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

of December 8, 2016 No. 5

About approval of the Technique of determination of cost for forming of rates for natural gas

According to article 8 of the Law of the Kyrgyz Republic "About regulatory legal acts of the Kyrgyz Republic", the order of the Government of the Kyrgyz Republic "About delegation of separate rule-making powers of the Government of the Kyrgyz Republic to number of state bodies of the executive authority" of September 15, 2014 No. 530 and for the purpose of ensuring sustainable development, stable and reliable functioning of electric power industry of the Kyrgyz Republic, and also increase in transparency of the procedure of calculations for establishment of rates for electrical energy, I order:

1. Approve the Technique of determination of cost for forming of rates for natural gas according to appendix.

2. To the press secretary to publish this order within three working days from the date of registration:

- in the Erkin Too newspaper;

- on the official website of the Government of the Kyrgyz Republic;

- on the website of the State agency on regulation of fuel and energy complex under the Government of the Kyrgyz Republic.

3. To department of legal support and international cooperation:

- within three working days from the date of official publication to send the copy of this order to the Ministry of Justice of the Kyrgyz Republic for state registration;

- within three working days from the date of entry into force to send to Government office of the Kyrgyz Republic for information.

4. This order becomes effective after 15 days from the date of official publication.

Appendix

to the Order of the State agency on regulation of fuel and energy complex under the Government of the Kyrgyz Republic of December 8, 2016 No. 5

Technique of determination of cost for forming of rates for natural gas

1. General provisions

1. This Technique of determination of cost for forming of rates for natural gas (further - the Technique) extends to the gas supplying companies which are engaged in transportation, distribution and realization of natural gas, regulation of rates (prices) of products (works, services) which is performed according to the decision of the Government of the Kyrgyz Republic (further - the companies of the gas industry).

2. Purposes and tasks of the Technique

2. Main objective of this Technique is ensuring balance of consumer interests and the companies of the gas industry.

The technique carries out the following tasks:

- reflection of actual economic cost of products in the course of transportation, distributions and realization of natural gas;

- assistance in provision of safe and reliable services of gas supply in acceptable and competitive rates;

- assistance in effective application of services of gas supply from consumers;

- attraction of the necessary capitals at reasonable price for upgrade and development of the gas industry;

- ensuring financial stability of the companies of the gas industry.

3. Overview of the Technique

3. This Technique determines procedure for forming by the state authorized body by fuel and energy complex regulation (further - the state authorized body on regulation of energy industry) rates for natural gas according to the laws of the Kyrgyz Republic "About power", "About oil and gas" and other regulatory legal acts governing the relations in the field of energy industry.

4. Technique stages:

1) the size of annual necessary earnings of the company of the gas industry which will be sufficient for covering of all costs Is calculated;

2) cost analysis and their classification Is made;

3) consumer groups Are created and distribution of the classified costs between consumer groups is made;

4) the structure of rate for each consumer group Gets out and the tariff charges are calculated.

4. Annual necessary earnings

See 4. Annual necessary earnings (59Kb In original language)

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