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LAW OF THE REPUBLIC OF KAZAKHSTAN

of December 27, 2018 No. 204-VI ZRK

About natural monopolies

Chapter 1. General provisions

Article 1. Purposes of this Law

The purposes of this Law are:

1) achievement of balance of consumer interests and subjects of natural monopolies;

2) determination of the legal basis of state regulation of activities in spheres of natural monopolies;

3) ensuring availability of regulated services to consumers;

4) ensuring protection of consumer interests and subjects of natural monopolies;

5) ensuring publicity and transparency of procedures of state regulation of activities in spheres of natural monopolies;

6) stimulation of improvement of quality of regulated services and satisfaction of demand for them.

Article 2. Legislation of the Republic of Kazakhstan on natural monopolies

1. The legislation of the Republic of Kazakhstan on natural monopolies is based on the Constitution of the Republic of Kazakhstan and consists 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 other rules, than those which contain in this Law then are applied rules of the international treaty.

Article 3. Operation of this Law

1. This Law extends to the relations arising in the market of the services of the Republic of Kazakhstan provided by subjects of natural monopolies.

2. The relations which are not covered by this Law are regulated by the legislation of the Republic of Kazakhstan in the field of entrepreneurship and other legislation of the Republic of Kazakhstan.

3. To the subject of natural monopoly providing the regulated services referred by this Law to spheres of natural monopolies, state regulation of activities and the state control are applied only to provision of regulated services.

4. Operation of this Law does not extend to the individual entrepreneurs and legal entities performing the activities referred to spheres of natural monopolies in one of the following cases when:

1) activities are connected with construction and operation of the objects intended only for own needs;

2) the activities provided by the subitem 2) of Item 1 of article 5 of this Law with observance in total of the following conditions are performed:

income from such activities shall not exceed 1 percent of the income from all activities in one calendar year;

preserving level of the rate operating for January 1, 2012.

Article 4. The basic concepts used in this Law

In this Law the following basic concepts are used:

1) The Government for Citizens State corporation (further - the State corporation) - the legal entity created according to the decision of the Government of the Republic of Kazakhstan for rendering the state services, services in issue of specifications on connection to networks of subjects of natural monopolies and services of subjects of the quasi-public sector according to the legislation of the Republic of Kazakhstan, the organization of work on reception of applications on rendering the state services, services in issue of specifications on the connection to networks of subjects of natural monopolies, services of subjects of the quasi-public sector and issue of their results to uslugopoluchatel by the principle of "one window", and also ensuring rendering the state services electronically performing state registration of the rights to real estate in the place of its stay;

2) inappropriate use of means of the depreciation charges - the direction of the means provided in the approved rate and (or) the approved tariff estimate due to the depreciation charges on the purposes which are not connected with capital investments in the fixed assets used in provision of regulated service and return of principal debt on the attracted credit resources;

3) controlled costs - the costs of the subject of natural monopoly connected with provision of regulated service which size depends on activities of the subject of natural monopoly;

4) uncontrollable costs - the costs of the subject of natural monopoly connected with provision of regulated service which size does not depend on activities of the subject of natural monopoly;

5) the metering device - the technical device intended for commercial accounting of individual and (or) all-house consumption of regulated services, allowed for use according to the procedure, determined by the legislation of the Republic of Kazakhstan;

6) public hearings - the procedure of discussion of the project of rate, regulations of consumption of utilities in spheres of natural monopolies for the consumers who do not have metering devices and carrying out reports before consumers and other interested persons;

7) investing program - the actions plan on attachment and return of the funds allocated for expansion, upgrade, reconstruction, updating, maintenance of the existing assets and creation of new assets of the subject of natural monopoly for the purpose of receipt of the technical and economic and (or) ecological effects expressed in achievement of target indicators of investing program or preserving indicators of activities of the subject of natural monopoly at the existing level;

8) indexation method - forming of rate by annual indexation of the approved rate by the subject of natural monopoly of low power;

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