Adopted by the House of Representatives on November 15, 2002

Approved by the Council of Republic on December 2, 2002

On Natural Monopolies

The present Law determines the legal bases of regulation of the public relations arising in the spheres of the activity of the natural monopolies entities at the commodity markets of the Republic of Belarus and is directed on achieving the balance of interests of the consumers and the natural monopolies entities providing the accessibility of the realized goods to the consumers and effective functioning of the natural monopolies entities.

Article 1. Main Terms and Definitions

For the purposes of the present Law and following main terms and their definitions are used:

natural monopoly—a system of public relations sanctioned by the state at which the satisfaction of the demand on the commodity market is more effective at the absence of competition because of technological peculiarities of the production (in connection with the substantial reduction of the production expenses at one unit of the commodity as far as the amounts of its production increases), and the relevant goods cannot be replaced in their usage with other goods, in connection with that the demand at this commodity market is far less dependant on the change of the price than the demand on other goods;

consumer—a civil law entity having an intention to order or acquire the goods or ordering or acquiring the goods produced (realized) in conditions of the natural monopolies by the natural monopolies entities;

head of the natural monopoly—an official authorized to act without a letter of authorization on behalf of the natural monopoly entity;

natural monopoly entity— a legal person of the Republic of Belarus carrying out the production (realization) of the goods in the conditions of the natural monopoly.

The terms "goods", "commodity market", "economic entities", "price" are applied in the definitions determined in the article 1 of the Law of the Republic of Belarus of December 10, 1992 "On Counteraction to the Monopoly Activity and Development of Competition" in edition of the Law of the Republic of Belarus of January 10, 2000.

Article 2. The Scope of the Present Law

The regulation of the activities of the natural monopolies entities provided by the present Law cannot be applied in the spheres of activity not relating to the natural monopolies, if otherwise is not established by the legislation.

Article 3. Spheres of Activities of the Natural Monopolies Entities

The following is recognized as the spheres of activity of the natural monopolies entities:

transportation of oil and mineral oils through main pipe lines;

transportation of the gas through main and service pipe lines;

transfer and distribution of the electric and heat energy;

central water supply and water drainage;

services of electric and postal communication of general use;

services rendered by the communications of the rail road providing the transport of general usage traffic, management of the trains traffic, rail road carriage;

services of the transport terminals and airports;

maintenance and exploitation of the airways, management of the air traffic.

Article 4. Rights of the Natural Monopolies Entities

Natural monopoly entities have the right:

to introduce to the body regulating the activity of the natural monopoly entity the suggestions on the questions concerning their activity and legal status;

to appeal in the order established by the legislation of the Republic of Belarus to the body regulating the of the natural monopoly entity with the request to exclude them from the Sate Register of the Natural Monopolies Entities;

to appeal in court the actions (inactions) of the body regulating the activity of the natural monopolies entities contradicting to legislation;

to have other rights in accordance with legislation.

Article 5. Duties of the Natural Monopolies Entities

The natural monopolies entities are obliged:

to give equal conditions to the consumers of goods produced (realized) in conditions of natural monopolies, except for the cases, when legislation of the Republic of Belarus allows granting the privileges to certain categories of the consumers;

to provide the quality service to consumers with the consideration of the prices established by the body regulating the activity of the natural monopolies entities;

to observe the requirements of the technical normative legal acts in the sphere of technical regulation and standardization, indications of safety and quality of goods, and also license requirements and conditions in case, if the kinds of entrepreneurs activity carried out by them are subject to licensing;

to apply the most effective methods and technologies of production (realization) of goods on conditions of observance of the public safety principle and principle of safety to life, health, property of citizens, property of legal persons and environment;

to carry out the decisions of the body regulating the activity of the natural monopoly entities;

to give the reports on their activity to the body regulating the activity of the natural monopoly entities at the form and terms established by this body, and also to present other information necessary for fulfillment of its powers provided by the present Law;

to carry out other duties in accordance with the present Law and other acts of legislation.

Article 6. Limitation of the Activity of the Natural Monopolies Entities

Natural monopolies entities, except for the cases established by the legislative act have no right to:

perform actions that lead or may lead to impossibility of production (realization) of goods in conditions of natural monopolies or to their replacement with other goods;

refuse to conclude with certain consumers the contract on production (realization) of goods in conditions of natural monopolies at presence of the possibility to produce (realize) such goods;

take the payment exceeding the amount established by the body regulating the activity of the natural monopolies entities for the goods produced (realized);

thrust the consumers the terms of access to goods produced (realized) in conditions of natural monopolies;

perform other actions (inactions) leading to limitation of rights of consumers and (or) contradicting to legislation.

