The Government meeting chaired by the Prime Minister Bakytzhan Sagintayev, first of all, considered the execution progress of the Head of State’s instructions given at the recent meeting of the Security Council. Minister of National Economy Timur Suleimenov reported on the measures taken to reduce tariffs and, in general, to ensure the transparency of the tariff setting system.

 

In order to implement the instructions of the Head of State, given at the Security Council Nov. 7, 2018, the ministry has taken a number of measures.

In the framework of short-term measures, firstly, work has been done to reduce tariffs for monopolistic services in the field of transmission and supply of electric energy, as part of the execution of a submission from the General Prosecutor's Office of the Republic of Kazakhstan.

Second, in order to organize feedback with the population in all regional centers, the cities of Astana, Almaty and Shymkent, as well as cities of regional significance, public receptions were opened Nov. 12, 2018, on problematic issues in the housing sector with the participation of the media, local executive bodies, National Chamber of Entrepreneurs, Nur-Otan party, public associations and other interested parties.

Suleimenov reported that 617 people participated in the first day only. Such public receptions will be held on a weekly basis.

Third, according to the results of public receptions, in case of complaints before Nov. 16, 2018, unscheduled inspections of the activities of the basic monopolists that provide water, drainage, heating, transmission, electricity and gas will be organized.

The Minister of National Economy also reported on the medium-term measures taken. Thus, in order to enhance the transparency of tariff formation and control over the execution of tariff estimates and investment obligations by monopolists, changes are already being made to existing legislation.

First. The draft law “On Natural Monopolies,” which is in the Mazhilis of the Parliament, provides for the involvement of public associations for the protection of consumer rights in the process of considering monopolists' reports on the implementation of tariff estimates and investment programs. The minister stressed that in order to ensure a decent representation of consumer interests, it is proposed to finance them from the state budget at the expense of social procurement based on certain qualification requirements for them.

In addition, the draft law provides for the transfer to electronic format of consideration of applications by monopolists for the approval of tariffs and ensuring full access to materials and calculation of tariffs for all consumers.

“The E-monopolist information system has been introduced July 1, 2018. Through this database, the proposals submitted by consumers will be systematized, followed by their discussion at public hearings,” Suleimenov reported.

Second. According to the Ministry of National Economy, a draft conclusion on the amendment of the Deputies of the Majilis to the draft law “On Natural Monopolies” is currently under consideration, providing for:

1. Introduction of external technical expertise on the execution of measures of the monopolists investment program.
2. Introduction of the public monitoring institute for the implementation of investment programs, visiting facilities of housing and communal services, with the participation of media representatives, Atameken NCE, public associations, local executive bodies and other stakeholders.
3. Transition from annual to semi-annual public reporting of the monopolists to consumers on the implementation of tariff estimates and measures of investment programs.

“In order to ensure full state control over the targeted use of funds by monopolists, the ministry prepared new amendments to the legislation providing for the revision and tightening of the system of inspections of natural monopolies and socially significant markets,” said Suleimenov.

It is planned that, if approved, these amendments will be reflected in the draft laws “On Natural Monopolies” and “On the Development of the Business Environment and Regulation of Trading Activities.” Both draft laws are under consideration by the Mazhilis.

 

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