Article 17. Stimulating method of tariff regulation The Law on Natural Monopolies

Home / RLA / Article 17. Stimulating method of tariff regulation The Law on Natural Monopolies

1. The tariff using the incentive method of tariff regulation is approved by the authorized body for a period of five years or more, taking into account the quality and reliability of regulated services and performance indicators of natural monopoly entities.

2. The incentive method of tariff regulation provides for:

1) limitation of the types and amounts of costs included in the tariff, taking into account their economic validity;

2) the application of technical and technological standards for the consumption of raw materials, fuel, energy, if any, standard technical losses, and the standard number of personnel, determined on the basis of standard standards and regulations in force in the relevant industry (sphere).

The effect of this subparagraph is applied when approving the tariff in the event of a transition from the cost-based method of tariff regulation to the incentive method of tariff regulation.;

3) definition of controlled and uncontrolled costs;

4) approval of a temporary compensating tariff for non-fulfillment of the activities of the approved investment program and uncontrolled costs;

5) determination of profit, taking into account the return of invested capital and the rates of return on invested capital, as well as the book value of the assets of the natural monopoly entity involved in the provision of regulated services, and the profit rate calculated according to the method determined by the authorized body;

6) determination of indicators of quality and reliability of regulated services;

7) determination of performance indicators of natural monopoly entities;

8) application of the straight-line depreciation method;

9) approval of the investment program.

10) the introduction of innovations in the provision of regulated services aimed at the modernization (technical re-equipment) and expansion of existing production facilities, the creation and development of modern infrastructure in order to obtain a positive economic and technological effect.

3. Certain requirements of this Law, including the obligations of subjects of natural monopolies that are not applicable to the tariff calculation mechanism according to the incentive method of tariff regulation established in this Law and the rules for tariff formation, do not apply to subjects of natural monopolies that have approved a tariff according to the incentive method of tariff regulation.

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