On the ratification of the Agreement on Common Principles and Rules for Regulating the Activities of Natural Monopolies

Home / RLA / On the ratification of the Agreement on Common Principles and Rules for Regulating the Activities of Natural Monopolies

Law of the Republic of Kazakhstan dated July 2, 2011 No. 451-IV

RCPI's note! The Agreement is terminated in connection with the entry into force of the Treaty on the Eurasian Economic Union, ratified by the Law of the Republic of Kazakhstan dated 14.10.2014 No. 240-V (for the procedure of entry into force, see Article 113).

To ratify the Agreement on Common Principles and Rules for Regulating the Activities of Natural Monopolies, signed in Moscow on December 9, 2010.

President of the Republic of Kazakhstan N. Nazarbayev

AGREEMENT on Common Principles and Rules governing the Activities of Natural Monopoly Entities

(Entered into force on January 1, 2012) - Bulletin of International Treaties of the Republic of Kazakhstan 2012, No. 1, art. 9

The Governments of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation, hereinafter referred to as the Parties, based on the Agreement on the Customs Union between the Russian Federation and the Republic of Belarus of January 6, 1995, the Agreement on the Customs Union of January 20, 1995, the Agreement on the Customs Union and the Single Economic Space of February 26, 1999, the Agreement on the Establishment of of the Eurasian Economic Community dated October 10, 2000, the Agreement on the Establishment of a Single Customs Territory and the Formation of the Customs Union dated October 6, 2007, In an effort to implement a coordinated policy of regulating the activities of natural monopoly entities based on common principles and rules, we have agreed on the following:

Section 1 General provisions

Article 1 Purpose of the Agreement

The purpose of this Agreement is to create a legal framework for the formation and establishment of uniform principles and general rules for regulating the activities of natural monopoly entities of the States of the Parties to ensure a balance of interests of consumers, natural monopoly entities and society, ensuring the availability of services provided by natural monopoly entities, the effectiveness of the functioning and development of natural monopoly entities in the States of the Parties., and the harmonization on their basis of the national legislation of the Parties in the field of regulating the activities of natural monopolies.

Article 2 Definition of terms used in the Agreement

For the purposes of this Agreement, the following basic concepts are used: "internal market" is the market of the state of the Party in which the services of subjects of natural monopolies are traded; "natural monopoly" is the state of the service market in which the creation of competitive conditions to meet the demand for a certain type of services is impossible or economically impractical due to the technological features of the production and provision of this type of services; "consumer" - a subject of civil law (an individual or a legal entity) using or intending to use services provided by natural monopoly entities; "natural monopoly entity" - an economic entity providing services in the areas of natural monopolies established by the national legislation of the Parties; "provision of services" - provision (provision) of services, production (sale) goods that are the object of civil turnover; "business entity" - a legal entity or an individual carrying out business activities on its own behalf; "sphere of natural monopolies" - the sphere of circulation of services legally classified as a natural monopoly, in which the consumer can purchase the services of subjects of natural monopolies; "national legislation of the Parties" - the legislation of each of the states of the Parties concerning the spheres of natural monopolies; "national authorities of the Parties" - the authorities of the state of the Party that regulate and (or) control the activities of subjects of natural monopolies; "sectoral (sectoral) agreements" - international agreements of the States of the Parties, including bilateral international agreements of the Parties concerning the areas of natural monopolies specified in Annex 1 to this Agreement; "access to services of subjects of natural monopolies" is the provision by subjects of natural monopolies of the state of one Party of services related to the sphere of natural monopolies to consumers of the state of the other Party on terms no less favorable than those on which a similar service is provided to consumers of the first state of the Party, if technically possible.