Article 7. Principles of State Regulation of the Activity of the Natural Monopolies Entities

The state regulation of the activity of the natural monopolies entities is carried out on the basis of the following principles:

publicity and openness of the methods of state regulation;

directness of the sate regulation, its orientation to the concrete natural monopolies entity;

securing the protection of the rights of consumers.

Article 8. Methods of State Regulation of the Activity of the Natural Monopolies Entities

The state regulation of the activity of the natural monopolies entities is carried out by the following methods:

regulation of the prices on goods produced (realized) in conditions of the natural monopolies, that is carried out by establishing the fixed, marginal prices and order of their determination and application;

determining the categories of consumers subject to obligatory service by the natural monopolies entities, and (or) by fixing the minimal level of their provision with goods produced (realized) in the conditions of the natural monopolies, in case of impossibility to satisfy at full the need in these goods.

Determining the categories of the consumers subject to obligatory service by the natural monopolies entities is carried out by the President of the Republic of Belarus, Government of the Republic of Belarus and republican bodies of state management authorized by it and also by the local executive and administrative bodies.

Article 9. Body Regulating the Activity of the Natural Monopolies Entities

The body regulating the activity of the natural monopolies entities is a republican body of sate management on which in accordance with legislation the functions on provision of the counteraction to the monopoly activity and development of competition are laid.

If the activity of the natural monopolies entities subject to regulation in accordance with the present Law is directed to satisfaction of the need of the certain region, the functions of regulation of the activity of the natural monopolies entities determined by the present Law can be delegated in order established by legislation to local executive and administrative bodies.

Article 10. Functions of the Body Regulating the Activity of the Natural Monopolies Entities

The body regulating the activity of the natural monopolies entities:

forms and conducts the State Register of the Natural Monopolies Entities in regard to which the state regulation and control is carried out;

determines the methods of regulation provided by the present Law as applied to a particular natural monopolies entity;

controls within its competence the observance of the requirements of the present Law;

introduces in order established by legislation the suggestions on improvement of legislation on natural monopolies;

carries out other functions provided by the present Law and other legislation.

Article 11. Powers of the Body Regulating the Activity of the Natural Monopolies Entities

The body regulating the activity of the natural monopolies entities:

takes the decision on inclusion of legal persons carrying out the activity in the sphere of activity of the natural monopolies entities into the State Register of the Natural Monopolies Entities or on exclusion from it;

takes the decisions on introduction, changing or termination of the state regulation, on application of the methods of state regulation provided by the present Law obligatory for all natural monopolies entities;

takes in accordance with its competence the decision on the facts of violation of the present Law;

directs to the natural monopolies entities the decisions obligatory for fulfillment on stopping the violations of the present Law, including on elimination of their consequences, on concluding the contracts with the consumers subject to obligatory service and on introduction of changes into the contracts concluded;

directs to the republican bodies of state management, sate organizations subordinate to the Government of the Republic of Belarus, local executive and administrative bodies the decisions on abolishment of the acts adopted earlier by them not complying with the present Law, or on introduction of alternations into them and (or) on termination of the violations of the legislation on natural monopolies;

requests and receives information necessary for fulfillment of its functions from the state bodies, legal and natural persons;

appeals to court with the claim, and also participated in consideration of cases connected with application and violation of the present Law in court;

exercises other powers in accordance with legislation.

Article 12. The Sate Control in the Sphere of Activity of the Natural Monopolies Entities

The body regulating the activity of the natural monopolies entities, other state bodies within their competence for the purposes of conducting an effective state policy in the sphere of the activity of natural monopolies entities, in relation to which the regulation or containment of economically feasible transition of the relevant commodity market from the sate of the natural monopolies to the sate of competition according to the present Law is applied, carry out the state control over the actions that are conducted with the participation or in relation to the natural monopolies entities and can have the limitation of the interests of the consumers as their result.

Article 13. State Control over the Deals Conducted by the Natural Monopolies Entities

The body regulating the activity of the natural monopolies entities, other state bodies within their competence carry out the state control over:

any deals as the result of which the natural monopoly entity acquires property right on the permanent assets or the right of usage of the permanent assets not designed for the production (realization) of goods in conditions of natural monopolies, if the cost of such permanent assets exceeds 10 percent of the cost of the pure actives of the natural monopoly entity according to the last balance;

investments of the natural monopoly entity into the production (realization) of goods that in accordance with the article 3 of the present Law is not referred to the sphere of activity of the natural monopolies entities at the amount exceeding 10 percent of the cost of pure actives of the natural monopoly entity according to the last balance;

any deals as the result of which a legal or natural person acquires the property right on the part of the permanent assets of the natural monopoly entity designed for production (realization) of goods in conditions of the natural monopolies or the right to possession and (or) usage of such part, if their balance cost exceeds 10 percent of cost of pure actives of the natural monopoly entity according to the last balance.

