THE ORDER OF THE STATE AGENCY ON REGULATION OF FUEL AND ENERGY COMPLEX UNDER THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of November 1, 2016 No. 144

About approval of the Procedure for approval of investing programs of the licensed companies of energy complex of authorized state body on fuel and energy complex regulation

According to Regulations on the State agency on regulation of the fuel and energy complex under the Government of the Kyrgyz Republic approved by the order of the Government of the Kyrgyz Republic of November 14, 2014 No. 650 I order:

1. Approve the Procedure for approval of investing programs of the licensed companies of energy complex of authorized state body on regulation of fuel and energy complex according to appendix.

2. Under the Government of the Kyrgyz Republic to send to department of monitoring and complex analysis of the State agency on regulation of fuel and energy complex this order to JSC Elektricheskiye stantsii, JSC NES Kyrgyzstana, JSC Severelektro, JSC Vostokelektro, JSC Oshelektro, JSC Zhalalabatelektro on execution.

3. To the energy companies by provision of data strictly to adhere to the terms specified according to the procedure of approval of investing programs of the licensed companies of energy complex of authorized state body on fuel and energy complex regulation.

4. To the press secretary to publish this order on the official site of the State agency on regulation of fuel and energy complex under the Government of the Kyrgyz Republic for general acquaintance.

5. To impose control of execution of this order on the head of department of monitoring and the complex analysis of the State agency on regulation of fuel and energy complex under the Government of the Kyrgyz Republic A. A. Ishenaliyev.

Appendix

to the Order of the State agency on regulation of fuel and energy complex under the Government of the Kyrgyz Republic "About approval of the Procedure for approval of investing programs of the licensed companies of energy complex of authorized state body on fuel and energy complex regulation" of November 1, 2016 No. 144

Procedure for approval of investing programs of the licensed companies of energy complex of authorized state body on fuel and energy complex regulation

General provisions

1. The procedure for approval of investing programs of the licensed companies of energy complex of authorized state body on fuel and energy complex regulation (further - the Procedure) determines reconciliation procedure of the licensed companies of energy complex (further - licensees) with authorized state body by fuel and energy complex regulation (further - authorized body) investing programs and projects which investment costs, fully or partially shall be considered further during calculation of cost of services, as a part of current costs or base of assets of profit and depreciation of the licensee.

2. Within the Procedure for investments the costs directed to increase, enhancement and/or replacement of the useful and used assets necessary for implementation of licensed activity are included. The investing program represented by the licensee shall be directed to the solution of one or several main objectives given below:

1) maintenance required or increase in level of safety;

2) increase in production capacities;

3) improvement of quality of the electric power;

4) improvement of quality of the provided services;

5) reducing losses of the electric power or expenses of the electric power on own needs of the companies of the energy sector;

6) implementation of the technologies reducing costs and/or increasing efficiency in case of production, transportation and distribution of energy;

7) improvement of key performance indicators;

8) replacement of assets which operation is beyond useful service life;

9) environmental protections;

10) energy saving;

11) implementation of modern effective technologies in the field of management and accounting of the licensee;

12) fulfillment of requirements of regulatory legal acts;

13) holding the actions directed to increase in efficiency of licensed activities;

14) implementation of the approved state programs of development;

15) implementation of joint investment projects which subjects are several licensees.

The investing programs and projects submitted for approval authorized body

3. The authorized body the order for each licensee determines duration of the represented investing program, and also the periods of planned adjustment of the approved investing programs.

4. The licensee represents to authorized body the investing program consisting of 3 main Sections:

1) main directions of costs for capital repairs and limits of means of works of emergency recovery;

2) the investment projects performed within state programs of development of industry and programs which financing is performed directly from the government budget or on the state guarantees;

3) the projects aimed at the development and expansion of infrastructure of the licensee.

5. The investing programs represented by the licensee to authorized body shall include:

1) description of the purposes and main directions of investing program of the licensee;

2) temporary aspects of the provided investing program according to decisions of authorized body;

3) reasons for need of implementation of the provided investment costs on each of the main directions;

4) the schedule of implementation of investing program and the expected results on the main directions;

5) the description of the selected projects, reasons, investment costs and schedules of implementation on each of them;

6) the list of the projects with reasons for changes passing from last investing programs, in case of need;

7) the description of state programs of development within which there are investment projects included in the investing program submitted for approval;

8) the description of joint projects and share, the licensee representing the program;

9) sources and financing terms of investment costs and costs on separate projects in case of target financing.

6. Except information provided in Item 2.3 of the Procedure, the descriptions provided by the licensee to authorized body and reasons for investment projects and the main directions of investing program it is necessary:

To specify 1) what benefit and as it can be measured consists in, including and that what technical and economic indicators will change as a result of implementation of the project. In case of opportunity to specify what of the following quantitative indices or key performance indicators it is supposed to improve:

- energy development growth (in kWh. or in calories);

- growth of efficiency (as a percentage);

- emission reduction (in tons or as a percentage in relation to situation without project implementation);

- reducing accident rate (as a percentage or in number of cases per unit of time);

- reducing frequency and/or duration of disconnection of consumers from network (key performance indicators);

- reducing losses of the electric power (in kWh., percentage of entrance to network or the Section of network);

- reducing cases of violation of quality requirements of the delivered energy;

- other estimated quantitative indices;

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