RESOLUTION OF THE NATIONAL COMMISSION OF REGULATION OF POWER INDUSTRY OF UKRAINE

of February 17, 2011 No. 243

About approval of the Procedure for forming of rates for centralized water supply and drainage system

According to the Law of Ukraine "About the National commission of regulation of the market of utilities of Ukraine", the Presidential decree of Ukraine of 14.03.95 N 213 "About measures for ensuring activities of the National commission on questions of regulation of power industry of Ukraine", the Law of Ukraine "About drinking water and drinking water supply" the National commission of regulation of power industry of Ukraine DECIDES:

1. Approve the Procedure for forming of rates for centralized water supply and drainage system it (is applied).

2. This resolution becomes effective from the date of its official publication.

Approved by the Resolution of the National commission of regulation of power industry of February 17, 2011, No. 243

Procedure for forming of rates for centralized water supply and drainage system

I. General provisions

1.1. This Procedure is developed according to the Laws of Ukraine "About the National commission regulation of the market of utilities of Ukraine", "About drinking water and drinking water supply", "About housing and communal services".

1.2. This Procedure determines the mechanism of forming of rates for centralized water supply and drainage system for subjects of natural monopolies which perform or intend to perform economic activity on centralized water supply and drainage system based on the corresponding licenses.

1.3. This Procedure is applied by NKRE in case of establishment of rates for centralized water supply and drainage system to subjects of the natural monopolies noted in Item 1.2 of this Section and extends to such subjects when calculating them these rates.

1.4. In this Procedure the terms below are used in the following value:

base period - calendar year which precedes planning period;

establishment of rates - approval for licensees the relevant resolution NKRE of rates on centralized water supply and to drainage system on certain structure;

investing program - the plan of use of funds for implementation of necessary investments with determination of objects and amounts of investment (including acquisition and establishment of house means of accounting of water), sources of financing and the schedule of accomplishment of investment actions, for planning period or longer term (with determination separately indicators of planning period) with the corresponding technical and economic calculations and reasons which confirm feasibility and efficiency of expected investments;

the licensee - the subject of housekeeping who obtained the license for implementation of certain type of the economic activity which is subject to licensing (centralized water supply and drainage system);

operating activiies - the main activities of the licensee, and also other types of activity which are not investing or financial activities;

the main activities - the transactions connected with production or sales of products (goods, works, services) which is main goal of creation of the company and provide the main part of its income;

planning period - the period lasting 12 months for which calculations of rates are perfromed;

structure of rates - the list of economically reasonable expenses on implementation in planning period of certain type of licensed activities which are grouped in expenditure items of cost according to the Provision (standard) of the financial accounting 16 "Expenses" approved by the order of the Ministry of Finance of Ukraine of 31.12.99 N 318, registered in the Ministry of Justice of Ukraine 19.01.2000 for N 27/4248 (with changes), and target profit based on which rates are calculated and established;

rates for centralized water supply and drainage system - unit cost (1 CBM) of centralized water supply or drainage system of the corresponding quality as monetary value of planned economically reasonable costs taking into account target profit.

1.5. Calculation of rates joins expenses by each type of licensed activities which account is kept by the licensee separately.

1.6. The licensee performs expense allocation between centralized water supply and drainage system and other types of economic activity in the procedure established by the legislation.

1.7. Expenses which are not used do not join in calculation of rates or exceed expense limits for determination of the taxation object according to the Section III of the Tax code of Ukraine.

1.8. In case of change during the effective period of rates of separate expenses on implementation of licensed activities for centralized water supply and drainage system which occurred for the reasons independent of the licensee, in particular rates of taxes and fees (obligatory payments), the level of minimum wage, rates of the rent and the depreciation charges, the prices and rates on fuel and energy and other material resources, transfer of rates by adjustment only of those compound expenses of structure of rates on which there were specified price changes towards increase or reduction can be applied.

