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LAW OF THE REPUBLIC OF TAJIKISTAN

of March 5, 2007 No. 235

About natural monopolies

(as amended on 18-03-2022)

Chapter 1. General provisions

Article 1. Purpose of this Law

This Law determines the legal basis of state policy concerning natural monopolies in the Republic of Tajikistan and is directed to achievement of the balance of consumer interests and subjects of natural monopoly providing availability of the goods (works, services) for consumers realized by them and effective functioning of subjects of natural monopoly.

Article 2. Coverage of this Law

This Law regulates on the relations arising on commodity market (works, services), connected with existence and activities of the subject of natural monopolies.

Provision of this Law extend to the actions (failure to act) of subjects of natural monopolies, their founders (participants) made outside the Republic of Tajikistan in cases when these actions (failure to act) contradict this Law and cause damage to consumers of goods (works, services) of natural monopolies of the Republic of Tajikistan. Operations of this Law do not extend to the individual entrepreneurs and legal entities performing the activities referred to the sphere of natural monopoly, connected only with construction and operation of the objects intended for own needs.

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.

Article 3. Legislation of the Republic of Tajikistan on natural monopolies

The legislation of the Republic of Tajikistan on natural monopolies is based on the Constitution of the Republic of Tajikistan and consists of this Law, other regulatory legal acts of the Republic of Tajikistan and the international legal acts recognized by Tajikistan.

Article 4. Basic concepts

In this Law the following basic concepts are used:

- natural monopoly - market situation of goods (works, services) in case of which creation of competitive conditions for satisfaction of demand for certain type of goods (works, services) is impossible or economically inexpedient owing to technology features of production (in connection with essential lowering of costs of production per unit of goods in process of increase in production volume);

- the subject of natural monopoly - the business entity (legal entity) occupied with production (realization) of goods, performance of works and (or) rendering services to consumers in the conditions of natural monopoly:

- general servicing - production of goods and representation of services (performance of works) by subjects of natural monopoly for all consumers in certain territory of the Republic of Tajikistan where subjects of natural monopoly perform the activities and is able to provide goods (works, services);

- the consumer of goods (works, services) of the subject of natural monopoly - physical or the legal entity acquiring goods (works, services) the subject of natural monopoly;

- rate, (price) - the monetary value of cost of goods (works, services) of the subject of natural monopoly approved in accordance with the established procedure (further rate);

- the tariff estimate - aggregated data about income and expense items of the subject is more natural the monopolies which are annually approved by authorized body;

- the temporary compensating rate - the rate established by authorized body with I aim compensations of damage to consumers caused by the subject of natural monopoly;

- technical expertize of the project of rates - the analysis of technical condition (technical characteristic) of the involved assets of the subject of natural monopoly and carrying out the necessary works providing maintenance of assets in working order, efficiency of engineering procedure including material and labor costs, production technologies according to the established regulations, and also the level of involvement and correctness of distribution of fixed assets by types of the provided regulated goods (works, services);

- financial project appraisal of rates - the analysis of financial and economic activities of the subject of natural monopoly for the purpose of assessment of execution of this Law and the made decisions of the authorized body regulating area of natural monopoly, income distribution, costs and the involved assets by each type of regulated goods (works, services), and also influences of the applied rates for financial performance of activities of the subject of natural monopoly, check (assessment) of execution of the tariff estimate and observance of accounting policy, execution of investing programs and (or) investment projects;

- temporary lowering coefficient - the size established by authorized body and applied to rate for the purpose of protection of consumer interests and the subject of natural monopoly;

- public discussions - the procedure of discussion of the project of rates or their limit on regulated goods (works, services) the subject of natural monopoly with the invitation of representatives of public authorities, consumers and their public associations, mass media and subjects of natural monopoly;

- authorized body - the state body exercising control and regulation of activities in spheres of natural monopolies.

The concepts "goods", "goods market", "business entity" and "group of persons" are applied in this Law in the values specified in article 2 of the Law of the Republic of Tajikistan "About protection of the competition".

Article 5. Field of activity of subjects of natural monopoly

This Law regulates activities of subjects of natural monopoly in the following spheres:

- services in production and oil transportation and oil products on bulk distribution lines;

- services in production and purchase and transfers of natural gas on the bulk and (or) distribution pipelines, operation of gas-distributing installations and the related gas-distributing gas pipelines;

- services in production, transfer and (or) distribution of electrical and (or) heat energy;

- services of rail hauling;

- services of transport terminals, airports and air navigation;

- services of electric and mail service, telecommunications with use of network of local lines;

- services of water management and (or) sewer systems;

- services of aviation transportation on local lines.

Subjects of natural monopolies are subject to inclusion in the Register of subjects natural monopolies, consisting of the republican and local Sections, with indication of specific types provided by this Law of regulated goods (works, services).

The procedure for inclusion and exception of the Register of subjects of natural monopolies, is established by the state body exercising the state control in spheres of natural monopolies.

Control of economically justified transition of subjects of spheres of natural monopolies from condition of natural monopoly in condition of the competitive market is not allowed.

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