Accepted at the thirty eighth plenary session of Inter-parliamentary Assembly of the State Parties of the CIS (The resolution of November 23, 2012 No. 38-14)

MODEL LAW

On regulation of transit fares

Article 1. Purposes, tasks and subject of regulation of this Law

1. The purpose of this Law is creation of the legal framework allowing to provide the choice of rational methods of impact on transport enterprises for realization of the principle of anticost intensity in already operating market rates for transport services and enhancements of system of rates for transportations and services in modes of transport including cargo, the economic premises directed to creation for increase in production, improvement of competition, ensuring effective export and strengthening of economy of regions of the state, and also the realization of the rational principle due to strengthening of control of cost dynamics directed to compensation and investments.

2. Provisions of this Law are directed on:

- forming of the principles, the purposes, tasks and general adjustment policy in the field of the transport services directed to achievement of balance of consumer interests and producers of transport products;

- determination of subjects to regulation taking into account objectives, ensuring availability of transport services to consumers and effective functioning of transport;

- the choice of methods of tariff regulation of these objects proceeding from the formulated principles, the purposes, tasks and adjustment policies;

- distribution of powers, tasks and functions between executive bodies on tariff and related non-tariff regulation of transport objects.

3. Subject of regulation of this Law is determination of the principles, the purposes and tasks of regulation of pricing on services of automobile, air, railway, sea and river modes of transport in the exclusive and competing sectors.

Article 2. Terms and determinations

Natural monopoly - condition of the goods market (the market of services) in case of which the satisfaction of demand in this market is more effective for lack of the competition owing to technological features of production (in connection with essential lowering of costs of production per unit of goods in process of increase in production volume) and goods (services) made by subjects of natural monopoly cannot be replaced in consumption with other goods (services) in this connection demand in this goods market for goods (services) made by subjects of natural monopolies to a lesser extent depends on the change in price for these goods (services), than demand for other types of goods (services);

exclusively high price - the price established by the business entity holding dominant position if it exceeds the amount necessary for production and sales of goods of expenses and profit and the price which was created in the conditions of the competition in the goods market comparable on the list of buyers or sellers of goods, conditions of the address of goods, conditions of access to the goods market, state regulation, including the taxation and customs and tariff regulation, in the presence of such market in the territory of the certain state or beyond its limits;

exclusively low price - the price established by the business entity holding dominant position if this price is lower than the amount necessary for production and sales of goods of expenses and profit and low price which was created in the conditions of the competition in the comparable goods market, in the presence of such market in the territory of the certain state or beyond its limits;

regulating authorities - the executive state body of the power given authority on establishment and regulation of rates, charges and payments, and regional executive bodies performing state regulation of rates, charges and payment and control of their determination (establishment) and application according to the procedure, established by the national legal system;

the subject of natural monopoly in the field of transport - the business entity occupied in the field of rail haulings, services in transport terminals, ports and the airports, services in use of infrastructure of inland waterways in the conditions of natural monopoly;

the subject of regulation - the subject of natural monopoly in the field of transport performing works (rendering the services) included in the list of works (services) of subjects of natural monopolies in the field of transport, rates, charges and concerning which payment are regulated by the state;

rate - price rate for works (services) performed (rendered) by subjects of state regulation;

tariff space of the State Parties of the Agreement - space on which the Single agreed principles of forming and application of tariff policy for international carriages act;

collection - the charge rate of additional transaction or work (service) performed (rendered) by subjects of regulation which is not included in rate.

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