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THE ORDER OF THE CHAIRMAN OF THE AGENCY OF THE REPUBLIC OF KAZAKHSTAN ON REGULATION OF NATURAL MONOPOLIES

of November 4, 2005 No. 308-OD

About approval of the Method of calculation of rates for services in water supply on bulk distribution lines and (or) channels

According to the subitem 4) of Item 1 of article 13 of the Law of the Republic of Kazakhstan "About natural monopolies" and the subitem 1) of Item 18 of the Regulations on the Agency of the Republic of Kazakhstan on regulation natural, No. approved by the order of the Government of the Republic of Kazakhstan of October 28, 2004 1109, I ORDER:

1. Approve the enclosed Method of calculation of rates for services in water supply on bulk distribution lines and (or) channels.

2. To department of administrative work and analysis of the Agency of the Republic of Kazakhstan on regulation of natural monopolies (Esirkepov E. O.) bring this order to the attention of structural divisions of the Agency of the Republic of Kazakhstan on regulation of natural monopolies and Managements of the Agency of the Republic of Kazakhstan on regulation of natural monopolies on areas, the cities of Astana, Almaty, local executive bodies of areas (the city of republican value, the capital), KazTransOil joint-stock company, the Republican state companies "Esil of Sou", "Channel of Kanysh Satpayev".

3. To impose control of execution of this order on the vice-chairman of the Agency of the Republic of Kazakhstan on regulation of natural monopolies Nefedov A. P.

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

 

Chairman B. Sagintayev

Approved by the order of the Chairman of the Agency of the Republic of Kazakhstan to poregulirovaniye of natural monopolies of November 4, 2005 No. 308-OD

Method of calculation of rates for services in water supply on bulk distribution lines and (or) channels

1. General provisions

2. The technique is directed to determination of the mechanism of calculation of rates for services in water supply on bulk distribution lines, and also ensuring transparency of forming of rates.

3. In the Technique the following basic concepts are used:

two-part rate - the rate (the price, rate of charge) consisting of two rates and established for the consumers located in different areas;

the bulk distribution line (channel) - the complex of hydraulic engineering constructions intended for water supply from water intake to distributors (to water supplies from the bulk distribution line (channel) to groups of water users);

straight-line rate - the rate (the price, rate of charge) consisting of one part and established for all consumers;

consumers - groups of the physical and (or) legal entities located in the territories of the certain areas (area) consuming water from systems of the bulk distribution line (channel) for the purpose of satisfaction of own needs and (or) commercial interests;

the tariff site - the site of the bulk distribution line as which borders affirms and is effective rate, single for all customer groups, for supply (delivery) of water;

authorized body - the central state body exercising control and regulation of activities in spheres of natural monopoly or regional (the cities of republican value, the capital) executive body within the established competence;

the service provider - the subject of natural monopoly rendering services in water supply in bulk distribution lines and (or) channels.

Other concepts and terms applied in this Technique are applied according to the legislation of the Republic of Kazakhstan.

2. The principles of forming of rate (the price, rate of charge) on services in water supply in bulk distribution lines and (or) channels

4. The basic principle of forming of rate (the price, rate of charge) on services in water supply in bulk distribution lines and (or) channels is:

1) compensation of economically reasonable costs connected with rendering service in water supply on bulk distribution lines and (or) channels;

2) possibility of profit earning, the subject of natural monopoly providing effective functioning.

5. Rates for services in water supply on bulk distribution lines and (or) channels can be odnostavochny and two-part.

6. The straight-line rate is established if services in water supply in bulk distribution lines and (or) channels are the service provider in the territory of one area.

7. The two-part rate is established if services in water supply in bulk distribution lines and (or) channels are the service provider in the territory of two and more areas. The two-part rate consists of the fixed and unstable parts.

8. The fixed part of two-part rate reflects monetary value of the costs included in rate (the price, rate of charge) regardless of water supply distance to consumers per unit of the rendered services.

9. Unstable part of two-part rate reflects monetary value of the costs included in rate depending on water supply distance to the consumers located in the territory of the specific area per unit of the rendered services.

3. Calculation of rate (the price, rate of charge) on services in water supply in bulk distribution lines and (or) channels

10. The straight-line rate is determined by formula:

Формула 1 к Приказу от 04.11.2005 №308-ОД

where

T - rate for 1 cubic meter, tenge;

Z - economically reasonable costs, tenge;

DUP - admissible profit level, tenge;

V - total amount of the rendered services in water supply, cubic meter.

11. Economically reasonable costs necessary for provision of services on water supply, are calculated according to requirements of the Special procedure. Calculation of the costs connected with fence preparation and water supply is performed taking into account amounts of normative technical losses.

12. Admissible profit level (net income) is determined as the work of rate arrived to the size of regulated base of the involved assets. The rate of profit and regulated base of the involved assets are determined according to the legislation of the Republic of Kazakhstan.

13. If there are several tariff sites of system of bulk distribution lines, the rate for supply (delivery) of water on each tariff site is determined by formula:

Формула 2 к Приказу от 04.11.2005 №308-ОД

where

Vi

i - number of the tariff site;

Ti - rate for supply (delivery) of water on i-mu to the tariff site;

Z - economically reasonable costs on i-mu to the tariff site;

DUPI - admissible profit level on i-mu to the tariff site;

Vi - amount of giving (delivery) of water on i-mu to the tariff site.

14. The cost of giving (delivery) of water on bulk distribution lines for the certain consumer is determined by formula:

Формула 3 к Приказу от 04.11.2005 №308-ОД

where

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