Kazakhstan proposes to create a council to increase transparency of tariff formation
In Kazakhstan, it is proposed to create a Tariff Policy Council to increase transparency of tariff formation, said Vice Minister of National Economy Serik Zhumangarin, presenting the draft law on Natural Monopolies.
"To increase transparency of tariff formation and public involvement in this process, it is planned to introduce a number of new institutions, including a Tariff Policy Council," the vice minister said.
Serik Zhumangarin explained that the Tariff Policy Council will make proposals to the authorized body to determine the method of tariff regulation, discuss and develop recommendations for projects of investment programs of the natural monopoly entity, as well as hear reports on implementation of tariff estimates.
"The Council will include deputies of the Parliament, representatives of the NCE, public associations, independent experts and others," added Zhumangarin.
It is also planned to create a public association of consumers of services of natural monopoly entities.
It is assumed that this association will represent the interests of consumers in relations with the authorized state bodies, natural monopoly entities, courts and other persons.
The draft law provides for a period of validity of tariffs for services for 5 years or more, said Zhumangarin, presenting the bill.
"The validity period of tariffs will be 5 years or more, the tariff will consist of three main components: operating expenses, income on invested capital, return on invested capital," Serik Zhumangarin said.
According to him, operating expenses will be divided into two groups - controlled and uncontrolled expenses.
"The controlled expenses include such costs as production costs, repair costs, a payroll for production personnel, other costs necessary to support the production process, administrative costs," the vice minister explained.
The uncontrolled expenses include the costs for payment for services provided by organizations that carry out regulated activities, as well as taxes and charges provided for by law, the increase or decrease of which is not controlled by the natural monopoly.
