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The document ceased to be valid since January 15, 2019 according to article 36 of the Law of the Republic of Kazakhstan of December 27, 2018 No. 204-VI ZRK

LAW OF THE REPUBLIC OF KAZAKHSTAN

of July 9, 1998 No. 272-I

About natural monopolies

(as amended on 05-10-2018)

This Law regulates activities in spheres of natural monopolies, and also is aimed at providing protection of consumer interests, subjects of natural monopolies.

Article 1. Purposes of this Law

The purposes of this Law are:

1) determination of the legal basis of state regulation and control of activities in spheres of natural monopolies;

2) achievement of balance of consumer interests and subjects of natural monopoly;

3) application of procedures of regulation of activities of subjects of the natural monopolies providing succession, openness, objectivity, transparency and independence of the made decisions;

4) ensuring compliance of the approved rates to service quality in spheres of natural monopolies to which regulation extends.

Article 1-1. Legislation of the Republic of Kazakhstan on natural monopolies

1. The legislation of the Republic of Kazakhstan on natural monopolies is based on the Constitution of the Republic of Kazakhstan and consists of this Law and other regulatory legal acts of the Republic of Kazakhstan.

2. If the international treaty ratified by the Republic of Kazakhstan establishes other rules, than those which contain in this Law then are applied rules of the international treaty.

Article 2. Operation of this Law

1. This Law extends to the relations arising in the market of services (goods, works), connected with existence and activities of subjects of natural monopolies.

2. Provisions of this Law extend also to the actions (failure to act) of subjects of natural monopolies, their founders (participants) made outside the Republic of Kazakhstan in cases when these actions (failure to act) contradict this Law and cause damage to consumers of services (goods, works) of natural monopolies.

3. Operation of this Law does not extend to the individual entrepreneurs and legal entities performing the activities referred to the sphere of natural monopolies in one of the following cases when:

1) activities are connected with construction and operation of the objects intended only for own needs;

2) the activities provided by the subitem 2) of Item 1 of article 4 of this Law with observance in total of the following conditions are performed:

income from such activities shall not exceed one percent of the income from all activities in one calendar year;

preserving level of the rate for the services referred to the sphere of natural monopoly, operating for January 1, 2012.

3-1. To the subject of the market performing activities which are referred by this Law to the sphere of natural monopoly state regulation and control are applied only to such activities.

3-2. No. 376-V ZRK is excluded according to the Law of the Republic of Kazakhstan of 29.10.2015.

3-3. For subjects of the natural monopolies realizing investing programs (projects) with attraction of borrowed funds of the international financial institutions and entering the list of subjects of natural monopolies approved by authorized body, provisions of this Law are applied only in the part which is not settled by the Special procedure for regulation of activities of subjects of the natural monopolies participating in attraction of loans of international financial institutions.

4. The legal relationship which are not covered by this Law are regulated by the legislation of the Republic of Kazakhstan in the field of protection of the competition and other legislation of the Republic of Kazakhstan.

5. Operation of this Law does not extend to activities of the state-owned Islamic special finance companies.

Article 3. The basic concepts used in this Law

In this Law the following basic concepts are used:

1) The Government for Citizens State corporation (further - the State corporation) - the legal entity created according to the decision of the Government of the Republic of Kazakhstan for rendering the state services, services in issue of specifications on connection to networks of subjects of natural monopolies and services of subjects of the quasi-public sector according to the legislation of the Republic of Kazakhstan, the organization of work on reception of applications on rendering the state services, services in issue of specifications on the connection to networks of subjects of natural monopolies, services of subjects of the quasi-public sector and issue of their results to uslugopoluchatel by the principle of "one window", and also ensuring rendering the state services electronically performing state registration of the rights to real estate in the place of its stay;

1-1) No. 376-V ZRK is excluded according to the Law of the Republic of Kazakhstan of 29.10.2015;

1-2) inappropriate use of means of the depreciation charges - the direction of the means provided in the approved rates (the prices, rates of charges) and (or) tariff estimates due to the depreciation charges on the purposes which are not connected with capital investments in the fixed assets used in provision of regulated services (goods, works) and return of principal debt on the attracted credit resources;

2) general servicing - provision of services (goods, works) by subjects of natural monopolies for all consumers in certain territory of the Republic of Kazakhstan where subjects of natural monopolies perform the activities and is able to provide services (goods, works);

