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RESOLUTION OF THE CABINET OF MINISTERS OF THE REPUBLIC OF UZBEKISTAN

of May 26, 2005 No. 132

About enhancement of settlement between consumers of natural gas and the gas supplying organizations

(as amended on 19-01-2018)

For the purpose of enhancement of the mechanism of calculations for natural gas, decides strengthenings of responsibility of the gas supplying organizations and consumers for timely supply and payment of natural gas according to the signed agreements Cabinet of Ministers:

1. Approve Regulations on procedure for settlement between consumers of natural gas and the gas supplying organizations according to appendix No. 1 and enact it since June 1, 2005.

To NHK "Uzbekneftegaz", the Uzkommunkhizmat Agency in a month together with consumers of natural gas to bring contractual relations into accord with the specified Provision.

2. SAC of Uzbekenergo and SAC Uzkimesanoat in two-month time to approve the level of technological and emergency armor of gas supply approved with the Uzbek state inspectorate for control of use of oil products and gas for the jurisdictional enterprises included in appendix No. 5 to the resolution of the Cabinet of Ministers of February 5, 2004 in No. 57 "About further implementation of market mechanisms of realization of highly liquid types of products, raw materials and materials".

3. Exempt the organizations delivering natural gas from preliminary payment of the state fee according to the actions of debt for the delivered natural gas considered in economic courts and courts on civil cases with the subsequent collection of the state fee from party at fault.

4. Make changes and additions to some decisions of the Government of the Republic of Uzbekistan according to appendix No. 2.

5. To the Ministry of Justice of the Republic of Uzbekistan, the relevant ministries and departments to bring departmental regulations into accord with this resolution in a month.

6. To impose control over the implementation of this resolution on the First Deputy Prime Minister of the Republic of Uzbekistan Azimov R. S.

Prime Minister of the Republic of Uzbekistan

Shavkat Mirziyoyev

Appendix No. 1

to the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan of May 26, 2005 No. 132

Regulations on procedure for settlement between consumers of natural gas and the gas supplying organizations

I. General provisions

1. This Provision determines procedure for settlement between consumers of natural gas and the gas supplying organizations.

2. In this Provision the following terms and determinations are applied:

state-financed organization - the ministry, the state committee, department or the organization for which the budgetary appropriations which are the main source of financing of their activities connected with accomplishment of the tasks and functions assigned to them are provided in the government budget;

gas - natural gas, the oil (passing) gas extracted by the gas, oil-extracting or gas-oil-extracting organizations, made by the gas-processing organizations, transported by the gas transmission organizations and also the fuel gas produced by the oil processing organizations held for use in fuel quality or raw materials;

the settlement period - calendar month for which the scope of supply of gas shall be determined and is made settlement between the supplier and the consumer for delivered gas;

consumers - the companies, the organizations, organizations, physical persons which are engaged in business activity without formation of legal entity, using gas in fuel quality or raw materials and also the population;

the supplier - the owner of gas or the person authorized by it performing gas supply;

the gas supplying organization - the organization providing acceptance, distribution and supply of gas to consumers;

the gas transmission organization - the organization which performs acceptance, gas transportation and supply of gas to consumers;

emergency reservation - the smallest amount of gas which is necessary in case of partial or complete stop of activities of business entity, irrespective of pattern of ownership, for ensuring safety of the equipment and safety of life of people;

technological reservation - the gas amount necessary for regular completion of engineering procedure, production cycle.

3. Action of this provision does not extend to the relations between the gas-oil-extracting and gas-processing companies with the gas transmission organization in the sphere of supply of gas.

4. Suppliers of gas shall perform gas supply to the consumer in the parameters specified in the delivery agreement of gas. In case of insufficiency of resources and capacities for gas supply to all consumers, regulation of distribution of gas between consumers is performed according to decisions of the Cabinet of Ministers of the Republic of Uzbekistan.

5. When using gas because of the consumer in amounts, smaller against the amounts declared in the delivery agreement of gas return in the advance payment of the paid means is not performed, and the specified means are considered in case of subsequent its consumption.

6. In the presence at the consumer of overdue debt for gas the funds transferred by it on account of advance payment go for repayment of overdue debt and are not set off as advance payment.

7. Expenses on disconnection from gas networks of the consumers of gas having overdue debt, and their repeated connection become covered at the expense of consumers.

8. In case of untimely payment of cost of delivered gas in the terms stipulated in the agreement, the consumer pays to the supplier penalty fee according to the delivery agreement of gas. The population pays penalty fee in case of untimely payment for gas in the amount of % 0,1 for each day of delay, but no more than 50% of the amount of overdue payment.

The consumer is exempted from payment of penalty fee if non-execution of obligations was consequence of force majeur circumstances.

9. By supply of gas by the supplier below contractual amounts the supplier pays to the buyer penalty fee in the amount of 0,4 of % of the amount of unexecuted part of obligations for each day of delay, but no more than 50% of cost of the undersupplied gas.

The supplier is exempted from payment of penalty fee if non-execution of obligations was consequence of force majeur circumstances.

The supplier or the gas supplying organization indemnifies to the consumer in accordance with the established procedure the actual damage and lost profit caused owing to not supply or underdelivery of gas under the agreement.

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