-1. Procurement of electric and (or) heat energy from energy producing organization, using renewable energy sources, shall be carried out in accordance with the legislation of the Republic of Kazakhstan in the field of support of using of renewable energy sources.
5. A natural monopoly entity shall have a right to carry out procurements of goods (works, services) without holding of a tender in case, if the annual purchase amounts in terms of value are not exceed the limit amount, established by the Government of the Republic of Kazakhstan.
5-1. Two and more of affiliated person of the natural monopoly entity shall not have a right to participate in a tender (lot), held by the specified natural monopoly entity, except of the cases, established by the Government of the Republic of Kazakhstan.
6. Upon the request of a tenderer, he (she) shall be provided by the comprehensive written information on his (her) results and reasons of choosing the winner.
7. An authorized body shall have a right to overturn the results and require a natural monopoly entity to retender up to conclusion of a contract with the successive tenderer, held with violations of the legislation of the Republic of Kazakhstan on the natural monopolies and regulated markets by the natural monopoly entity.
8. An authorized body shall have a right to reject an application of the natural monopoly entity for confirmation of tariffs (prices, rates of charges) or their limit levels in case of violation by them the requirements on holding of a tender, established by the legislation of the Republic of Kazakhstan.
9. Requirements, provided by this Article shall not bedistributed on the natural monopoly entities, carrying out procurements of balancing electric energy, electric energy on the centralized trading, spot market in accordance with the legislation of the Republic of Kazakhstan on electric power industry, as well as on the natural monopoly entities of low power and regional electric grid company.
Footnote. The Law is supplemented by Article 18-4 in accordance with the Law of the Republic of Kazakhstan dated 26.12.2002 No. 364; as amended by the Laws of the Republic of Kazakhstan dated 09.12.2004 No. 9; dated 20.12.2004 No. 13 (shall be enforced from 01.01.2005); dated 05.07.2006 No. 166 (shall be enforced from the date of its official publication); dated 27.07.2007 No. 316 (shall be enforced from the date of its official publication); dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009); dated 04.07.2009 No. 166-IV; dated 15.03.2010 No. 255-IV; dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011); dated 01.02.2012 No. 551-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 04.07.2013 No. 128-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 18-5. Carrying out the state control in the scopes of natural monopolies and on the regulated markets
1. The state control in the scopes of natural monopolies and on the regulated services shall be carried out in the form of verification and other forms.
2. Verification shall be carried out in accordance with the Law of the Republic of Kazakhstan “On the state control and supervision in the Republic of Kazakhstan”. Other forms of the state control shall be carried out in accordance with this Law.
Footnote. Article 18-5 is in the wording of the Law of the Republic of Kazakhstan dated 17.07.2009 No. 188-IV(the order of enforcement see Article 2); as amended by the Law of the Republic of Kazakhstan dated 06.01.2011 No. 378-IV (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 18-6. Procedure of conducting of verifications of the natural monopoly entities
Footnote. Article 18-6 is excluded by the Law of the Republic of Kazakhstan dated 17.07.2009 No. 188-IV(the order of enforcement see Article 2).
Article 18-7. Decision of the authorized body on the results of verification of the natural monopoly entity of the regulated market
Footnote. Title of Article 18-7 as amended by the Law of the Republic of Kazakhstan dated 17.07.2009 No. 188-IV(the order of enforcement see Article 2).
Following the results of consideration of the act on the results of verification of a natural monopoly or entity of regulated market, the authorized body shall:
1) make conclusion on absence of grounds in initiation of proceedings on administrative offences;
2) initiate proceedings on administrative offences;
3) bring in a prescription to the natural monopoly entity or entity of the regulated market on elimination of elicited facts of violation of the legislation of the Republic of Kazakhstan on the natural monopolies and regulated markets;
Note of RCLI!
Subparagraph 4) is provided to be in the wording dated 04.07.2014 No. 233-V (shall be enforced from 01.01.2015).
4) transfer materials to the law enforcement bodies for examination of issue on initiation of criminal case;
5) transfer materials in other state bodies for consideration and adoption of relevant measures.
Footnote. The Law is supplemented by Article 18-7 in accordance with the Law of the Republic of Kazakhstan dated 31.01.2006 No. 125; as amended by the Laws of the Republic of Kazakhstan dated 17.07.2009 No. 188-IV (the order of enforcement see Article 2); dated 15.03.2010 No. 255-IV.
Article 19. Consequences of violation of this Law
1. In case of violation of this Law, the natural monopoly entities and regulated markets, the state bodies and their heads shall be obliged to:
1) terminate violation of this Law and eliminate its consequences;
2) reestablish original position or perform other acts, specified in a prescription;
3) take measures for compensation of caused damage and (or) losses directly or by temporary reduction of tariffs (prices, rates of charges);
4) cancel or change the act, not relevant to this Law.
