“Samruk-Energy” JSC | Integrated annual report
Strategy

Regulatory environment of the industry

The authorized body (the Ministry of Energy of the Republic of Kazakhstan) for the purpose of management in the power industry on the basis of Republic of Kazakhstan Law dated July 9, 2004 No. 588-II “On Power Industry”:

  • implements the state policy in the power industry;
  • develops and approves technical regulations in power industry;
  • develops and approves technical guidance documents in power industry;
  • determines special aspects of operation and organization of the wholesale electricity market for regions that do not have electrical connection throughout the territory of the Republic of Kazakhstan with the unified power system of the Republic of Kazakhstan;
  • pursues international cooperation in power sector;
  • develops and approves a prospective scheme for allocation of capacities;
  • performs other functions in accordance with the current legislation.

Services for transmission and distribution of electricity is included in the scope of natural monopoly and regulated by the Law of the Republic of Kazakhstan d/d July 9, 1998 No. 272-I “On Natural Monopolies and Regulated Markets”. The state body that manages in natural monopolies’ directions and regulated markets is the Committee for Regulation of Natural Monopolies and Protection of Competition of the Republic of Kazakhstan Ministry of National Economy (hereinafter – CRNMPC RK MNE).

CRNMPC RK MNE in accordance with the RK Law dated July 9, 2004 No. 588-II “On Power Industry”:

  1. Approves the procedure for differentiating energy tariffs by electricity supplying organizations by zones of the day and (or) depending on the volume of power consumption by individuals;
  2. Concludes investment agreements with energy producing organizations;
  3. Approves an individual tariff;
  4. Maintains, places and updates each ten days a register of organizations that have a license to conduct activities for the purchase of electricity for power supply purposes on the Internet resource;
  5. Controls over the compliance of energy supplying organizations with requirements of the current legislation, and issues binding instructions for eliminating the violations identified;
  6. Within its competence, develops and approves regulations defined by the Law;
  7. Exercises other powers determined by the Law, other laws of the Republic of Kazakhstan, decrees of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.

The Ministry of Energy of the Republic of Kazakhstan, in accordance with the Regulation on the Ministry of Energy of the Republic of Kazakhstan, approved by the Government of the Republic of Kazakhstan on September 19, 2014, No. 994, in coal industry, develops draft lists of sites of subsurface resources containing hydrocarbons, coal and uranium to be tendered.

In accordance with the order of the Acting Minister for Investment and Development of the Republic of Kazakhstan dated October 15, 2014 No. 67, the Committee for Geology and Subsoil Use of the Republic of Kazakhstan Ministry of Investment and Development performs the following functions in the coal industry:

  1. Exercises state control over the study and use of subsoil resources;
  2. Within the limits of its competence, controls over the performance of contract terms by subsoil users;
  3. Carries out state monitoring of subsoil resources;
  4. Exercises other powers stipulated by the legislation of the Republic of Kazakhstan.
“Samruk-Energy” JSC | Integrated annual report
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