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THE RESOLUTION OF THE NATIONAL COMMISSION PERFORMING STATE REGULATION IN THE SPHERE OF POWER AND UTILITIES OF UKRAINE

of September 14, 2017 No. 1135

About approval of the Procedure for determination of regulatory base of assets of subjects of natural monopolies which perform (intend to perform) economic activity on centralized water supply and drainage system

According to article 17 of the Law of Ukraine "About the National commission performing state regulation in the sphere of power and utilities", article 6 of the Law of Ukraine "About state regulation in the sphere of utilities" to the Law of Ukraine "About natural monopolies" the National commission performing state regulation in spheres of power and utilities decides:

1. Approve the Procedure for determination of regulatory base of assets of subjects of natural monopolies which perform (intend to perform) economic activity on centralized water supply and drainage system which is applied.

3. This resolution becomes effective from the date of, its publication following behind day in the official printing publication - the Pravitelstvenny Kuryer newspaper.

Chairman of NKREKP

D. Vovk

Approved by the Resolution of the National commission performing state regulation in the sphere of power and utilities of Ukraine of September 14, 2017 No. 1135

Procedure for determination of regulatory base of assets of subjects of natural monopolies which perform (intend to perform) economic activity on centralized water supply and drainage system

1. General provisions

1.1. Action of this Procedure extends to subjects of natural monopolies which perform (intend to perform) economic activity on centralized water supply and/or water disposal, are licensees of the National commission performing state regulation in spheres of power and utilities (further - NKREKP), and create rates for centralized water supply and/or water disposal on the principles of the stimulating regulation (further - licensees).

1.2. This Procedure establishes the mechanism of determination of regulatory base of assets of licensees, groups of the assets which are part of regulatory base of assets, terms of their useful use and depreciation methods for calculation of the necessary income from implementation of economic activity for centralized water supply and/or water disposal on the principles of the stimulating regulation.

1.3. The term "regulatory base of assets" is used in the value given in the Law of Ukraine "About natural monopolies".

1.4. Accounting of regulatory base of assets of economic activity on centralized water supply and/or water disposal is conducted separately from other types of economic activity of the licensee.

1.5. Accounting of regulatory base of the assets entered before transition to the stimulating regulation is conducted separately from accounting of regulatory base of the assets entered after transition to the stimulating regulation.

1.6. The regulatory base of assets of the licensee is considered on original and residual cost and determined for the beginning every year of the regulatory period as change from the date of transition to the stimulating regulation of cost and structure of the assets used for implementation of economic activity on centralized water supply and/or water disposal.

The original cost of regulatory base of assets is determined according to Item 2.3 of Chapter 2, Items 3.4 and 3.5 of Chapter 3 presents of the Procedure.

Residual cost of regulatory base of assets is determined according to Items 2.33 - 2.40 Chapters 2 of the Procedure for forming of rates for centralized water supply and drainage system on the principles of the stimulating regulation approved by the resolution of the National commission performing state regulation in spheres of power and utilities of September 14, 2017 No. 1132.

1.7. As a part of regulatory base of assets non-current assets which are directly used for implementation of economic activity on centralized water supply and/or water disposal are considered and belong to the licensee on the property right, uses or are in concession.

Infrastructure which is used according to agreements of concession is considered as a part of regulatory base of assets taking into account provisions of the laws of Ukraine "About concessions", "About features of transfer to lease or concession of objects in the spheres of heat supply, water supply and drainage system which are in municipal property".

1.8. The cost of the created, reconstructed and modernized objects which are directly used for implementation of economic activity on centralized water supply and/or water disposal is considered in case of determination of regulatory base of assets from the date of input of the corresponding objects in operation in the procedure established by the legislation.

1.9. Lease, concessionary, leasing and other payments for use of property which is not in property of the licensee and is directly used for implementation of economic activity on centralized water supply and/or water disposal are not considered as a part of regulatory base of assets.

1.10. The change in value of assets according to financial accounting is not considered in case of determination of original and residual cost of regulatory base of assets.

1.11. Regulatory base of assets the cost portion of assets of general production and general economy appointment is included.

Allocation base of asset cost of general production and general economy appointment are direct expenses on compensation of personnel by types of economic activity of the licensee.

1.12. Are not included regulatory base of assets:

parcels of land and corporeal rights to them;

non-productive subjects of non-current assets (including objects of social infrastructure);

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