1.9. For the purpose of stimulation of reducing specific expenses of fuel and energy and other material resources of means which arrived as a result of implementation of actions for energy saving during effective period of rates can be used by the licensee in accordance with the established procedure for recovery of assets, financial incentive of workers and other purposes, according to the current legislation.

1.10. For establishment of rates for centralized water supply and drainage system the licensee submits to NKRE in printing and electronic type the statement in the established form (appendix 1), calculations of rates for planning period for forms according to appendices 2 - 9 to this Procedure with the corresponding settlement, confirmatory and reasoning materials, and also set of the documents determined by the procedure of establishment of rates for services in centralized water supply and drainage system.

II. Forming of rates for centralized water supply and drainage system

2.1. Forming of rates by the licensee is performed according to annual plans of licensed activities for centralized water supply and drainage system and economically reasonable planirovanny expenses determined according to cross-industry, industry and regional techniques, other regulating documents by regulation for requirements of industries (subindustries) and regions in which the main features of engineering procedures of specific production, including industry technological standard rates of use of drinking water, at the companies of water and sewer economy, technical and economic calculations and estimates, rates of taxes and fees (obligatory payments) and the prices of material resources and services in the planirovanny period are considered.

2.2. Annual plans of licensed activities for centralized water supply and drainage system are developed separately by types of licensed activities (water supply, drainage system) based on actual for the last five years and the centralized water supply predicted amounts and drainage system taking into account the signed contracts with consumers and other technical and economic factors, in particular:

changes of amounts of centralized water supply and drainage system as a result of economic development of the settlement;

implementation of actions for decrease in the expense level on the technological needs for drinking water and to its losses in production process and transportations, equipment by metering devices of use of water resources, productions and realization of drinking water, increase in requirements, concerning quality of centralized water supply and drainage system;

increases in level of engineering procedure of production, transportation and provision of centralized water supply and drainage system by implementation of actions for automation and mechanization of production, replacement of the amortized networks and the equipment, application of progressive energy-saving technologies;

increases in level of production organization and conditions of labor organization by enhancement of operational production planning, management systems, it is material - technical supply of economic activity.

Annual plans of licensed activities for centralized water supply and drainage system are approved in the procedure established by the legislation.

2.3. Calculation of rates for centralized water supply and drainage system is performed by division of annual planned costs of complete cost and annual target profit into the annual sales amount of centralized water supply and drainage system determined by annual plans (Item 2.2 of this Section).

2.4. Calculation of planned costs of complete cost of centralized water supply and drainage system and target profit is performed per 12 months.

2.5. Planning of expenses of complete cost of centralized water supply and drainage system is performed on planning of expenses of operating activiies and the financial expenses connected with the main activities. The specified expenses are grouped in Articles according to the Provision (standard) of financial accounting 16 "Expenses" approved by the order of the Ministry of Finance of Ukraine, of 31.12.99 N 318, registered in the Ministry of Justice of Ukraine 19.01.2000 for N 27/4248 (with changes).

On operating activiies join in planned costs:

planned production cost of sales of centralized water supply and drainage system;

planned administrative expenses, distribution costs, other expenses on operating activiies of centralized water supply and drainage system.

2.6. Planning of expenses is performed using regulatory method based on the state and industry standard rates of use of material and fuel and energy resources, regulations and quotations on compensation, standard rates of management expenses and to production servicing.

Expenses which objective regulation is impossible, are planned taking into account economically reasonable expenses for previous year of the forecast of indexes of the change in price of producers of industrial output and based on planned estimates.

2.7. Expenses which are not used do not join in calculation of rates or exceed expense limits for determination of the taxation object according to the Section III of the Tax code of Ukraine.

2.8. The complete planned cost of centralized water supply and drainage system join the depreciation expenses determined according to the Tax code of Ukraine.

2.9. The complete planned cost of centralized water supply and drainage system join expenses on repair and other improvement of fixed assets in the limits determined by the Tax code of Ukraine.

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