2. An authorized body shall establish the temporary compensated tariff on the grounds of materials of conducted by them verifications of the natural monopoly entity, on the results of analysis of execution of tariff estimate and (or) information analysis of the natural monopoly entity by the natural monopoly entity on execution of investment program (project) in recognition of official bank rate of the National Bank of the Republic of Kazakhstan on the date of adoption of decision. Introduction of temporary compensated tariff shall be carried out from the first date of the second month, following the month of conduct of verification, analysis of execution by the natural monopoly entity of tariff estimate and (or) analysis of information of the natural monopoly entity on execution of investment program (project).
Information on adopted decision shall be placed on web-sites of the authorized body.
Footnote. Article 19 as amended by the Laws of the Republic of Kazakhstan dated 26.12.2002 No. 364; dated 09.12.2004 No. 9; dated 15.03.2010 No. 255-IV; dated 04.07.2012 No. 25-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 19-1. Prescription of the authorized body
1. Prescription of the authorized body shall be executed by the natural monopoly entities, regulated markets, state bodies, and their heads in terms, provided by the decisions (prescriptions), but not later than thirty days from the date of its reception.
2. In case of non-execution of prescriptions by the state bodies on cancel or change of acts, adopted with violation of this Law, or on restitution, an authorized body shall have a right to apply to the court with a claim on recognition of this acts as invalid (in whole or in part) and (or) on compulsion to reestablish original position.
3. In case of non-execution of prescription by the natural monopoly entity, regulated market, an authorized body shall have a right to make a claim in a court on compulsion of the natural monopoly entity, regulated market to perform acts, specified in prescription.
Footnote. Is supplemented by Article 19-1 by the Law of the Republic of Kazakhstan dated 9 December, 2004 No. 9; as amended by the Law of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009).
Article 20. Responsibility for violation of this Law
Persons, guilty of violating of this Law, shall bear responsibility in accordance with the Laws of the Republic of Kazakhstan.
Footnote. Article 20 is in the wording of the Law of the Republic of Kazakhstan dated 26 December, 2002 No. 364
Article 21. Compensation of losses of the regulated market, caused by the violation of this Law by the natural monopoly entity
Footnote. Title of Article 21 as amended by the Law of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009).
Action (omission) of the natural monopoly entity, regulated market, contradicted to this Law and inflicted damage to other individual or legal entity, as well as by overstatement of tariffs (prices, rates of charges) or their limit levels of unjustified refusal in conclusion of agreements on provision of regulated services (goods, works) and in their execution shall entail compensation of losses by the natural monopoly entity, regulated market in accordance with the civil legislation of the Republic of Kazakhstan.
Footnote. Article 21 is in the wording of the Law of the Republic of Kazakhstan dated 26 December, 2002 No. 364; as amended by the Laws of the Republic of Kazakhstan dated 9 December, 2004N 9; dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009).
Article 22. Compensation of losses, caused to the natural monopoly entity, regulated market by the illegal decisions, actions (omission) of the authorized body, as well as by the civil servants
Footnote. Title of Article 22 as amended by the Law of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009).
In case, if by illegal decisions, as well as actions (omission) of the authorized body and its civil servants the losses are incurred to the natural monopoly entity, regulated market, he (she) shall have a right to require compensation of these losses according to the procedure, established by civil legislation of the Republic of Kazakhstan.
Footnote. Is supplemented by Article 22 of the Law of the Republic of Kazakhstan dated 26 December, 2002 No. 364; as amended by the Law of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009).
Article 23. Transitional provisions
Natural monopoly entities, rendering the regulated communal services, shall be obliged to provide consumers, having the metering devices, in accordance with the concluded agreements of metering devices of regulated communal services (individual metering devices of water) up to 1 January, 2009.
Natural monopoly entities shall be obliged to formulate the plan of measures on their liquidation in the existence of excessive losses up to 1 March, 2009.
Natural monopoly entities, rendering the regulated communal services and consumers of regulated communal services shall be obliged to install the general housing metering devices of heat energy up to 1 August, 2009.
Regional electric grid company:
not having the investment program, confirmed in accordance with the established procedure, shall be obliged to develop and represent the project of investment program for confirmation on 2011 – 2012 up to 31 March, 2010;
rendering the services without application of limited levels of tariffs, shall be obliged to file an application for confirmation of limited level of tariff on 2011- 2012 in accordance with the established procedure.
Exceptions for regional electric grid companies, provided by subparagraph 4-2) of paragraph 1 of Article 5, subparagraphs 4), 7-2) and 11) of Article 7, subparagraph 5-1) and 5-4) pf paragraph 1 of article 13, subparagraph 1 of paragraph 1 of Article 14-1 and paragraph 9 of Article 18-4 of this Law, shall be enforced from the date of introduction into effect of tariff with application of the method of comparative analysis.
Footnote. Article 23 is in the wording of the Law of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (shall be enforced from 01.01.2009); as amended by the Law of the Republic of Kazakhstan dated 15.03.2010 No. 255-IV.
The President
of the Republic of Kazakhstan