Article 3 Scope of the Agreement

1. This Agreement applies to relations involving subjects of natural monopolies, consumers, executive authorities and local self-government bodies of the States of the Parties in the areas of natural monopolies affecting trade between the States of the Parties and specified in Annex 1 to this Agreement. 2. The specifics of the application of this Agreement in specific areas of natural monopolies, including the stages of the formation of a Single Economic Space in relation to subjects of natural monopolies, are determined in the relevant sectoral agreements. 3. The spheres of natural monopolies in the States of the Parties also include the spheres of natural monopolies specified in Appendix 2 to this Agreement. The requirements of the national legislation of the Parties shall apply to the areas of natural monopolies specified in Annex 2 to this Agreement. 4. The list of services of subjects of natural monopolies related to the spheres of natural monopolies is established by the national legislation of the Parties. 5. The Parties shall strive to harmonize the areas of natural monopolies specified in Annexes 1 and 2 to this Agreement by reducing them and possibly defining a transition period in sectoral agreements. 6. The expansion of the spheres of natural monopolies in the States of the Parties is carried out: - in accordance with the national legislation of the Parties, if the State of the Party intends to assign to the sphere of natural monopolies a sphere that is the sphere of natural monopoly in the State of the other Party and is listed in Annexes 1 or 2 to this Agreement; - by decision of the Commission of the Customs Union, if the State of the Party intends to assign to the sphere of natural monopolies another sphere of natural monopolies not specified in Annexes 1 and 2 to this Agreement, after the relevant application of the State of the Party to the Commission of the Customs Union. 7. This Agreement does not apply to the relations regulated by the existing bilateral international agreements of the Parties. The newly concluded sectoral agreements of the Parties may not contradict this Agreement. 8. The Agreement of the Parties on common principles and rules of competition applies to subjects of natural monopolies, taking into account the specifics provided for in this Agreement. 9. The sphere of gas transportation is regulated by the agreement on the rules of access to services of natural monopolies in the field of gas transportation through gas transmission systems, including the basics of pricing and tariff policy.

Section 2 Regulation of the activities of natural monopolies

Article 4 General principles of regulation of the activities of subjects of natural monopolies

The principles that guide the Parties in regulating and (or) controlling the activities of natural monopoly entities in the areas of natural monopolies specified in Annexes 1 and 2 to this Agreement are: 1) maintaining a balance between the interests of consumers and subjects of natural monopolies of the states of the Parties, ensuring the availability of services provided and an appropriate level of quality for consumers, the effective functioning and development of subjects of natural monopolies; 2) increasing the effectiveness of regulation aimed at reducing the areas of natural monopolies in the future by creating conditions for the development of competition in these areas; 3) the application of flexible tariff (price) regulation of natural monopoly entities, taking into account industry specifics, the scale of their activities, market conditions, medium-term (long-term) macroeconomic and industry forecasts, as well as measures of tariff (price) regulation of these entities, including the possibility of establishing a differentiated tariff, which cannot be established on the principle of the affiliation of the consumer (consumer groups) to the state of either Party; 4) the introduction of regulation in cases where, based on the analysis of the relevant domestic market, it is established that this market is in a state of natural monopoly; 5) reducing barriers to access to domestic markets, including by providing access to the services of natural monopolies; 6) the application of procedures for regulating the activities of natural monopolies, ensuring the independence of decisions continuity, openness, objectivity and transparency; 7) the obligation for subjects of natural monopolies to conclude contracts with consumers for the provision of services subject to regulation, if technically possible, determined in accordance with the national legislation of the Parties; 8) ensuring compliance by subjects of natural monopolies with the rules of access to services of subjects of natural monopolies; 9) the focus of regulation on a specific subject of natural monopoly; 10) ensuring compliance of established tariffs (prices) with the quality of services in the areas of natural monopolies subject to regulation; 11) protecting the interests of consumers, including from various violations by subjects of natural monopolies related to the application of tariffs (prices) for regulated services; 12) creating economic conditions under which subjects of natural monopolies benefit reduce costs, introduce new technologies, and increase the efficiency of using investments.

