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Home / RLA / Article 4. The basic concepts used in this Law The Law on Natural Monopolies

Article 4. The basic concepts used in this Law The Law on Natural Monopolies

АMANAT партиясы және Заң және Құқық адвокаттық кеңсесінің серіктестігі аясында елге тегін заң көмегі көрсетілді

Article 4. The basic concepts used in this Law   The Law on Natural Monopolies

     The following basic concepts are used in this Law:

     1) The State Corporation "Government for Citizens" (hereinafter referred to as the State Corporation) is a legal entity established by decision of the Government of the Republic of Kazakhstan to provide public services in accordance with the legislation of the Republic of Kazakhstan, organize work on accepting applications for public services and issuing their results to the service recipient on the "one–stop shop" basis, and ensure the provision of public services. services in electronic form;

     2) misuse of depreciation charges - the allocation of funds provided for in the approved tariff and (or) approved tariff estimates, due to depreciation charges for purposes not related to investments in fixed assets used in the provision of regulated services and repayment of the principal debt on borrowed credit resources;

     3) controlled costs - the costs of a natural monopoly entity related to the provision of a regulated service, the amount of which depends on the activities of the natural monopoly entity;

     4) uncontrolled costs - the costs of a natural monopoly entity related to the provision of a regulated service, the amount of which does not depend on the activities of the natural monopoly entity;

     5) metering device - a technical device designed for commercial accounting of individual and (or) general household consumption of regulated services, authorized for use in accordance with the procedure determined by the legislation of the Republic of Kazakhstan;

     6) public hearings - a procedure for discussing the draft tariff, standards of consumption of utilities in the areas of natural monopolies for consumers who do not have metering devices, and conducting reports to consumers and other interested parties.;

     7) investment program - an action plan for the investment and return of funds allocated for the expansion, modernization, reconstruction, renovation, maintenance of existing assets and the creation of new assets of a natural monopoly entity in order to obtain technical, economic and (or) environmental effects expressed in achieving the targets of the investment program or maintaining the performance of the natural monopoly entity at the current level;

     8) the indexation method is the tariff formation by annual indexation of the approved tariff by a small-capacity natural monopoly entity;

     9) public monitoring is a mechanism for monitoring by public organizations and other stakeholders the progress of the approved investment program, compliance with quality and reliability indicators of regulated services and achievement of performance indicators of natural monopoly entities;

     10) low-capacity natural monopoly entity - a natural monopoly entity providing regulated services:

     Note from <url>!       The second paragraph of subparagraph 10) is provided for in the wording of the Law of the Republic of Kazakhstan dated 07/08/2024 No. 121-VIII (effective from 07/01/2025).  

    for the production, transmission, distribution and sale of thermal energy from heating boilers with a total installed capacity of up to twenty Gcal/hour inclusive, related to centralized or local heat supply systems;

     water supply and (or) sanitation with a volume of up to five hundred thousand cubic meters per year;

     water supply for irrigation of up to thirty million cubic meters per year;

     access roads with a volume of up to fifty thousand cars/ km, car/ hour per year in the absence of a competitive access road;

     for the transmission of electric energy in the amount of up to twenty-five million kWh per year;

     airports with less than three hundred thousand passengers served at the airport per year.

     A low-capacity natural monopoly entity also includes a natural monopoly entity for a regulated service, the income from which does not exceed 5 percent of the income from all regulated services of the natural monopoly entity for one calendar year. At the same time, for the remaining regulated services, the natural monopoly entity does not belong to the low-capacity natural monopoly entity.;

     11) price limits for regulated services of mainline railway networks - maximum and minimum tariff levels in the form of indexes to tariffs for regulated services of mainline railway networks;

     11-1) unjustified income – additional income received by the entity as a result of tariff excess, including improper accrual according to meter readings, volumes, amounts and standards of consumption of services approved by the department of the authorized body, and (or) misuse of depreciation funds provided for in the tariff estimates, non-fulfillment of cost items of the tariff estimates by more than five percent of the approved by the department of the authorized body of the amount, non-fulfillment or misuse of funds provided for in the tariff estimates for the implementation of investment programs;

