RESOLUTION OF THE CABINET OF MINISTERS OF THE KYRGYZ REPUBLIC

of June 19, 2024 No. 320

About approval of the Procedure for determination of rates for services of centralized drinking water supply and water disposal

For the purpose of forming of effective system of tariff regulation on services of centralized water supply and water disposal, development of industry, according to article 21 of the Law of the Kyrgyz Republic "About drinking water", article 4-1 of the Law of the Kyrgyz Republic "About natural monopolies in the Kyrgyz Republic", articles 13, of the 17th constitutional Law of the Kyrgyz Republic "About the Cabinet of Ministers of the Kyrgyz Republic" the Cabinet of Ministers of the Kyrgyz Republic decides:

1. Approve the Procedure for determination of rates for services of centralized drinking water supply and water disposal according to appendix.

2. To the companies (organizations) providing services of centralized drinking water supply and water disposal to perform activities based on the rates approved with territorial subdivisions of antimonopoly authority of the Kyrgyz Republic and approved in accordance with the established procedure by representative bodies of local self-government.

3. To impose control of execution of this resolution on management of control of execution of decisions of the President and the Presidential Administration Cabinet of Ministers of the Kyrgyz Republic.

4. This resolution becomes effective after seven days from the date of official publication.

Appendix

to the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of June 19, 2024 No. 320

Procedure for determination of rates for services of centralized drinking water supply and water disposal

Chapter 1. General provisions

1. This Procedure for determination of rates for services of centralized drinking water supply and water disposal (further - the Procedure) is single methodical instruction for forming of rates for rendering services of centralized drinking water supply and the water disposal rendered by the companies (organizations) of water supply and water disposal.

The companies (organization) of water supply and water disposal rendering services of centralized drinking water supply and water disposal are subjects of natural monopolies and are subject to state regulation.

2. The main objectives of this Procedure are:

1) non-admission of unreasonable establishment and increase in rates for rendering services of centralized drinking water supply and water disposal;

2) stimulation of consumers to economical use of drinking water and application of resource-saving technologies;

3) cost recovery, the services of centralized water supply and water disposal connected with rendering.

Chapter 2. Basic concepts

3. In this Procedure the following concepts are used:

1) water supply - set of actions for production, disinfecting, transportation, distribution and realization of drinking water according to requirements of the Law of the Kyrgyz Republic "The technical regulation "About Safety of Drinking Water";

2) water disposal - set of the actions for acceptance, transportation and sewage treatment providing removal of sewage from the territory of households, the organizations and companies with method, safe for settlements, and meeting the water quality standards in case of its return to the environment;

3) cost of services of water and sewer economy - set of the costs of the company (organization) (planned or actual) in cash, necessary for acquisition and/or production of services for ensuring water supply and water disposal of consumers;

4) calculation - calculation of cost of unit of services of centralized drinking water supply and water disposal;

5) direct costs - the costs which are directly connected with process of rendering services of centralized drinking water supply and water disposal which can be carried directly on cost of service of centralized drinking water supply and service of water disposal;

6) indirect costs - costs which cannot be directly carried on cost of rendering services of centralized drinking water supply and water disposal and ensure production processes and functioning of the company (organization) in general (for example, expenses on compensation and assignments on social insurance auxiliary and administrative and management personnel, costs for energy, depreciation of the equipment, the rent, transportation costs, general running costs, etc.).

4. Indirect costs can be distributed (in proportion) by one of the listed criteria:

- direct material costs (amount of direct costs);

- labor input;

- in proportion to share of the income;

- the provided conditional coefficient.

5. The technique of distribution of indirect costs by the company (organization) is determined independently and applied both when pricing (rates), and in case of determination of actually developed indirect costs.

6. Other concepts and terms used in this Procedure are applied according to the legislation of the Kyrgyz Republic in the field of natural monopolies and water supply.

Chapter 3. The basic principles of determination of rates for rendering services of centralized drinking water supply and water disposal

7. Rates for rendering services of centralized drinking water supply and water disposal are determined from economically reasonable cost (the actual or planned costs) and the certain size of profit sufficient for maintenance of necessary level of the provided services to consumers and accomplishment of debt obligations by the credits and loans obtained from the international financial institutions, creation of reserve for investment of own means into upgrade, reconstruction and rehabilitation of fixed assets, rendering material and social privileges to staff of the water supplying companies (organizations) according to the collective agreement, but not below the actual rate of inflation for the previous calendar year according to data of National Statistical Committee of the Kyrgyz Republic.

Calculation of cost of water is made by division of costs for the extracted water, costs on disinfecting, costs on transportation, distribution and realization for amount of the realized water for certain period (month, quarter, year), and also division of transport costs, acceptance and disinfecting of sewage on amount of the drains accepted to cleaning of subscribers for certain period (month, quarter, year).

8. The representative body of local self-government has the right to differentiate the rate for the following 3 categories approved with territorial subdivision of state body in the field of anti-monopoly regulation:

1 category - physical persons (population), except individual entrepreneurs;

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