Article 5 Types and methods of regulating the activities of subjects of natural monopolies

1. The States of the Parties shall apply the types (forms, methods, methods, instruments) of regulation of the activities of subjects of natural monopolies of the States of the Parties on the basis of the general principles and rules of regulation of natural monopolies established by this Agreement. 2. When regulating the activities of natural monopoly entities, the following types (forms, methods, methods, tools) of regulation are used: 1) tariff (price) regulation; 2) types of regulation established by this Agreement; 3) other types of regulation established by the national legislation of the Parties. 3. Tariff (price) regulation of the services of subjects of natural monopolies, including setting the cost of connection (connection) to the services of subjects of natural monopolies, can be carried out by: 1) establishment (approval) by the national authority of tariffs (prices) for regulated services for subjects of natural monopolies, including their maximum levels based on the methodology (formula) approved by the national authority and the rules for its application, as well as appropriate control by the national authority over the application of established tariffs (prices) by subjects of natural monopolies; 2) establishment (approval) by the national authority of the methodology and rules of its application, in accordance with which the subject of a natural monopoly sets and applies tariffs (prices), as well as control by the national authority over the establishment and application of tariffs (prices) by subjects of natural monopolies. 4. When implementing tariff (price) regulation, the national authorities of the Parties have the right to apply, among other things, the following methods of tariff (price) regulation or a combination thereof in accordance with the national legislation of the Parties: 1) Economically reasonable cost method; 2) the indexation method; 3) the method of return on investment capital; 4) the method of comparative analysis of the effectiveness of natural monopoly entities. 5. When regulating tariffs (prices), the following factors are taken into account: 1) reimbursement to subjects of natural monopolies of economically justified costs associated with the implementation of regulated activities; 2) obtaining economically justified profits; 3) stimulating subjects of natural monopolies to reduce costs; 4) the formation of tariffs (prices) for the services of subjects of natural monopolies, taking into account the reliability and quality of the services provided. 6. When setting tariffs (prices), the following factors may be taken into account:: 1) the specifics of the functioning of natural monopolies in the territories of the States of the Parties, including the specifics of technical requirements and regulations; 2) government subsidies and other government support measures; 3) market conditions, including price levels in unregulated market segments; 4) territorial development plans; 5) state tax, budgetary, environmental and social policies; 6) energy efficiency measures and environmental aspects. 7. When regulating tariffs (prices) for services of a natural monopoly entity, it is envisaged that when forming the costs of a natural monopoly entity, separate accounting of expenses, including investments, as well as income, assets involved, by types of regulated services of natural monopoly entities is carried out. 8. Regulation of tariffs (prices) for services of a natural monopoly entity can be carried out on the basis of long-term regulatory parameters, which may include, among other things, the level of reliability and quality of regulated services, the dynamics of changes in costs associated with the supply of relevant services, the rate of return, the timing of the return of invested capital and other parameters. For the purposes of regulating tariffs (prices) for services of a natural monopoly entity, long-term regulatory parameters obtained using the method of comparative analysis of the effectiveness of natural monopoly entities can also be applied. 9. The specifics of the application of the provisions of this article in specific areas of natural monopolies may be determined in relevant sectoral agreements. In sectoral (sectoral) agreements, the Parties have the right to establish a list of services of subjects of natural monopolies and (or) a list of subjects of natural monopolies, in respect of which special procedures may be applied for the Parties to agree on methods (approaches, techniques) for the formation and application of tariffs (prices).

Article 6 Rules for ensuring access to services of subjects of natural monopolies

1. The Parties undertake to establish in their national legislation the rules of regulation ensuring access to the services of subjects of natural monopolies, as defined in Article 2 of this Agreement. The national authorities of each of the Parties ensure control over compliance with the rules for ensuring consumer access to the services of natural monopolies and the conditions of connection (connection /use) to them. 2. The rules for ensuring consumer access to the services of natural monopoly entities include: 1) the essential terms of contracts, as well as the procedure for their conclusion and execution; 2) the procedure for determining the availability of technical capabilities; 3) the procedure for providing information on services provided by subjects of natural monopolies, their cost, access to them, possible sales volumes, technical and technological possibilities for the provision of such services; 4) conditions for obtaining open information that allows interested parties to compare the terms of use of services of natural monopoly entities and (or) access to them; 5) a list of information that cannot constitute a commercial secret; 6) the procedure for reviewing complaints, applications and dispute resolution on access to services of natural monopoly entities. 3. The specifics of the application of the provisions of this article in specific areas of natural monopolies, including transit issues, are defined in the relevant sectoral agreements. 4. It is allowed for subjects of natural monopolies of the States of the Parties to apply differentiated conditions of access to their services to consumers of the States of the Parties (taking into account the specifics of each individual sphere of natural monopoly, defined in sectoral (sectoral) agreements), if such conditions are not applied according to the principle of consumers belonging to the state of either Party, subject to compliance with the national legislation of each Party. 5. Without prejudice to the provisions of paragraph 4 of this Article, the national legislation of the Parties should not contain norms establishing differentiated conditions for access to services of natural monopoly entities in relation to consumers of the States of the Parties, based on the affiliation of consumers to the State of either Party.

