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RESOLUTION OF THE CABINET OF MINISTERS OF THE AZERBAIJAN REPUBLIC

of December 30, 2005 No. 247

About approval of Rules of ensuring the state control of forming and application of rates (prices) to which state regulation is applied

(In edition of the Resolution of the Cabinet of Ministers of the Azerbaijan Republic of 16.07.2014 No. 245)

For the purpose of ensuring execution of Item 3.4 of the Presidential decree of the Azerbaijan Republic "About approval of "Provision on Tariff (price) Council of the Azerbaijan Republic" of December 26, 2005 the No. 341 Cabinet of Ministers of the Azerbaijan Republic decides:

1. Approve "Rules of ensuring the state control of forming and application of rates (prices) to which state regulation" is applied (are applied).

2. This resolution becomes effective from the date of signing.

Prime Minister of the Azerbaijan Republic

A. Rasi-Zade

Approved by the Resolution of the Cabinet of Ministers of the Azerbaijan Republic of December 30, 2005 No. 247

Rules of ensuring the state control of forming and application of rates (prices) to which state regulation is applied

I. General provisions

1.1. These rules are prepared according to requirements of the Laws of the Azerbaijan Republic "About natural monopolies", "About regulated prices" for the purpose of ensuring execution of Item 3.4 of the Presidential decree of the Azerbaijan Republic "About approval of "Provision on Tariff (price) council of the Azerbaijan Republic" of December 26, 2005 No. 341.

1.2. These rules regulate questions of ensuring the state control of forming and use of the prices (rates) to which state regulation is applied (further - the prices).

1.3. The state control of forming and use of the prices performs Tariff (price) council of the Azerbaijan Republic (further - Council).

II. Procedure for pricing to which state regulation is applied

2.1. The prices of the subjects making (rendering services) which goods (services) of the price are regulated by the state (further - subjects) are determined according to regulatory legal acts, regulating all expenses connected with income acquisition, and also these rules and the requirement provided by the documents developed on the basis of rules.

2.2. Depending on features of goods (service) which prices are regulated in case of need Council can make the decision on structure (structure) of the expenses included in product cost (services) and also on consumption rates of the main production costs taking into account technical, technological, etc. indicators of production capacities after reasons from the economic point of view.

2.3. The prices of goods (services) can be approved by differentiation on certain terms, and also consumer groups, including taxes, the state taxes and other obligatory payments provided by the specified price according to the legislation.

2.4. The documents submitted for the purpose of the state control are prepared based on existing rules and requirements separately for each goods (service) or number of goods (services), and also according to expenditure items.

2.5. In case of need Tariff council can make decisions on reduction of the expenses having significant effect on forming of regulated prices, prevention of increase in production (office) expenses at the expense of foreign factors and differentiation of the prices on temporary indicators.

2.6. By council relevant proposals on provision of privileges at the prices for separate customer groups, the companies and the organizations, investors, and also to establishment of limits and regulations can be made.

2.7. Accounting of profit (profitability) in the prices of goods (services) is performed according to the procedure and on the conditions provided below:

2.7.1. the profitability level provided in the prices shall create conditions for coordination of financial and economic activities of the subject, including for satisfaction of necessary requirements;

2.7.2. level or limit (taking into account cost) profitability rates on subjects or separate goods (services), made by them, can be predefined Council;

2.7.3. in case of determination of level of profitability of goods (services) the amount which will provide return to the subject of the investments enclosed at the expense of the credits on which the state guarantee is provided and after payment of these expenses shall be separately specified the relevant amendments in the amount of the specified amount shall be made;

2.7.4. in case of need the profitability rate level provided in the prices of goods (services) can be limited to Council;

2.7.5. the method of price regulation gets out and applied by Council, having assumed as a basis increase in effective price influence of goods (services) in subjects on social and economic development of the country, stimulation of the intensive investing in priority industries of economy and feature of industries;

2.7.6. the profit for increase in effective price influence of goods (services) in subjects on social and economic development of the country, stimulation of the intensive investing in priority industries of economy with reference to the international experience can be determined based on percent of investments and level of profitability rate;

2.7.7. the prices of goods (services) of subjects taking into account conditions of services, the demand and supply, market conditions, requirements of the competition, etc. are determined according to market prices, the method of price regulation gets out and applied by Council.

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