It was stated at the Committee meeting that ‘these amendments seek to adjust the rights of The Cabinet of Ministers of Ukraine and regulatory bodies, to establish standard limit expenditure taken into account in regulating prices and tariffs for goods and services provided by natural monopolies in various sectors, to bring down non-efficient expenditures by natural monopoly entities´
The Bill (Reg. No. 0979) alters the procedure for price setting within natural monopolies. The Bill purports that the following amounts shall be disregarded in the regulation of prices/tariffs for goods manufactured by natural monopolies: the amounts of uncollected invoiced debts, doubtful debt reserve deduction; totals of acknowledged fines and penalties; funds or the cost of commodities voluntarily transferred or handed over to other legal entities and natural persons, including financial or material aid, together with charitable, sponsorship and patronage assistance; shortages and losses due to damage of assets; the cost of sold industrial stocks; maintenance costs of socio-cultural facilities with the exception of special cases as defined under a procedure established by The Cabinet of Ministers of Ukraine.
Committee members feel that the regulation procedure for prices (tariffs) of commodities manufactured by natural monopolies are totally in line with the requirements set out in the Clause of the Law ‘ On Prices and Pricing´, and reading ‘ the State and regulated prices and tariffs shall be established for those resources significantly influencing the performance and general level of prices for goods and services of decisive social significance, and for products, goods and services whose production is concentrated in companies having a monopoly ( market dominant position) in the market.´