Article 7 National authorities

1. The national authorities of the Parties shall function in the States of the Parties with the authority to regulate and (or) control the activities of natural monopoly entities in accordance with the national legislation of the Parties. 2. The national authorities of the Parties shall carry out their activities in accordance with the national legislation of the Parties based on the common principles and rules defined by this Agreement, sectoral agreements of the Parties and other international treaties of the States of the Parties. 3. The functions of national authorities include: 1) tariff (price) regulation of services of subjects of natural monopolies; 2) regulation of access to services of subjects of natural monopolies, including the establishment of fees (prices, tariffs, fees) for connection (connection) to services of subjects of natural monopolies, in cases provided for by the national legislation of the Parties; 3) protection of the interests of consumers of services of subjects of natural monopolies monopolies; 4) consideration of complaints, applications, settlement of disputes concerning the establishment and application of regulated tariffs (prices), as well as access to services of subjects of natural monopolies; 5) consideration, approval or coordination of investment programs of subjects of natural monopolies and control over their implementation; 6) ensuring compliance by subjects of natural monopolies with restrictions provided for by the national legislation of the Parties regarding the classification of information as a trade secret; 7) exercising control over the activities of natural monopoly entities, including through inspections and other forms (monitoring, analysis, expertise); 8) other functions provided for by the national legislation of the Parties.

Article 8 Implementation of the Agreement

1. The implementation of this Agreement is the responsibility of national authorities. 2. The Parties shall inform each other and the Customs Union Commission of the designation and full name of their national authorities no later than 30 days from the date of entry into force of this Agreement. 3. In order to gradually form a Single Economic Space, the Customs Union Commission performs the following functions:: 1) prepares proposals for a step-by-step plan for the formation of a Single Economic Space (in the sectoral (sectoral) context) in relation to the spheres of natural monopolies, including making proposals on the criteria and procedure for monitoring the implementation of a step-by-step plan for the formation of a Single Economic Space; 2) analyzes and suggests ways to coordinate (develop and implement) decisions of national authorities related to the areas of natural monopolies; 3) conducts a comparative analysis of the system and practice of regulating the activities of natural monopolies in the States of the Parties with the preparation of relevant annual reports and reports; 4) promotes the harmonization of regulation in the areas of natural monopolies in relation to environmental aspects, energy efficiency 5) performs other functions stipulated by sectoral agreements. 4. The results of the work specified in this Article of the Agreement, the Commission of the Customs Union, in coordination with the national authorities of the Parties, submits for consideration the Interstate Council of the EurAsEC (the Highest body of the Customs Union). 5. In order to harmonize the national legislation of the Parties in the field of regulating the activities of natural monopoly entities, the Interstate Council of the Eurasian Economic Community (the Supreme Body of the Customs Union), on the recommendation of the Customs Union Commission, establishes regulatory legal acts of the Parties in this area, which are subject to convergence, and determines the sequence of appropriate measures to harmonize legislation in this area. 6. The Customs Union Commission is empowered to the authority to monitor the implementation of this Agreement.

