OREANDA-NEWS. May 20, 2014. The new draft Tariff Policy Programme until 2020 offers a stage-by-stage merger of small separate subjects of natural monopolies in Kazakhstan. It has been reported by the head of the Kazakhstan Agency for Regulation of Natural Monopolies (ARNM) Murat Ospanov.

According to him, the presence of small subjects of natural monopolies, especially in the areas of energy and water, affect both the final price of the regulated services and their quality.

In addition, the presence of a large number of small energy transmission organizations in the energy sector leads to artificially high end tariff for electricity, which has a negative impact on both the welfare of the population and on the competitiveness of domestic products.

"In this regard, the Agency having made a comprehensive analysis of the current situation, considers stage-by-stage merger of small separate subjects of natural monopolies in Kazakhstan possible," the head of the ARNM said.

It should be noted that the draft program offers to merge urban water utilities first, as they are all owned by the state, then the enterprises in the heating sector and electricity sector in future.