     12) application - an application from a natural monopoly entity to the authorized body for approval of the tariff;

     13) regulated services - goods, works, and services provided by subjects of natural monopolies in the fields of natural monopolies and subject to state regulation by an authorized body;

     14) forecast tariff index - an indicator that determines the acceptable tariff level by calculating its forecast;

     15) indicators of the quality and reliability of regulated services - a set of criteria for evaluating regulated services, including technological and other objective parameters of the process of providing regulated services to consumers, including those subject to independent external evaluation;

     16) Strategic goods:

     coal, gas, fuel oil and diesel fuel used as fuel for the production of thermal energy by subjects of natural monopolies;

 electric energy, taking into account the service of ensuring the readiness of electric power to carry the load – for subjects of natural monopolies in the fields of electric energy transmission to compensate for losses, water supply and (or) sanitation, as well as the production, transmission, distribution and sale of thermal energy in centralized heat supply systems and local heat supply systems, with the exception of thermal energy generated using heat from soil, groundwater, rivers, reservoirs, waste water industrial enterprises and power plants, sewage treatment plants

     thermal energy - for subjects of natural monopolies in the field of heat energy sales and for regulatory losses in the field of heat energy transmission and distribution;

     gas - for own needs and losses for subjects of natural monopolies in the fields of storage, transportation of commercial gas through connecting, main gas pipelines and (or) gas distribution systems, operation of group tank installations, as well as transportation of crude gas through connecting gas pipelines;

     water - for subjects of natural monopolies in the fields of water supply and heat energy production;

     17) producers of strategic goods - individuals and legal entities:

     producing strategic goods;

     owners of raw materials for the production (processing) of strategic goods;

     directly on behalf of a foreign manufacturer that sells strategic goods on the territory of the Republic of Kazakhstan;

     18) natural monopoly - a state of the market of goods, works, and services in which the creation of competitive conditions to meet demand for a certain type of goods, works, and services is impossible or economically impractical due to the technological features of the production and provision of this type of goods, works, and services;

     19) communal services in the spheres of natural monopolies - regulated water supply and (or) sanitation services, sale of thermal energy for heating and (or) hot water supply provided by subjects of natural monopolies in buildings;

     20) performance indicators of natural monopoly entities - the ratio of the results of the activity of a natural monopoly entity and its economic, managerial, and production costs, taken into account when forming a tariff;

     21) natural monopoly entity - an individual entrepreneur or a legal entity providing regulated services to consumers;

     22) tariff is a monetary expression of the value of a regulated service;

     23) the method of tariff regulation of the sphere of natural monopoly is the method used in the formation of the tariff;

     24) the costly method of tariff regulation is a method of forming a tariff depending on the linearly determined, economically justified costs and profits of a natural monopoly entity.;

     25) incentive method of tariff regulation is a method of tariff formation depending on compliance with quality and reliability indicators of regulated services and achievement of performance indicators of natural monopoly entities;

     26) tariff estimate - a list of income, expenses and volumes of regulated services provided in a form approved by the authorized body;

     27) tariff differentiation - the establishment of different tariff levels depending on the conditions of consumption, including the consumer group;

     28) the straight-line depreciation method is a depreciation method according to which the annual amount of depreciation is determined by dividing the cost that is amortized by the useful life of an object of fixed assets and intangible assets;

29) consumer - a natural or legal person using or intending to use regulated services;

     30) temporary compensating tariff - a tariff approved by the authorized body for a certain period of time in order to refund funds to consumers;

     31) temporary reduction coefficient - a value approved by the authorized body and applied to the tariff in order to protect the interests of consumers and the natural monopoly entity;

     32) authorized body - a state body responsible for the management of the relevant areas of natural monopolies;

     32-1) information system of the authorized body – a system of tariff regulation in the field of natural monopolies and socially significant markets;

     33) the e-government web portal is an information system that provides a "single window" of access to all consolidated government information, including the regulatory framework, and to government services, services for issuing technical specifications for connection to the networks of a natural monopoly entity and services of quasi-public sector entities provided in electronic form.

 

 

President    

Republic of Kazakhstan     

© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan  

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