I.O.'S ORDER OF THE CHAIRMAN OF THE AGENCY OF THE REPUBLIC OF KAZAKHSTAN ON REGULATION OF NATURAL MONOPOLIES

of March 19, 2005 No. 91-OD

About approval of Rules of increase or reduction of tariffs (the prices, rates of charges) or their limits on the provided regulated services (goods, works)

According to subitems 1-1) and 5-1) of article 6 of the Law of the Republic of Kazakhstan of July 9, 1998 "About natural monopolies" PRIKAZYVAYU:

1. Approve the enclosed Rules of increase or reduction of tariffs (the prices, rates of charges) or their limits on the provided regulated services (goods, works).

2. To legal department of the Agency of the Republic of Kazakhstan on regulation of natural monopolies (Dzholdybayeva G. T.) provide in the procedure established by the legislation state registration of this order in the Ministry of Justice of the Republic of Kazakhstan.

3. To department of administrative work and analysis of the Agency of the Republic of Kazakhstan on regulation of natural monopolies (Dosmagambet E. M.) after state registration of this order in the Ministry of Justice of the Republic of Kazakhstan:

To provide 1) in the procedure established by the legislation its publication in official mass media;

2) to bring it to the attention of structural divisions and territorial authorities of the Agency of the Republic of Kazakhstan on regulation of natural monopolies.

4. Declare invalid the order of the Chairman of the Agency of the Republic of Kazakhstan on regulation of natural monopolies and protection of the competition against February 20, 2003 No. 46-OD "About approval of Rules of reduction of tariffs (the prices, rates of charges) for the provided services (goods, works) for all consumers of subjects of natural monopoly, during action of rates (the prices, rates of charges)" (No. registered in the Register of state registration of regulatory legal acts 2215, No. published in "Official newspaper" of May 17, 2003 20).

5. I reserve control of execution of this order.

6. This order becomes effective from the date of its state registration in the Ministry of Justice of the Republic of Kazakhstan.

Approved by the Order of the Acting Chairman of the Agency of the Republic of Kazakhstan on regulation of natural monopolies of March 19, 2005 No. 91-OD

Rules of increase or reduction of tariffs (the prices, rates of charges) or their limits on the provided regulated services (goods, works)

Chapter 1. General provisions

1. These rules of increase or reduction of tariffs (the prices, rates of charges) or their limits on the provided regulated services (goods, works) are developed according to the Law of the Republic of Kazakhstan "About natural monopolies" and establish procedure for increase in rates (the prices, rates of charges) or their limits on the provided regulated services (goods, works) for all consumers in case of corresponding change of the tax legislation of the Republic of Kazakhstan as a result of which the cost of costs of the subject of natural monopoly or reduction of tariffs (the prices, rates of charges) or their limits increases by the provided regulated services (goods, works) for all consumers.

2. The concepts and terms applied in these rules are used according to the current legislation of the Republic of Kazakhstan.

Chapter 2. Procedure for increase or reduction of tariffs (the prices, rates of charges) or their limits on the provided services (goods, works) for all consumers

3. The size of the raised or reduced rate (the price, rate of charge) or its limit on the provided regulated services (goods, works) cannot be lower than the cost of the costs necessary for provision of services (goods, works) and considers possibility of profit earning, providing effective functioning of subjects of natural monopolies (further – the subject):

1) increase in rate (the price, rate of charge) or its limit on the provided regulated services (goods, works) for all consumers is performed in case of corresponding change of the tax legislation of the Republic of Kazakhstan;

2) decrease in rate (the price, rate of charge) or its limit on the provided regulated services (goods, works) is performed in the following cases:

growths in volumes of the rendered regulated services (goods, works);

reducings actual costs of the subject;

receipt of the considerable income from other types of activity performed by subjects according to the legislation of the Republic of Kazakhstan on natural monopolies;

corresponding change of the tax legislation of the Republic of Kazakhstan.

In case of decrease in costly part of the tariff estimate at the expense of investing program, the subject of natural monopoly can adjust investing program after decrease in level of rate or its limit.

4. Increase or reduction of tariffs (the prices, rates of charges) or their limits on the provided regulated services (goods, works) does not form the basis for:

1) failures to carry out of investing programs and (or) investment project;

2) declines in quality, and also restrictions of number of the provided regulated services (goods, works);

3) infringement of the rights of consumers.

5. The solution of subject on increase or reduction of tariffs (the prices, rates of charges) or their limits on the provided regulated services (goods, works) affirms the order of the first head of the subject or person replacing it.

6. The subject not later than 25 calendar days before introduction of increase or 10 calendar days before introduction of reduction of tariffs (the prices, rates of charges) or their limits on the provided regulated services (goods, works) sends to authorized body the decision on increase or decrease in rate (the price, rate of charge) or its limit on the provided regulated services (goods, works).

At the same time, together with the decision on increase in rate (the price, rate of charge) or its limit on the provided regulated services (goods) the Subject employs in authorized body calculations and the proving documents confirming possibility of increase in rate (the price, rate of charge) or its limit on the provided regulated services (goods, works), and in case of decrease in rate (the price, rate of charge) or its limit the Subject directs calculations of decrease in rate (the price, rate of charge) or its limit to the provided regulated services (goods, works).

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