Unscrupulous monopolists and management companies must be legally responsible for raising tariffs — Bakytzhan Sagintayev

At the meeting of the Government Nov. 13, 2018, measures to fulfill the instructions of the Head of State on tariff issues given at a recent meeting of the Security Council were considered. Prime Minister Bakytzhan Sagintayev gave a number of specific instructions for further work.

Immediately after the Security Council, the Government identified measures to reduce tariffs and, in general, ensure the transparency of the tariff system. A working group has been set up consisting of representatives from the Ministries of Energy, National Economy and the Prosecutor General. The main goal is to reduce tariffs for final consumers. In particular, the Methodology for determining the cost of electricity production is being developed. The development of legislative amendments to strengthen state control over the targeted use of natural monopolists and strengthen anti-monopoly activity has begun.

The ministries of energy and national economy were tasked until December 1 to prepare systemic measures that will reduce tariffs from Jan. 1, 2019. During the meeting, a number of important issues were noted. First, ensuring the transparency of the tariff setting process and, second, strengthening government control over pricing in the energy services market. It is necessary to quickly take all the necessary decisions to reduce tariffs.

The reports were heard and the actions of the ministries of energy and national economy were approved at the meeting.

At the same time, the Prime Minister noted that from Jan. 1, 2019, not only electricity and heat tariffs should be reduced, but also water and gas, sewage, telephone and Internet services. However, it is necessary to revise the tariffs of communal services. This is included in the powers of local akims. At the same time, with the reduction of tariffs, the quality of the services rendered by monopolists should not decrease, timely modernization of their production should be carried out. The created working group should work in these directions.

In terms of legislative changes, it was instructed, in the provision of the draft tariff, to take into account proposals and comments that will come from the public, experts, including in electronic format. Feedback must be established. Approval of tariffs of the consumption rate in the regions, included in the powers of akimats, should also take place publicly.

Following the consideration of the issue, the Prime Minister gave a number of specific instructions.

First. It is necessary to understand all the revealed facts of non-fulfillment by natural monopolists of tariff estimates and investment obligations, illegal inclusion in the cost of services of non-production costs. Unscrupulous monopolists and management companies that have earned a profit from over-charging should respond by law. The course of the investigation should be public. In two weeks the question of the current situation will be considered at the next Government meeting. The Prime Minister instructed to coordinate work with law enforcement agencies and prosecutors.

The Ministry of National Economy was instructed to report in two weeks on the targeted spending by the monopolists of funds allocated from the budget as subsidies. Reports on the results of monitoring the fulfillment of the obligations of organizations providing the population with a full range of utility services will be heard.

Second. The approaches of the Ministry of National Economy to restore order in the work of the Antimonopoly Committee and its regional divisions were supported. Sagintayev said that for his part, he reprimanded the Vice Minister of National Economy Serik Zhumangarin, who oversees the policy in the areas of natural monopolies and the work of the antimonopoly committee.

Third. By December 1, the ministries of energy and national economy should make a step-by-step plan on how and how much electricity and heat tariffs, water and gas supply, sewerage, telephone and Internet services, communal services will be reduced.

The president sets the task “to restructure work, to feel social responsibility, to be open and to earn people's trust.” In this regard, the ministries of energy and national economy were instructed to hold a round table in the first decade of December and discuss this action plan with the participation of regional offices, representatives of the prosecutor's office, monopolists, deputies, non-governmental organizations and the media.

Sagintayev noted that the public should know the Government’s approaches to ensuring transparency of tariffs pricing and setting marginal tariffs for 2019. The leadership of the ministries of national economy and energy, as well as the heads of territorial divisions must publicly report to the public and media on fulfillment of investment obligations by monopolists, reduction of tariffs and measures to return to the population resources illegally obtained by monopolists.

Fourth. Ministry of National Economy, together with interested government agencies, has been instructed to create a republican system for monitoring public utilities. The monitoring system should operate locally with public participation and address all issues related to tariffs, quality of services, and the needs of the population.

Ministry of National Economy was also instructed to open the Hotline on utility tariffs before the weekend. It is entrusted to regularly inform the media about the decisions taken.

Fifth. The ministries of national economy, energy and akimats of the regions were entrusted to take on special control the pricing of coal, gas, medicines and socially important goods of prime necessity. First of all, akims should identify possible “price collusion,” cheat mediators and prevent unreasonable overpricing.

Sixth. Ministries of education and science, and healthcare have been instructed to hold a meeting to address topical issues of concern to the population in these areas. Particular emphasis is on reducing the rates for training, as well as medical services and medicines. Deadline — two weeks.

Seventh. Ministry of Information and Communications was instructed to provide informational coverage of this work in all areas.

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