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The document ceased to be valid since  June 13, 2020 according to Item 2 of the Order of the Minister of national economy of the Republic of Kazakhstan of May 22, 2020 No. 42

THE ORDER OF THE CHAIRMAN OF THE AGENCY OF THE REPUBLIC OF KAZAKHSTAN ON REGULATION OF NATURAL MONOPOLIES AND PROTECTION OF THE COMPETITION

of January 27, 2003 No. 17-OD

About approval of the Instruction for calculation of rate of profit (net income) on regulated base of the involved assets for the subjects of natural monopoly rendering services of water supply and (or) water disposal and subjects of natural monopoly of the energy sector

(as amended on 24-07-2015)

According to the subitem 3) of Item 1 of article 13 of the Law of the Republic of Kazakhstan of July 9, 1998 "About natural monopolies and the controlled markets", Item 10 of Rules of forming and approval of rates (the prices, rates of charges) on regulated services (goods, works) of subjects of the natural monopolies performing the activities for the agreements of concession approved by the order of the Minister of national economy of the Republic of Kazakhstan of December 29, 2014 No. 177, registered in the Register of state registration of regulatory legal acts at No. 10561 and the subitem 120) of Item 17 of the Regulations on the Ministry of national economy of the Republic of Kazakhstan No. approved by the order of the Government of the Republic of Kazakhstan of September 24, 2014 1011, I ORDER:

1. Approve the enclosed Instruction for calculation of rate of profit (net income) on regulated base of the involved assets for the subjects of natural monopoly rendering services of water supply and (or) water disposal and subjects of natural monopoly of the energy sector.

2. On regulation of the energy sector of the Agency of the Republic of Kazakhstan on regulation of natural monopolies and protection of the competition (Grigoriev S. P.) to provide to department in the procedure established by the legislation state registration of this order in the Ministry of Justice of the Republic of Kazakhstan.

3. To department of administrative work of the Agency of the Republic of Kazakhstan on regulation of natural monopolies and protection of the competition (Shabdarbayev A. T.) after state registration of this order:

provide in accordance with the established procedure publication it in official mass media;

bring it 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.

4. To impose control of execution of this order on the First Deputy Chairman of the Agency of the Republic of Kazakhstan on regulation of natural monopolies and protection of the competition Sagintayev B. A.

5. This order becomes effective from the date of state registration.

Chairman

E.A.Dosayev

Approved by the Order of the Chairman of the Agency of the Republic of Kazakhstan on regulation of natural monopolies and protection of the competition against January 27, 2003 No. 17-OD

The instruction for calculation of rate of profit (net income) on regulated base of the involved assets for the subjects of natural monopoly rendering services of water supply and (or) water disposal and subjects of natural monopoly of the energy sector

This Instruction for calculation of rate of profit (net income) on regulated base of the involved assets (further - the Instruction) is developed for the subjects of natural monopoly rendering services of water supply and (or) water disposal and subjects of natural monopoly of the energy sector for the purpose of creation of conditions for ensuring effective functioning of the subjects of natural monopoly rendering services of water supply and (or) water disposal and subjects of natural monopoly of the energy sector.

1. General provisions

1. The instruction is developed according to the Laws of the Republic of Kazakhstan "About natural monopolies and the controlled markets", "About power industry".

2. The instruction disaggregates calculation of the admissible profit level (net income) which is part of rates (the prices, rates of charge) of the subjects of natural monopoly rendering services of water supply and (or) the water disposal and subjects of natural monopoly of the energy sector including performing the activities for agreements of concession, and considered during the calculating and approval of rates (the prices, rates of charge) or their limits.

3. The instruction is entered for the purpose of reasonable calculation and the possibility of profit earning (net income) providing effective functioning of the subjects of natural monopoly rendering services (goods, works) of water supply and (or) water disposals and subjects of natural monopolies of the energy sector (further - the Subject).

At the same time financing sources of investments are own and (or) borrowed funds - profit (net income) and the depreciation charges.

4. This Instruction is applied when forming rates (the prices, rates of charge) or their limits, on services (goods, works) of Subjects which are included in the State register of subjects of natural monopoly.

5. In this Instruction the following basic concepts are used:

1) coefficient of involvement of assets - the indicator in percentage expression characterizing the actual use (involvement) of fixed assets of the Subject in case of production and provision of services (goods, works) referred to the sphere of natural monopoly from their technology capacity;

2) capital cost - the size characterizing remuneration rate on borrowed and own funds, reflecting the investment risks connected with implementation of the activities referred to the sphere of natural monopoly;

3) equity - the capital which is belonging to participants or the Subject's shareholders, and consisting of certain number of shares or shares, giving to participants or the Subject's shareholders the right to certain income, and also including accumulated retained earnings and the reserve capital which is in addition paid and in addition unpaid capital;

4) admissible profit level (net income) - the profit (net income after the taxation) which is part of rate (the price, rate of charge) which the Subject has the right to receive for effective functioning and improvement of quality of implementable services (works, goods) for consumers and subject to approval (approval) of authorized body by department;

5) limit of rate (the price, rate of charge) - the maximum size of rate (the price, rate of charge) on regulated service (goods, work) of the subject of natural monopoly approved for the long-term period, if necessary with breakdown by years;

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