ORDER OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

of May 13, 2005 No. 455

About the Concept of development of tariff policy in spheres of natural monopolies

For the purpose of further enhancement of tariff policy in spheres of the Government of the Republic of Kazakhstan DECIDES: natural monopolies

1. Approve the enclosed Concept of development of tariff policy in spheres of natural monopolies.

2. Approve the enclosed Actions plan on implementation of the Concept of development of tariff policy in spheres of natural monopolies for 2005-2007 (further - the Actions plan).

3. To provide to agency of the Republic of Kazakhstan on regulation of natural monopolies in the Government of the Republic of Kazakhstan summary information on the course of implementation of the Actions plan annually following the results of half-year and year.

4. This resolution becomes effective from the date of signing.

Approved by the order of the Government of the Republic of Kazakhstan of May 13, 2005 No. 455

The concept of development of tariff policy in spheres of natural monopolies

Introduction

In the industries carried to spheres of natural monopolies the major resources necessary for production of goods and services in all industries of economy and life support of the population are made. Subjects of natural monopolies in many respects provide life activity of the population of the country, delivering gas, water, electro-and heat power and rendering transport services. The share of products of subjects of natural monopolies in cost of end products can reach 30-70% (in particular "transport" and "energy" components). Thus, the importance of subjects of natural monopolies, extent of their impact on society and on rates and proportions of economic development require enhancement of tariff policy towards use of the systems of pricing providing intensive development of subjects of natural monopolies on condition of observance of consumer interests of their products.

The price performance (rates) for services of subjects of natural monopolies is important factor of forming of internal economic environment, providing competitiveness of domestic production in the world market. Not only level of the income and accumulating in subjects of natural monopolies, but also in other industries depends on it that requires integrated approach to question of forming of rates, developments of optimum policy in the field of regulation of the sphere of natural monopoly. As rates of basic spheres of natural monopolies are animator of price level and inflation, along with planning of parameters of social, budget and cash and economic development it is required to create parameters of tariff price policy concerning the prices regulated by the state in spheres of natural monopolies.

In spheres of natural monopolies about 800 subjects of natural monopolies, including 162 subjects of natural monopolies - in the republican Section of the State register of subjects of natural monopolies perform activities.

Creation of conditions for development of all participants of the exclusive market (subjects of natural monopolies and consumers) corresponds to interests of the state, at the same time achievement of the parameters of welfare corresponding to the level of developed economy is pursued. Therefore the market mechanism of managing is supplemented with instruments of state regulation which ratios depend on nature of solvable economic tasks and social and economic condition of society.

With adoption in 1998 of the Law of the Republic of Kazakhstan "About natural monopolies" (and subsequent changes and amendments in it) and the relevant bylaws in the Republic of Kazakhstan the formation of the legislation on natural monopolies which became one of efficient regulators of economic life and basis of civilized forms of state regulation in market economy was generally completed. During the period from 2002 to 2004 it is successfully implemented No. 1126 the "Program of enhancement of tariff policy of subjects of natural monopolies for 2002-2004" accepted by the order of the Government of the Republic of Kazakhstan of October 15, 2002 (further - the Program). The program implementation allowed to create methodological base of establishment of "fair" rates for all spheres of natural monopolies.

At the same time, beyond the scope of the Program there were questions of influence of rates for certain sectors and economy in general, problems of the existing differentiation of rates and the cross subsidizing arising at the same time, problems of rebalancing of rates and implementation of separate accounting of the income, expenses and the involved assets are not fully solved.

This Concept is developed for the purpose of determination of strategic vision of the organization and methodological ensuring state policy of regulation in spheres of natural monopolies, developments and realization of complex of actions for development of tariff policy in spheres of natural monopolies taking into account the approved development of all industries of economy. Development of the main directions and mechanisms of regulation is based on the analysis of results of program implementation and determination of modern problems of state regulation.

1. The place and role of tariff regulation of spheres of natural monopolies in economic policy of the state

At the present stage of development of system of state regulation it is required to provide the conditions promoting development of the market relations and the competition in earlier exclusive sectors of economy to create the mechanisms providing recovery of potential and development of infrastructure industries, to promote expansion and development of real production sector, increase in competitiveness of domestic production, and also to provide social security of the population.

The economy of any state depending on extent of the state intervention in economic relations can be broken into two sectors conditionally: non-regulated and regulated. Need of influence of the state on economic relations is determined depending on extent of development of the market relations, institutes and mechanisms of market self-regulation and requirements of social policy of the state. The mechanisms of market self-regulation are less developed, the regulating role of the state is stronger and the more so responsibility of the state to subjects of the market is high.

In the conditions of monopoly extent of influence on the market relations of the service provider (goods, works) requires intervention of the state for ensuring balance of interests of this supplier and the consumer. Such balance can be provided with the methodology of pricing based on the cumulative analysis of interests of both parties: on the one hand for the service provider (goods, works) the covering of all economically reasonable costs and compensation of profit margin on the involved assets, on the other hand for each category shall be provided, the consumer reasonable price, at the level of solvent demand shall be established.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info