Article 26. The rights and obligations of a natural monopoly entity under the Law on Natural Monopolies

Home / RLA / Article 26. The rights and obligations of a natural monopoly entity under the Law on Natural Monopolies

1. A natural monopoly entity has the right to:

1) require consumers to comply with the technical requirements established by the natural monopoly entity in accordance with the legislation of the Republic of Kazakhstan;

2) reduce the tariff for all consumers during the tariff period;

3) independently manage the underutilized part of the costs provided for in the approved investment program, subject to the implementation of measures and in the approved tariff estimates resulting from cost savings due to the use of more efficient methods and technologies, the implementation of an action plan for energy conservation and energy efficiency improvement developed based on the results of an energy audit or express energy audit, the implementation of measures to reduce regulatory technical losses or a reduction in the volume of regulated services provided for the following reasons, independent of the natural monopoly entity, or the results of competitive (tender) procedures;

3-1) independently redistribute cost items in the approved tariff estimate in order to carry out urgent repairs to prevent emergencies or accidents with mandatory notification to the authorized body;

3-2) include in the tariff costs for the purchase, installation, verification and operation of household commercial metering devices, for services for the production, transmission, distribution and sale of thermal energy in accordance with subparagraph 8) of paragraph 23 of Article 15 of this Law, except in cases of acceptance and commissioning of construction facilities;

4) require consumers to have access to the metering device for taking readings and sealing them.;

5) apply to the authorized body with an application for amendments to the approved tariff estimate, as well as to the authorized and (or) other state body or local executive body with an application for amendments to the approved investment program;

6) simultaneously with the application for regulated services of mainline railway networks, provide a draft price limits for regulated services of mainline railway networks in accordance with the rules for the formation of tariffs;

7) independently reduce and raise the tariff for regulated services of mainline railway networks within the approved price limits for regulated services of mainline railway networks in accordance with the rules for tariff formation;

8) apply to the authorized body with an application for amendments to the approved price limits for regulated services of mainline railway networks in accordance with the rules for the formation of tariffs;

9) provide regulated services and carry out activities not related to regulated services in accordance with the requirements of the legislation of the Republic of Kazakhstan;

10) apply to the authorized body with an application for amendments and additions, the adoption of new or the cancellation of existing legal acts of the authorized body;

11) appeal, in accordance with the procedure established by the laws of the Republic of Kazakhstan, the actions (inaction) of the authorized body, as well as its officials, orders to eliminate violations of the legislation of the Republic of Kazakhstan on natural monopolies.;

12) have other rights established by the laws of the Republic of Kazakhstan.

2. A natural monopoly entity must:

1) apply to the authorized body with an application for inclusion in the State Register of Subjects of Natural Monopolies, for exclusion from it, for amendments and (or) additions to it;

2) apply to the authorized body with an application in accordance with this Law;

3) provide a regulated service at a rate approved in accordance with this Law;

4) provide consumers with access to a regulated service, with the exception of the cases provided for in paragraph 12 of Article 24 of this Law;

5) provide consumers with equal access to regulated services;

6) do not establish additional requirements that are not related to the regulated service provided;

7) ensure acceptance of payments from consumers for utilities provided to them in the areas of natural monopolies through their own cash desks and (or) second-tier banks and organizations engaged in certain types of banking operations, Internet resources or terminals, and, if necessary, through payment agents and (or) payment organizations;

7-1) to make charges for the rendered service to consumers according to meter readings or standards of consumption of services in accordance with the procedure established by the legislation of the Republic of Kazakhstan;

8) conclude individual contracts with consumers for each type of regulated services provided in accordance with standard contracts.;

8-1) conclude, in accordance with the standard agreement, contracts for the technological connection of electric installations with an installed capacity of up to 200 kW of business entities to the electric networks of energy transmission organizations in the capital, cities of republican and regional significance only in electronic form.;

9) develop and approve, in coordination with the authorized body or with the department of the authorized body and its territorial divisions, methods for keeping separate records of income, costs and assets involved for each type of regulated services of natural monopoly entities in accordance with the procedure for keeping separate records of income, costs and assets involved for each type of regulated services and in general for activities not related to regulated services;

