ORDER OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

of September 18, 2008 No. 864

About approval of Rules of forming of rates (the prices, rates of charges) or their limits on regulated services (goods, works) of subjects of the natural monopolies performing the activities for agreements of concession

According to Item 2-1 of article 15-1 of the Law of the Republic of Kazakhstan of July 9, 1998 "About natural monopolies and the controlled markets" the Government of the Republic of Kazakhstan DECIDES:

1. Approve the enclosed Rules of forming of rates (the prices, rates of charges) or their limits on regulated services (goods, works) of subjects of the natural monopolies performing the activities for agreements of concession.

2. This resolution becomes effective from the date of the first official publication.

Approved by the order of the Government of the Republic of Kazakhstan of September 18, 2008 No. 864

Rules of forming of rates (the prices, rates of charges) or their limits on regulated services (goods, works) of subjects of the natural monopolies performing the activities for agreements of concession

1. General provisions

1. These rules of forming of rates (the prices, rates of charges) or their limits (further - rate) on regulated services (goods, works) of subjects of the natural monopolies performing the activities for agreements of concession (further - Rules), are developed according to the Law of the Republic of Kazakhstan of July 9, 1998 "About natural monopolies and the controlled markets" for the purpose of non-admission of unreasonable growth of rates for regulated services (goods, works) of subjects of the natural monopolies performing the activities for agreements of concession (further - the subject of concession).

2. In Rules the following concepts are used:

1) costly part of rate - set of the costs connected with rendering services (works) by the subject of concession which are considered in case of approval of rate and tariff estimates. These costs consist of cost of regulated service (goods, work) and period expenses (total and administrative expenses, selling expenses, expenses on payment of remunerations);

2) the regulated services (goods, works) of the subject of kontsessiiusluga (goods, works) provided by the subject of concession in the sphere of natural monopoly and which are subject to state regulation by authorized body including cases of provision of services (goods, works) in the form of transfer of certain goods to the consumer;

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

3. Rules are applied to the subjects of concession providing regulated services (goods, works) and performing the activities for agreements of concession.

4. During the payback period of the project of concession determined by the agreement of concession, rates for regulated services (goods, works) of the subject of concession are created taking into account return of invested funds.

Thus after the termination of payback period of the project of concession determined by the agreement of concession, rates for regulated services (goods, works) of the Subject of concession are created without return of invested funds.

5. Forming of rates is performed based on separate accounting of the income, costs and the involved assets by each type of regulated services and in general on other activities.

When forming rates for regulated services (goods, works) costs taking into account requirements of these rules join. Forming of cost items is performed according to the legislation on financial accounting and the financial reporting.

Accounting policy is accepted by the Subject of concession after its coordination with authorized body.

2. Procedure for forming of rates for regulated services (goods, works) of the subject of concession to which the existing objects of state-owned property are put into operation

6. Regulation of the costs included in rate of the subject of concession is performed by restriction of the cost types included in costly part of rate, and restriction of the expense level of the subject of concession.

7. The material expenses included in costly part are determined proceeding from technical and technological consumption rates of raw materials, materials, fuel, energy (further - material resources) on release of unit of production (services, goods, works) and (or) annual regulations of material resources, and the prices of the material resources determined by results of tender (competitive) purchases according to the procedure, established by the legislation of the Republic of Kazakhstan.

8. The subsidy allocated to the subject of concession from means of the government budget is considered in reduction of costly part of rate, except for the subsidies directed to the expenses which are not considered in costly part of rate.

9. Expenses on the auditor, consulting, marketing services and repair work which is carried out by contract method, other services of production nature performed by third parties, acquired according to the procedure, established by the legislation of the Republic of Kazakhstan, join in costly part of rate.

10. The expenses connected with the normative technical losses approved by authorized body join in costly part of rate. In costly part of rate the cost of above-standard losses in the amount of percent 0,8 from service sales amount in the presence of the investing program (project) approved by authorized body together with authorized state body of the corresponding industry in case the subject of concession, provides services is considered:

on transfer and (or) distribution of electrical energy on networks of regional and (or) local levels;

on transfer and (or) distribution of heat energy;

on transportation of natural gas through distribution pipelines;

water management system.

11. The funds allocated by the subject of concession for the current and capital repairs and other rescue and recovery operations which are not leading to growth of cost of fixed assets join in costly part of rate proceeding from the annual cost budget approved with authorized body.

12. The expenses on compensation of production personnel included in costs are determined proceeding from the actual number, but not exceeding normative number of personnel of the subject of concession, and the average monthly salary accepted in the operating rates taking into account the predicted change of the consumer price index provided by the Mid-term plan of social and economic development of the Republic of Kazakhstan.

The expenses on compensation of administrative personnel included in costs are determined proceeding from the actual number, but not exceeding normative number of personnel of the subject of concession.

The normative number of the personnel specified in this Item of Rules affirms authorized body as the procedure established by it.

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