For conducting the actions mentioned in the paragraph two, three and four part one of the present article, the natural monopoly entity is obliged to submit a petition on giving a consent to conduct such actions to the body regulating the activity of the natural monopolies entities and also present the documents and/or data necessary for taking the decision. The list of the documents and/or data is determined by the Council of Ministers of the Republic of Belarus.

The body regulating the activity of the natural monopolies entities has the right to take the motivated decision on:

satisfaction of petition;

rejection of the petition, if the actions declared in it can lead to negative consequences mentioned in article 12 of the present Law, and also in cases if it is established, while considering the submitted documents and/or data, that the information contained in them, which is of importance for taking the decision, is untrue and/or incomplete;

refusal to accept the petition on the ground specified in part 5 of the present article.

The decision on satisfaction or rejection of the petition shall be adopted by the body regulating the activity of the natural monopolies entities not later than 30 days from the day of reception of the petition. The body regulating the activity of the natural monopolies entities not later than 5 days from the day of taking the relevant decision is obliged to direct its copy to the natural monopoly entity.

When the body regulating the activity of the natural monopolies receives the petition without submission of necessary documents and/or data, determined by the Council of Ministers of the Republic of Belarus, the body regulating the activity of the natural monopolies shall, within 10 days from the day of receipt of the petition, the decision on refusing to accept the petition.

If within 15 days form the day of expiration of the term of consideration of the petition the answer of the body regulating the activity of the natural monopolies entities is not received or the satisfaction of the petition is rejected on the grounds that the petitioner considers illegal, he has the right to appeal to court for the protection of his rights.

The decision of the body regulating the activity of the natural monopolies about satisfaction of the petition is valid within one year from the moment of its receipt.

Article 14. State Control over the Deals Conducted with the Stock (Shares in Statutory Funds) of the Natural Monopolies Entities and Other Economic Entities

Legal or natural person that as the result of acquiring of the stock (shares in the statutory fund) of the natural monopoly or as the result of other deals (including contracts of commission, trust, pawn) acquires more than 10 percent of total quantity of votes fallen to all stock (shares in the statutory fund) of the natural monopoly entity, is obliged to notify the body regulating the activity of the natural monopolies entities about it not later than 30 days form the day of conclusion of the relevant deal. The legal or natural person, stock of which accounts more than 10 percent of the total quality of votes fallen to all stock (shares in statutory fund) of the natural monopoly entity, is obliged to notify the body regulating the activity of the natural monopolies entities about all cases of changes of the quantity of votes belonging to him.

The natural monopoly entity acquiring the stock (shares in statutory fund) of other economic entity granting him more than 10 percent of the total quantity of vote, or conducting the deals with the stock (shares in the statutory fund) of this economic entity, if the stock (shares in the statutory fund) of natural monopoly entity belonging to it accounts more than 10 percent from the total quantity of votes, is obliged to notify the body regulating the activity of the natural monopolies entities about it not later than 30 days from the day of concluding the relevant deal.

The body regulating the activity of the natural monopolies entities, other state bodies within their competence in order to carry out the control over observance of the requirements provided by the parts one and two of the present article, have the right to request at the economic entities the information on their auctioneers (participants) having more than 10 percent of total quantity of votes fallen to all stock (shares in statutory fund) of such economic entities.

Article 15. Informing the Body Regulating the Activity of the Natural Monopoly Entities on the Decisions Taken

Body regulating the activity of the natural monopolies entities is obliged to inform through mass media on the decisions taken on inclusion of the legal persons carrying out the activity in the spheres of the activity of the natural monopolies entities into the Sate Register of the Natural Monopolies Entities or on its exclusion from it.

Article 16. Consequences of Violating of the Present Law

In case of violation of the present Law the natural monopolies entities, republican bodies of the state management, state organization subordinate to the Government of the Republic of Belarus, local executive and administrative bodies in accordance with the decision of the body regulating the activity of the natural monopolies entities are obliged to:

stop the violations of the present Law and (or) eliminate their consequences;

abolish or change the act not complying with the present Law;

conclude the contract with the consumer subject to obligatory service;

introduce changes to the contract concluded with the consumer;

perform other actions mentioned in the decision.

