Approved by the Order of the Ministry of Economic Development and Trade of the Republic of Tajikistan of May 28, 2007 No. 10

The instruction for determination, approval and maintaining rates and tariff estimates on goods (works, services) subjects of natural monopolies

According to requirements of article 14 of the Law of the Republic of Tajikistan "About natural monopolies" (further the Law) in compliance this instruction regulates, determines and establishes rates for goods (works, services) subjects of natural monopolies of the Ministry of Economic Development and Trade of the Republic of Tajikistan (further authorized body) in the following procedure:

1. Regulation of rates for the services rendered by subjects of natural monopolies (further services) is made on representation of subjects of natural monopolies (further the applicant), and also at the initiative of authorized body.

2. The authorized body during determination, establishments and approvals of rates for goods (works, services) estimates subjects of natural monopolies the basis of expenses in view of the following indicators:

- production expenses (sales) of goods (works and services) including:

- salary;

- cost of raw materials and products;

- additional services;

- taxes and other payments;

- the cost of fixed assets of production, demand for investments for reproduction and depreciation;

- the predicted profit;

- distance of different consumer groups of production site of goods;

- goods quality compliance (works and services) to consumer requirements.

3. During decision making about determination of rates the authorized body considers information of interested persons on activities of subjects of natural monopolies.

4. Review of rates requires availability of several essential factors:

- development and improvement of quality of services in this sphere;

- transition to regulation of rates for services in separate categories of consumers, a to also separate types of service;

- rates for services which do not cover cost for their rendering and do not provide development of services in this industry;

- the change of size of the costs attributable to cost of services, obligatory contributions and payments to the relevant budgets which happened in connection with acceptance corresponding legislative and regulatory legal acts

- inflationary tendencies and change of other factors influencing the price of goods and the used materials.

The authorized body has the right to consideration the offers of lack of the specified conditions provided by the applicant.

5. The applicant in case of the address with offers on change of rates for services represents to authorized body:

- reasons and basis for change of rates;

- projects of new rates;

- the reasons considering costs and need of subjects of this industry for the financial resources providing the volume of investment necessary for development of industry and satisfaction of demand of consumers, and also solvency of consumers;

- documents of accounting records (about the made costs and financial results, about movement of financial resources and means, as the credits, investments, etc.).

- documents of the economic reporting and planned calculations (about production costs, about cost, profitability, etc.).

6. Authorized body, receiving packet of the specified documents determined by Item 3 of this instruction within 30 working days considers the offers provided by the applicant, reasons, makes the decision and sends to the applicant the conclusion about change of rates for services.

7. If necessary, in exceptional cases, change of rates for the services rendered to the population on heat and electrical energy, natural gas and communication are submitted by authorized body for consideration in the Government of the Republic of Tajikistan. Terms of introduction of new rates shall provide timely informing consumers of services according to the legislation of the Republic of Tajikistan through mass media.

8. Control of application of rates is exercised by the relevant division of authorized body and its territorial authorities on places.

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