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Prices for electricity and gas will not change in Astana

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Price regulation on the retail sale of electricity and liquefied gas in Astana will continue from 1st of January 2017

Today, at the site of the Chamber of entrepreneurs of Astana was organized a meeting on explanation of the changes in the field of state price regulation, which will take place from 1st of January 2017.

Opening the event, Deputy Director of the Chamber of entrepreneurs of Astana Almat Dzhunusov noted that the main task of the Chamber is to create a platform for dialogue between state bodies and businesses. In this regard, the Chamber regularly organizes seminars, "round tables", which are of consultation and explanatory nature.

This time, their explanations about the transition from the state price regulation to antitrust gave the head of the Committee for Regulation of Natural Monopolies and Protection of Competition of MNE RK in Astana city Bolat Tanabergenov.

He said that these changes in regulated markets in the field of railway transport, electro - and power system, petroleum products, transportation of oil, civil aviation, postal services, as well as gas are expected from 1st of January  2017. Transition to antimonopoly regulation corresponds to the OECD recommendations, submitted upon review of competition policy in the Republic of Kazakhstan.

"Reform of the system of regulation occurs through the transition from the price to the antimonopoly regulation, i.e. it is the suppression of disorders associated with the establishment of monopolistically high prices, the tightening of anti-cartel activity, prevention of vertical agreements and others. At the same time the abolition of the price regulation bears certain risks, such as unreasonable growth of prices on services, which are provided by market entities of individual industries, which have a multiplier effect on the economy or cause social tensions. In this regard, the Ministry of National economy analysis, by the results of which was prepared a list of markets, proposed for classification as socially important markets, where a departure from the state regulation of prices will be gradual", - said Bulat Tanabergenov.

Such socially important markets include some services in the field of gas, railway transport, civil aviation and electricity.

Currently, the Department regulates prices of 12 market players in 18 services areas: electric power - one subject, gas - five subjects with nine services, railway - six subjects with eight services. From 1st of January 2017 the Department of the Committee for the regulation of natural monopolies and protection of competition of MNE RK of Astana city will continue price regulation of retail electricity sales through JSC "Astanaenergosbyt" and retail sales of liquefied gas through the GRU - LLP "Astana city gas". As of the new year, the prices of these market participants will remain at the current level", - said Bulat Tanabergenov.

The other subjects are transferred to the anti-monopoly regulation. At the same time, he noted that in case of "sharp" price hikes, which indicates the presence of signs of violations of competition law by subjects, the competition authority may impose response measures, including higher penalties.

"In the case of inability of subjects to work on the basis of market laws and competition rules of the Entrepreneurial Code of the Republic of Kazakhstan provides for the right introduction of state regulation of prices, as at the commodity market, and for the individual subject", - said the speaker.


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