10) keep separate records of income, costs and assets involved for each type of regulated services and for non-regulated services activities in general;

11) recalculate the cost of the regulated thermal energy sales service, taking into account the actual outdoor temperature directly to consumers, or if it is impossible to determine the location of the consumer by reducing the tariff when paying for the regulated thermal energy sales service;

12) provide information on the tariff, the quality of the regulated service, and the terms of provision of the regulated service at the request of consumers.;

13) report on the implementation of the approved tariff estimates, on the implementation of the approved investment program, on compliance with the quality and reliability indicators of regulated services and the achievement of performance indicators of natural monopoly entities;

14) inform consumers about the tariff and its changes within the time limits established by this Law;

15) execute the approved tariff estimate, with the exception of non-fulfillment of cost items of the approved tariff estimate by less than five percent of the amounts provided for in the approved tariff estimate and the cases provided for in subparagraph 4) paragraph 2 of Article 33 of this Law;

16) carry out the activities of the approved investment program, with the exception of the cases provided for in subparagraph 3) paragraph 2 of Article 33 of this Law;

17) annually, no later than May 1 of the year following the reporting period, submit to the authorized body reports on the execution of the approved tariff estimate, on the execution of the approved investment program in electronic form, to another state body or local executive body - a report on the execution of the approved investment program in electronic form;

18) to purchase goods, works, and services, the costs of which are taken into account when approving the tariff, in accordance with Article 23 of this Law;

18-1) ensure the transfer of information, information about purchases carried out in electronic procurement information systems, to the information system of the National Chamber of Entrepreneurs of the Republic of Kazakhstan in order to form a single access point to procurement information;

19) to provide, at the request of consumers, information contained in the approved tariff estimates and investment program;

20) when approving a tariff using the incentive method of tariff regulation, annually, no later than May 1 of the reporting period, submit to the authorized body, other state body or local executive body reports on the income and expenses actually achieved during the reporting year, compliance with quality and reliability indicators of regulated services, and achievement of performance indicators of natural monopoly entities;

21) post it quarterly on its Internet resource or, in case of its absence, submit it to the authorized body for posting on its Internet resource.:

information about the reserve, availability of free and available capacities, capacities, locations, and network capacity of the natural monopoly entity;

schemes for the placement of networks or other property used in the provision of regulated services, with the exception of information related to state secrets and other legally protected secrets in accordance with the laws of the Republic of Kazakhstan, and regulated services provided for in subparagraphs 10), 11), 12) and 13) of paragraph 1 of Article 5 of this Law;

information on the progress of the approved investment program (location of facilities, stage of execution with attached photos, videos, deadlines and cost of investment program activities), with the exception of information related to state secrets and other legally protected secrets in accordance with the laws of the Republic of Kazakhstan;

22) at the request of the authorized body, provide the necessary information on paper or in electronic form within the time limits established by the authorized body, which may not be less than five working days from the date of receipt by the natural monopoly entity of the relevant requirement.;

23) inform the authorized body about the tariff and its changes no later than thirty calendar days before its entry into force;

24) within the time limits established by paragraph 6 of Article 25 of this Law, post reports on the implementation of the approved tariff estimates, on the implementation of the approved investment program, on compliance with quality and reliability indicators of regulated services and the achievement of performance indicators of natural monopoly entities to consumers and other interested parties no later than five calendar days from the date of the report in the funds mass media and (or) on its Internet resource or the Internet resource of the authorized body, in accordance with the rules of tariff formation;

24-1) coordinate with the authorized body a trust management agreement for the transfer of main channels with diverting inter-farm and intra-farm channels for expansion, modernization, reconstruction and improvement of the technical condition owned by a natural monopoly entity;

24-2) coordinate with the authorized body a trust management agreement for property used in the technological cycle in the provision of regulated services owned by a natural monopoly entity;

24-3) coordinate loan agreements with the authorized body to attract loans from international financial organizations, specialized industry banks, the Development Bank of Kazakhstan and second-tier banks of the Republic of Kazakhstan;