Section 3 Final provisions

Article 9 Dispute resolution

Disputes related to the application or interpretation of the provisions of this Agreement shall be resolved through consultations and negotiations between the Parties, including with the participation of the Customs Union Commission, and if no agreement is reached within six months from the beginning of such consultations or negotiations, any of the interested Parties shall be referred to the Court of the Eurasian Economic Community. The Party that has applied to the Court of the Eurasian Economic Community must notify the other interested Parties no later than 30 days from the date of the application.

Article 10 Making changes to the Agreement

By agreement of the Parties, amendments may be made to this Agreement, which are formalized by the protocol.

Article 11 Application of the Agreement to third countries

Nothing in this Agreement should be interpreted as obliging any of the Parties to the Agreement to extend the rules and/or benefits arising from this Agreement to third States that are not parties to this Agreement, or business entities of such third States.

Article 12 Procedure for entry into force of the Agreement

This Agreement shall enter into force on the date of receipt by the depositary of the last of the written notifications of the Parties on their completion of the internal procedures necessary for its entry into force.

Done in Moscow on December 9, 2010, in one original copy in the Russian language. The original copy of this Agreement is kept in the Integration Committee of the Eurasian Economic Community, which is its depositary. Copies of the original copy are certified by the Integration Committee of the Eurasian Economic Community and sent to each Party.

For For For Government Government Government of the Republic of the Republic Russian Belarus Kazakhstan Federations

Appendix 1 to the Agreement on Common Principles and Rules for Regulating the Activities of Subjects natural monopolies

Areas of natural monopolies in the States of the Parties

Republic of Belarus

Republic of Kazakhstan

Russian Federation

transportation of oil and petroleum products via main oil pipelines

oil transportation and/or petroleum products via main oil pipelines

transportation of oil and petroleum products via main oil pipelines

transmission and distribution of electrical energy

electric energy transmission and (or) distribution services

electric energy transmission services

technical dispatching services for supply to the grid and electric energy consumption;

electric energy production and consumption balancing service

operational dispatch management services in the electric power industry

services provided by railway transport communications that ensure the movement of public transport, train traffic management, railway transportation

mainline railway network services

railway transportation

Appendix 2 to the Agreement on Common Principles and Rules for Regulating the Activities of Subjects natural monopolies

Areas of natural monopolies in the States of the Parties

Republic of Belarus

Republic of Kazakhstan

Russian Federation

transportation of gas through main and distribution pipelines

gas or gas condensate storage and transportation services via main and (or) distribution pipelines, operation of gas distribution installations and related gas distribution pipelines

transportation of gas through pipelines

services of transport terminals and airports;

maintenance and operation of air routes, air traffic control

air navigation services;

port and airport services

services in transport terminals, ports and airports

public electric and postal services

telecommunications services provided that there is no competitive telecom operator due to the technological impossibility or economic inexpediency of providing these types of services, with the exception of universal telecommunications services;

services for the provision of property rent (lease) or use of cable sewerage and other fixed assets technologically related to the connection of telecommunications networks to the public telecommunications network;

public postal services

public telecommunication and public postal services;

transmission and distribution of thermal energy;

production, transmission, distribution and/or supply of thermal energy;

thermal energy transmission services;

centralized water supply and sanitation;

water management and (or) sewage systems;

services for the use of inland waterway infrastructure;

railway track services with railway transport facilities under concession agreements;

access road services.

I hereby certify that this text is a complete and authentic copy of the original Agreement on Common Principles and Rules for Regulating the Activities of Natural Monopoly Entities, signed on December 9, 2010 in Moscow: on behalf of the Republic of Belarus - Deputy Prime Minister of the Republic of Belarus A.V. Kobyakov, on behalf of the Government of the Republic of Kazakhstan - First Deputy Prime Minister of the Republic of Kazakhstan U.E. Shukeyev, on behalf of the Government of the Russian Federation - First Deputy Chairman of the Government of the Russian Federation I.I. Shuvalov. The original copy is kept in the Integration Committee of the Eurasian Economic Community.

A total of 17 sheets are laced, signed and stamped.

Head of the Legal Department of the Secretariat The Integration Committee of the EurAsEC V.S. Knyazev 13.12.2010

President

Republic of Kazakhstan

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