Article 17. Order of Taking the Decisions by the Body Regulating the Activity of the Natural Monopolies Entities

Questions on inclusion of the legal persons carrying out the production (realization) of goods in conditions of the natural monopolies into the Sate Register of the Natural Monopolies Entities and on exclusion from it, and also on application of the methods of state regulation of the activity of natural monopolies entities can be considered by the body regulating the activity of the natural monopolies entities at its own initiative or on the grounds of suggestions of the natural monopoly entity, state bodies, state organizations subordinate Government of the Republic of Belarus, consumers and public organization (associations) of the consumers.

A representative the natural monopoly entity has the right to be present at consideration of the questions on inclusion of the legal persons carrying out the production (realization) of goods in conditions of natural monopolies into the Sate Register of the Natural Monopolies Entities and on exclusion from it, and also on application of methods of state regulation of the activity of natural monopolies entities by the body regulating the activity of the natural monopolies entities. Body regulating the activity of natural monopolies not later than 15 days before consideration of the mentioned questions is obliged to direct to the natural monopoly entity a written notification of the date and place of their consideration.

Body regulating the activity of the natural monopolies entities takes the motivated decision on inclusion of the legal persons carrying out the production (realization) of good in conditions of natural monopolies into the State Register of Natural Monopolies Entities or on exclusion from it, and also on application of the methods of state regulation of the activity of the natural monopolies entities or on rejection to accept the suggestion made not later than 30 days from the day of its submission.

The decisions taken by the body regulating the activity of the natural monopolies entities are directed to the persons interested in written form not later than 5 days form its taking.

Article 18. Circumstances Considered at Taking the Decisions on Application of Methods of Sate Regulation of the Activity of the Natural Monopolies Entities by the Body Regulating the Activity of the Natural Monopolies Entities

The body regulating the activity of the natural monopolies entities takes the decision on application of the methods of state regulation of the activity of the natural monopolies entities provided by the present Law as applied to the concrete natural monopoly entity on the basis of analysis of its activity with the consideration of their stimulating role in increase of quality of the goods produced (realized) in conditions of the natural monopolies and in satisfaction of the demand of them. At that the following is taken into account:

compliance of the quality and quantity of the goods produced (realized) to the demand of the consumers;

costs of the production (realization) of goods including the salaries, costs of raw materials and materials, overhead expenses;

taxes and other obligatory payments paid by the natural monopoly entity into the republican and local budgets, state purpose budget and non-budget funds;

cost of main production assets, need in investments necessary for their reproduction and depreciation charges;

predicted profit from possible realization of goods at different prices;

remoteness of different groups of consumers from the place of production (realization) of goods;

state subsidies and other measures of state support.

Article 19. Order of Fulfillment of the Decisions of the Body Regulating the Activity of the Natural Monopolies Entities by the Natural Monopolies Entities

Decisions of the body regulating the activity of the natural monopolies entities are fulfilled by the natural monopolies entities, republican bodies of state management, state organization subordinate to the Government of the Republic of Belarus, local executive and administrative bodies in the term established by the decisions, if otherwise is not provided by the legislation.

In case of non-fulfillment of the decision of the body regulating the activity of the natural monopolies entities by the natural monopolies entity this body has the right to make a claim to court on compulsion of the natural monopoly entity to fulfill the decision, if other order of fulfillment of the decisions is not established by legislation.

Article 20. Order of Appeal of the Decisions, Other Actions (Inactions) of the Body Regulating the Activity of the Natural Monopolies Entities

Decision, other actions (inactions) of the body regulating the activity of the natural monopolies entities can be appealed by the natural monopolies entities, republican bodies of state management, state organizations subordinate to the Government of the Republic of Belarus, local executive and administrative bodies, consumers, public organizations (associations) of consumers, other legal and natural persons in court order.

In case of appealing the decision of the body regulating the activity of the natural monopolies entities its fulfillment is suspended till the decision of court enters into force.

Article 21. Entering into force of the Present Law

The present Law enters into force after 3 months after its official publication except for the article 22 that enters into force from the day of its official publication.

Article 22. Bringing the Acts of Legislation in Accordance with the Present Law

Till bringing legislation of the Republic of Belarus in accordance with the present Law, it is applied in the part not contradicting the present Law, if otherwise is not provided by the Constitution of the Republic of Belarus.

To the Council of Ministers of the Republic of Belarus in 6 months term from the day of publication of the present Law:

to prepare and introduce in established order to the House of Representatives of the National Assembly of the Republic of Belarus the suggestions on bringing the legislative acts of the Republic of Belarus in accordance with the present Law;

to bring the decisions of the government of the Republic of Belarus in accordance with the present Law;

to provide the review and abolishment of the normative acts contradicting to the present Law by the republican bodies of state management subordinate to the Council of Ministers of the Republic of Belarus.