ORDER OF THE MINISTER OF ENERGY OF THE REPUBLIC OF KAZAKHSTAN

of May 22, 2020 No. 205

About approval of the Technique of determination of the profit margin considered in case of limiting approval of rates for electrical energy

According to subitem 70-9) of article 5 of the Law of the Republic of Kazakhstan "About power industry" PRIKAZYVAYU:

1. Approve the enclosed Technique of determination of the profit margin considered in case of limiting approval of rates for electrical energy, and also the fixed profit for balancing considered in case of limiting approval of rates for the balancing electric power (further - the Technique).

2. Recognize invalid:

1) the order of the Minister of Energy of the Republic of Kazakhstan of November 28, 2017 No. 413 "About approval of the Technique of determination of the fixed profit considered in case of limiting approval of rates for electrical energy, and also the fixed profit for balancing considered in case of limiting approval of rates for the balancing electric power" (it is registered in the Register of state registration of regulatory legal acts for No. 16096, it is published in Reference control bank of regulatory legal acts of the Republic on December 27, 2017);

2) the order of the Minister of Energy of the Republic of Kazakhstan of December 14, 2018 No. 508 "About modification of the order of the Minister of Energy of the Republic of Kazakhstan of November 28, 2017 No. 413 "About approval of the Technique of determination of the fixed profit considered in case of limiting approval of rates for electrical energy, and also the fixed profit for balancing considered in case of limiting approval of rates for the balancing electric power" (it is registered in the Register of state registration of regulatory legal acts for No. 17961, it is published in Reference control bank of regulatory legal acts of the Republic of Kazakhstan on December 20, 2018).

3. To provide to development department of power industry of the Department of Energy of the Republic of Kazakhstan in the procedure established by the legislation of the Republic of Kazakhstan:

1) state registration of this order in the Ministry of Justice of the Republic of Kazakhstan;

2) placement of this order on Internet resource of the Department of Energy of the Republic of Kazakhstan;

3) within ten working days after state registration of this order in the Ministry of Justice of the Republic of Kazakhstan submission to Department of legal service of the Department of Energy of the Republic of Kazakhstan of data on execution of the actions provided by subitems 1) and 2) of this Item.

4. To impose control of execution of this order on the supervising vice-Minister of Energy of the Republic of Kazakhstan.

5. This order becomes effective after ten calendar days after day of its first official publication.

At the same time, paragraph 1 of Chapter 2 of the Technique is valid from 2021.

Paragraph 2 of Chapter 2 of the Technique is effective till 2021.

Approved by the Order of the Minister of Energy of the Republic of Kazakhstan of May 22, 2020 No. 205

Technique of determination of the profit margin considered in case of limiting approval of rates for electrical energy, and also the fixed profit for balancing considered in case of limiting approval of rates for the balancing electric power

Chapter 1. General provisions

1. This Technique of determination of the profit margin considered in case of limiting approval of rates for electrical energy (further – the Technique) is developed according to subitem 70-9) of article 5 of the Law of the Republic of Kazakhstan "About power industry" (further – the Law) and determines the mechanism of determination of the profit margin considered in case of limiting approval of rates for electrical energy and also allowances for balancing.

2. The technique is applied for the purpose of reasonable calculation and possibility of accounting of level of profit margin, in case of limiting approval of rates for electrical energy, providing effective functioning of the power plants enabling development and the realization of electrical energy, and also the allowance for balancing.

At the same time, the power making organization directs at least 50 (fifty) percent from actually got profit on income method on the invested capital to upgrade, reconstruction, expansion and (or) updating of capital assets, including to covering of expenses on financing on the attracted loans which are not considered in production costs of electrical energy.

3. In this Technique the following basic concepts are used:

1) assets - fixed asset objects (buildings, constructions, machines and the equipment, the measuring and regulating devices and devices of computer facilities, vehicles, tools of production and economic stock and accessories; intraeconomic roads and other corresponding fixed asset objects of the power making organization), and also the intangible assets (software) involved in regulated activities and included in regulated base of assets;

2) residual cost of assets - all-in cost of assets, less cumulative depreciation;

3) all-in cost of assets - the fair value of assets determined by priority according to national and/or international standards of assessment and international accounting standards without adjustment on impairment;

4) cumulative depreciation is set of physical and functional wear;

5) income method on the invested capital (RAB regulation) (further - RAB regulation) - the method applied to determination of the profit margin considered in case of limiting approval of rates for electrical energy, allowing to stimulate investments into development of electric power industry and increase in effective management of costs.

RAB regulation is created and estimated for the beginning of the next period of regulation, and in the years ahead the period is adjusted by accounting of input of new assets and disposal of the operating assets;

6) the combined production (development) - process of coproduction of the electrical and heat energy received from selections or the counter-pressure of steam turbines of combined heat and power plants;

7) regulated base of assets - the cost of the fixed assets and intangible assets of the power making organization which are in operation, created with use of the invested capital, applied in regulated activities, used in case of determination of the income on regulated base of assets when forming regulated rates for settlement period of regulation using income method of the invested capital;

8) settlement period of regulation - the term for which limiting rates for electrical energy, equal within the regulation period are established to calendar year;

9) the regulation period - the term for which limiting rates for electrical energy, equal are established to seven years;

10) authorized body - the state body performing management in the field of power industry;

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info