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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

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 July 5, 2004 No. 304-OD

About approval of the Instruction for calculation of rate arrived to regulated base of the involved assets of the subjects of natural monopoly rendering oil transportation services on bulk distribution lines

(as amended on on February 26, 2009)

According to the Law of the Republic of Kazakhstan "About natural monopolies and the controlled markets", I order:

1. Approve the enclosed Instruction for calculation of rate of profit on regulated base of the involved assets of the subjects of natural monopoly rendering oil transportation services on bulk distribution lines.

2. To department on regulation and control in the field of pipeline and water sewer systems of the Agency of the Republic of Kazakhstan on regulation of natural monopolies and protection of the competition (Aliyev I. Sh.) provide 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 and territorial work of the Agency of the Republic of Kazakhstan on regulation of natural monopolies and protection of the competition (Tokareva M. A.) after state registration of this order in the Ministry of Justice of the Republic of Kazakhstan:

To provide 1) in accordance with the established procedure its publication in official mass media;

2) to 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, KazTransOil joint-stock company and SZTK MunaiTas private company.

4. I reserve control of execution of this order.

5. This order becomes effective from the date of state registration in the Ministry of Justice of the Republic of Kazakhstan.

 

Acting Chairman

Zh. Ertlesova

It is approved:

Minister of Energy and

mineral resources

Republic of Kazakhstan

July 14, 2004

 

Approved by the order of the Acting Chairman of the Agency of the Republic of Kazakhstan on regulation of natural monopolies and protection of the competition against July 5, 2004 No. 304-OD About approval of the Instruction for calculation of rate of profit on regulated base of the involved assets of the subjects of natural monopoly rendering oil transportation services on bulk distribution lines

The instruction for calculation of rate arrived to regulated base of the involved assets of the subjects of natural monopoly rendering oil transportation services on bulk distribution lines

1. General provisions

1. The instruction for calculation of rate arrived to regulated base of the involved assets of the subjects of natural monopoly rendering oil transportation services on bulk distribution lines (further - the Instruction) is developed according to the Law of the Republic of Kazakhstan "About natural monopolies and the controlled markets" and other regulatory legal acts of the Republic of Kazakhstan.

2. The instruction disaggregates the mechanism of the calculation of the admissible profit level which is part of rates of the subjects of natural monopoly rendering oil transportation services on bulk distribution lines, and considered in case of their calculation and approval including for the average and long-term period.

3. The instruction is entered for the purpose of reasonable calculation and the possibility of profit earning providing effective functioning of the subjects of natural monopoly rendering oil transportation services on bulk distribution lines.

4. The profit rate on regulated base of the involved assets is determined by authorized body by consideration and approval of rates of the pipeline organization.

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

risk-free return rate - annual rate of profitability of 20-year bonds of the U.S. Treasury;

admissible profit level - the profit (net income after the taxation) which is part of rate which the pipeline organization has the right to receive for effective functioning and improvement of quality of provision of services on oil transportation on bulk distribution lines;

the loan capital - obligations of the pipeline organization for the obtained credits, except for the credits for replenishment of current assets, for date of application by the pipeline organization for approval of rate or for decision date about approval of rate at the initiative of authorized body;

competent authority - the state body performing regulation in industry of pipeline transport;

the pipeline organization - the subject of natural monopoly rendering oil transportation services on bulk distribution lines;

the accounting period - the financial year preceding date of application for establishment or change of rates for services of the pipeline organization;

regulated base of the involved assets - the total cost of non-current assets (fixed assets and intangible assets on residual cost) and the net working capital (calculated as difference between the current assets and the current obligations) by the end of the reporting period, used in case of provision of services on oil transportation on bulk distribution lines;

equity - the capital which is belonging to owners of the pipeline organization, and consisting of certain number of shares or shares, and also including accumulated retained earnings and the reserve capital which is in addition paid and in addition unpaid capital determined by balance sheet data of the pipeline organization by the end of the reporting period;

capital cost - the size characterizing return rate on loan and equity, reflecting the investment risks connected with implementation by the pipeline organization of activities for oil transportation on bulk distribution lines;

authorized body - the state body performing management in spheres of natural monopolies and in the controlled markets;

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

2. Calculation of rate arrived to regulated base of the involved assets

6. The profit rate on regulated base of the involved assets of the pipeline organization is determined as weighted average capital cost and calculated by formula:

Формула 1 к Приказу от 05.07.2004 года №304

where:

SPZA - rate arrived to the involved assets;

SK - equity, tenge;

SPSK - cost of equity;

ZK - the loan capital, tenge;

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