3) public hearings - the procedure of discussion of the project of rate (the price, rate of charge) or its limit on regulated services (goods, works) of the subject of natural monopoly with the invitation of deputies of Parliament of the Republic of Kazakhstan, maslikhats, representatives of local government bodies, state bodies, consumers and their public associations, independent experts, mass media and subjects of natural monopolies;

4) investing program - the program of attachment and return of the funds aimed at providing energy saving and increase in energy efficiency, expansion, recovery, updating, support of the existing assets, reconstruction, modernization of fixed assets, creation of new assets of the subject of natural monopoly, for the short-term, medium-term or long-term periods for the purpose of receipt of technical and economic effect, including one or several investment projects;

5) the investment project - the complex of actions providing investments into creation new, expansion and updating of the operating productions;

6) investment rate (the price, rate of charge) - the rate (the price, rate of charge) approved by authorized body within one investment project or its limit on regulated services (goods, works) of the subject of natural monopoly rendered on newly created objects operating to complete payback of the enclosed investments;

7)  No. 312-V ZRK is excluded according to the Law of the Republic of Kazakhstan of 05.05.2015

8) the subject of natural monopoly of low power - the subject of natural monopoly enabling rendering of services:

on production, transfer, distribution and (or) supply with heat energy from heating boiler rooms with general installed capacity to twenty Gcal/hour inclusive;

water supply and (or) water disposal in amount to five hundred thousand cubic meters a year;

on water supply for irrigation in amount to thirty million cubic meters a year;

the airports servicing passengers in number of less than three hundred thousand people a year;

in the field of sidings in amount to fifty thousand the car/km, car/hour;

on transfer of electrical energy in amount to twenty five million kW. hour a year.

The subject of natural monopoly on regulated service, the income from which does not exceed five percent of the income from all regulated services of the subject of natural monopoly in one calendar year, also concerns the subject of natural monopoly of low power. At the same time on the remained regulated services the subject of natural monopoly does not concern the subject of natural monopoly of low power;

9) the short-term period - time frame up to one year inclusive;

10) the medium-term period - time frame more than one year up to four years inclusive;

11)  No. 376-V ZRK is excluded according to the Law of the Republic of Kazakhstan of 29.10.2015

12) the subject of the controlled market - the individual entrepreneur or the legal entity (except for subjects of natural, state monopoly and the power making organizations) included in the State register of the subjects of the market holding the dominating or monopoly position in the controlled markets;

12-1)  No. 312-V ZRK is excluded according to the Law of the Republic of Kazakhstan of 05.05.2015

12-2) differential tariff - the rate for regulated services of the subject of natural monopoly approved by authorized body differentially on customer groups and (or) amounts of consumption;

12-3) advisory council - the body created for the purpose of carrying out the analysis and examination of projects of rates (the prices, rates of charges) and tariff estimates of subjects of natural monopolies which part independent experts are;

13) strategic goods - the coal, gas, fuel oil, diesel fuel used in fuel quality for production of heat energy by subjects of natural monopolies, electrical energy - for subjects of natural monopolies in spheres of transfer of electrical energy, water supply and (or) water disposal, heat energy - for subjects of natural monopolies in the field of heat supply and for normative losses in the field of transfer and (or) distribution of heat energy, gas - for own needs and losses for subjects of natural monopolies in the field of gas transportation or gas condensate on the bulk and (or) distribution pipelines, purchased water - for subjects of natural monopolies in spheres of water supply, production of heat energy;

14) producers of strategic goods - physical persons and legal entities:

the making strategic goods;

being owners of raw materials for production (conversion) of strategic goods;

directly on behalf of the foreign producer the implementing strategic goods in the territory of the Republic of Kazakhstan;

15) natural monopoly - market situation of services (goods, works) in case of which creation of competitive conditions for satisfaction of demand for certain type of service (goods, works) is impossible or economically inexpedient owing to technology features of production and provision of this type of service (goods, works);

16) the sphere of natural monopoly - area of the public relations arising in the markets of services (goods, works) in which the individual entrepreneur or the legal entity can be recognized as the subject of natural monopoly;

17) the subject of natural monopoly - the individual entrepreneur or the legal entity occupied with production of goods, performance of works and (or) the consumer service delivery in the conditions of natural monopoly;

18) affiliirovanny face of the subject of natural monopoly - person (except for the state bodies performing regulation of its activities within the conferred powers) who has opportunity directly and (or) indirectly to determine decisions and (or) to exert impact on the decisions made by the subject of natural monopoly, including owing to the agreement, including the verbal agreement, or other transaction, and also any person concerning whom the subject of natural monopoly has such right;

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