Article 23. Procurement by a natural monopoly entity of the Law on Natural Monopolies

Home / RLA / Article 23. Procurement by a natural monopoly entity of the Law on Natural Monopolies

1. This article and the rules for the conduct of activities by subjects of natural monopolies shall apply to purchases by subjects of natural monopolies, with the exception of:

1) public procurement;

2) purchases of natural monopoly entities, fifty or more percent of the voting shares (participation interests) of which are directly or indirectly owned by the national management holding;

3) purchases of electric and (or) thermal energy from an energy-producing organization using renewable energy sources, which are carried out in accordance with the legislation of the Republic of Kazakhstan in the field of support for the use of renewable energy sources;

4) purchases of balancing electricity, electric energy at centralized auctions, spot market in accordance with the legislation of the Republic of Kazakhstan on electric power industry;

5) procurement of small-capacity natural monopolies;

6) purchases of natural monopoly entities, the costs of which are not taken into account when approving the tariff.

7) procurement of services related to travel expenses.

2. Purchases of goods, works and services are carried out in electronic procurement information systems using one of the following methods:

1) the competition;

2) request for price offers;

3) from a single source;

IZPI's note! Subparagraph 4) is provided for in the wording of the Law of the Republic of Kazakhstan No. 149-VIII dated 12/30/2024 (effective six months after the date of its first official publication).

4) 4) on commodity exchanges as a buyer of an exchange-traded commodity.";

The second part should be worded as follows:

"The purchase of exchange-traded goods is carried out through commodity exchanges in accordance with the legislation of the Republic of Kazakhstan on commodity exchanges.

2-1. When conducting purchases by means of a tender for the purchase of similar goods, works and services, the natural monopoly entity divides the goods, works and services into parts (lots) at the place of their delivery (execution, provision) in the tender documentation.

2-2. Procurement of works and services, selection of projects and suppliers, conclusion of contracts, purchase of goods from Kazakhstani producers and conclusion of offset contracts within the framework of the implementation of the national project for the modernization of the energy and utility sectors are carried out on the electronic procurement platform of the national project for the modernization of the energy and utility sectors.

2-3. The specifics of legal relations and the procurement procedure related to the implementation of the national project for the modernization of the energy and utility sectors are determined by the housing legislation of the Republic of Kazakhstan, which are not subject to the legislation of the Republic of Kazakhstan on public procurement, and are valid until the end of the implementation of the national project for the modernization of the energy and utility sectors.

The principles of procurement of works and services within the framework of the national project for the modernization of the energy and utility sectors are established in accordance with Article 10-12 of the Law of the Republic of Kazakhstan "On Housing Relations"

3. Excluded by the Law of the Republic of Kazakhstan dated 11/15/2021 No. 72-VII (effective from 01.01.2022).

4. Purchases by the request for price proposals method are carried out for homogeneous goods, works, and services if the annual volumes of such homogeneous goods, works, and services in value terms do not exceed four thousand times the monthly calculation index established by the law on the republican budget for the relevant financial year. In this case, the price is the crucial condition.

5. Purchases from a single source are carried out in the following cases::

1) if purchases by means of a tender or request for price proposals are declared invalid;

2) purchase of goods, works, and services at prices and tariffs established by the legislation of the Republic of Kazakhstan;

3) the acquisition of goods, works, and services from a person who has exclusive rights in respect of the acquired goods, works, and services, or from a person who is a subject of a state or natural monopoly;

4) acquisition of goods, works, services due to force majeure circumstances, including localization and (or) elimination of consequences of emergency situations, for the elimination of accidents;

5) purchase of goods, works, and services related to representative expenses;

6) excluded by the Law of the Republic of Kazakhstan dated 07/01/2024 No. 107-VIII (effective sixty calendar days after the date of its first official publication).

7) acquisition of property (assets) sold at auctions:

bailiffs in accordance with the legislation of the Republic of Kazakhstan on enforcement proceedings and the status of bailiffs;

conducted in accordance with the legislation of the Republic of Kazakhstan on rehabilitation and bankruptcy;

conducted in accordance with the land legislation of the Republic of Kazakhstan;

during the privatization of state property;

8) excluded by the Law of the Republic of Kazakhstan dated 07/01/2024 No. 107-VIII (effective sixty calendar days after the date of its first official publication).

8-1) purchase of goods, works and services in order to eliminate accidents in networks and equipment involved in the provision of regulated services, if the annual volume of such goods, works and services in value terms does not exceed two thousand times the monthly calculation index established by the law on the republican budget for the relevant financial year.;

9) excluded by the Law of the Republic of Kazakhstan dated 07/01/2024 No. 107-VIII (effective sixty calendar days after the date of its first official publication).

10) when a customer who has purchased goods, works, or services needs to purchase goods, works, or services from the same supplier in order to unify, standardize, or ensure compatibility.

IZPI's note! Paragraph 6 is provided for in the wording of the Law of the Republic of Kazakhstan No. 149-VIII dated 12/30/2024 (effective six months after the date of its first official publication).

 6. A natural monopoly entity carries out purchases through electronic trading platforms in accordance with the legislation of the Republic of Kazakhstan on the regulation of trading activities.

7. In the part not regulated by this article, purchases are carried out in accordance with the rules of activity of subjects of natural monopolies.

8. A natural monopoly entity purchases strategic goods directly from producers of strategic goods, except in the following cases::

1) excluded by the Law of the Republic of Kazakhstan dated 04/19/2023 No. 223-VII (effective from 07/01/2023).

2) non-compliance of the natural monopoly entity with the conditions for participation in the wholesale electric energy market imposed on consumers;

3) excluded by the Law of the Republic of Kazakhstan dated 04/19/2023 No. 223-VII (effective from 07/01/2023).

4) purchases of gas from gas distribution organizations in accordance with the legislation of the Republic of Kazakhstan on gas and gas supply;

5) excluded by the Law of the Republic of Kazakhstan dated 04/19/2023 No. 223-VII (effective from 07/01/2023).

6) excluded by the Law of the Republic of Kazakhstan dated 04/19/2023 No. 223-VII (effective from 07/01/2023).

7) excluded by the Law of the Republic of Kazakhstan dated 04/19/2023 No. 223-VII (effective from 07/01/2023).

8) purchases of electric energy in accordance with the legislation of the Republic of Kazakhstan on electric power industry.

9. A person in respect of whom a court decision confirming the fact of non-fulfillment or improper fulfillment of his obligations to a natural monopoly entity has entered into force shall not be allowed to participate in procurement by the methods provided for in subparagraphs 1), 2) and 4) of the first paragraph of paragraph 2 of this article, within two years from the date of entry into force court decisions.

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