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I.O.'S ORDER OF THE CHAIRMAN OF THE AGENCY OF THE REPUBLIC OF KAZAKHSTAN ON REGULATION OF NATURAL MONOPOLIES AND PROTECTION OF THE COMPETITION

of December 12, 2003 No. 309-OD

About approval of the Method of calculation of rates for transportation services of natural gas on distribution pipelines

1. Approve the enclosed Method of calculation of rates for transportation services of natural gas on distribution pipelines.

2. To department of administrative and territorial work of the Agency of the Republic of Kazakhstan on regulation of natural monopolies and protection of the competition (Dosan B. B.) to bring this order to the attention of structural divisions and territorial authorities of the Agency of the Republic of Kazakhstan on regulation of natural monopolies and protection of the competition.

3. I reserve control of execution of this order.

4. This order becomes effective from the date of signing.

 

Acting Chairman Zh. Ertlesov

Approved by the order of the Agency of the Republic of Kazakhstan on regulation of natural monopolies and protection of the competition against December 12, 2003 No. 309-OD

Method of calculation of rates for transportation services of natural gas on distribution pipelines

1. General provisions

2. The technique determines the mechanism of calculation of rates for transportation services of natural gas for distribution pipelines and extends to all organizations providing these services to third parties irrespective of patterns of ownership.

3. In the Technique the following concepts are applied:

the consumer - the physical person or legal entity using services of the gas-distributing organization;

the gas-distributing organization - the organization performing development and operation of distribution pipelines, constructions on them which are in property or on other legal causes, rendering transportation services of natural gas on these networks based on the available license for this type of activity;

the gas supplying organization - the organization performing sale to consumers of the purchased natural gas;

above-standard (commercial) losses - the losses of natural gas connected with servicing of distribution pipelines, exceeding the normative technical losses approved by competent authority;

normative technical losses - the losses connected with maintenance of distribution pipelines, approved by competent authority.

Other concepts and terms used in the Technique are applied according to the current legislation of the Republic of Kazakhstan.

2. Mechanism of calculation of rate for transportation services of natural gas for distribution pipelines

4. The basic principles of calculation of rate are:

1) the rate for transportation services of natural gas on distribution pipelines shall be not lower than the cost of the costs necessary for provision of services and consider possibility of profit earning, the gas-distributing organization providing effective functioning;

2) the rate for transportation services of natural gas on distribution pipelines is established single for all consumers regardless of transportation distance.

2.1. Calculation of rate for transportation services of natural gas for distribution pipelines

5. The rate for transportation services of natural gas on distribution pipelines (T) is calculated by formula

Формула к Приказу от 12.12.2003 года №309

where:

Z - economically reasonable costs of the gas-distributing organization for rendering transportation services of natural gas (in tenge) calculated taking into account requirements of Rules about the special procedure for forming of costs applied in case of approval of rates (the prices, rates of charge) on services (goods, works) of the subjects of natural monopoly approved by the order of the Agency of the Republic of Kazakhstan on regulation of natural monopolies and protection of the competition against July 30, 2003 of N185-OD (further - the Special procedure);

  - profit (in tenge);

V - the total predicted annual amount of the rendered transportation services of natural gas on distribution pipelines (in 1000 m 3).

2.1.1. Forming of costly part of rate for transportation services of natural gas on distribution pipelines

6. Forming of the costs considered when calculating rates for transportation services of natural gas for distribution pipelines is determined according to the Special procedure.

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