25) annually post a report on the provision of public utilities in the areas of natural monopolies to consumers and other interested parties no later than five calendar days from the date of the report in a periodical, on its Internet resource or the Internet resource of the authorized body in accordance with the rules for the formation of tariffs;

26) not to transfer property owned by right of ownership or on any other legal basis, used in the technological cycle in the production and (or) provision of regulated services, to trust management, property lease (lease), including leasing, except for the cases provided for in paragraphs 1 and 2 of Article 13-1 of the Law of the Republic of Kazakhstan "On Electric Power Industry", paragraph 6-1 of Article 29 of the Law of the Republic of Kazakhstan "On Communications", and the regulated service provided for in subparagraph 13) of paragraph 1 of Article 5 of this Law, transfer to trust management of main channels with diverting inter-farm and intra-farm channels for expansion, modernization, reconstruction and improvement of the technical condition of the assets of the natural monopoly entity transferred to trust management.

In the case of transfer to trust management of main channels with diverting inter-farm and intra-farm channels, the trustee provides water supply services through the channels at a price not exceeding the tariff level approved by the authorized body for the regulated water supply service through the channels.;

27) not to assign the right of claim related to the regulated service provided, except for the assignment of the right of claim to a special financial company for project financing and securitization transactions, provided that this does not lead to an increase in the tariff;

28) to alienate property used in the technological cycle in the production and (or) provision of regulated services at auctions, except in cases of transfer of property to state ownership, as well as transfer of electric networks by natural monopoly entities providing regulated electric energy transmission services specified in paragraph 1 of Article 13-1 of the Law of the Republic of Kazakhstan "On Electric Power Industry".

In case of alienation of an access road, the regulated services of which belong to the sphere of natural monopoly, the owner of this access road is obliged to:

notify consumers who have concluded contracts for the provision of access road services in writing about the tender no later than thirty calendar days prior to the tender.;

to grant the pre-emptive right to purchase it to the current consumer over third parties in the case of the same conditions and the amount of the purchase provided in the tenders.

If there are two or more active consumers, the preferential right is granted to the consumer who has received a larger volume of regulated services over the past twelve months (thousand wagons/ km, wagons/hour), in case of the same conditions and the amount of purchase provided in the tenders.;

29) not to include in the tariff costs not related to the provision of regulated services;

30) purchase and install metering devices for consumers in accordance with subparagraph 8) of paragraph 23 of Article 15 of this Law, except in cases of acceptance and commissioning of construction facilities;

30-1) to acquire, install, verify and carry out routine operation of common household commercial heat metering devices for apartment buildings previously commissioned in accordance with subparagraph 8) of paragraph 23 of Article 15 of this Law, except in cases of acceptance and commissioning of construction facilities;

30-2) to take on its balance sheet a common household device for commercial metering of thermal energy of an apartment building free of charge after its commissioning;".

31) charge consumers a fee for the purchase and installation of a metering device in accordance with subparagraph 8) of paragraph 23 of Article 15 of this Law, except in cases of acceptance and commissioning of construction facilities;

32) provide access to the facilities of the approved investment program and provide information on the implementation of the approved investment program to persons authorized to conduct public monitoring and (or) technical expertise of the implementation of the approved investment program, compliance with quality and reliability indicators of regulated services, and achievement of performance indicators of natural monopoly entities;

33) do not charge a separate fee for the use of structures, devices and elements of the access road designed to move rolling stock from one track to another;

34) charge a fee for the provision of access road services in the absence of a competitive access road according to the actual length to the consumer (counterparty).

35) provide information about the consumer of utility services to the credit bureau.

Duties stipulated by the sub-paragraphs 13), 18), 21), 24) and 25) of the first part of this paragraph, do not apply to subjects of low-capacity natural monopolies and newly created subjects of natural monopolies.

President

Republic of Kazakhstan

Constitution Law Code Standard Decree Order Decision Resolution Lawyer Almaty Lawyer Legal service Legal advice Civil Criminal Administrative cases Disputes Defense Arbitration Law Company Kazakhstan Law Firm Court Cases