GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION no. 756 ON THE APPROVAL OF THE standard PROCEDURE FOR SETTING PRICES AND TARIFFS OF GOODS AND SERVICES OF A MONOPOLISTIC NATURE PROVIDED BY STATE-OWNED ENTERPRISES AND PUBLIC INSTITUTIONS ESTABLISHED BY MINISTRIES, GOVERNMENTal INSTITUTIONS AND COUNTY GOVERNORS AND ASSIGNED TO THEM 28 May 2002 Vilnius Following the Republic of Lithuania Law on Prices (Official Gazette Valstybės žinios No. 22-542, 1990) and seeking that prices and tariffs of goods and services of monopolistic nature provided by state-owned enterprises and public institutions established by ministries, governmental institutions and County Governors and assigned to them, should be set in the standard procedure, the Government of the Republic of Lithuania r e s o l v e s:
- To approve the standard procedure for setting prices and tariffs of goods and services of monopolistic nature provided by state-owned enterprises and public institutions established by ministries, governmental institutions and County Governors and assigned to them (attached).
- To commission ministries, governmental institutions and County Governors, within one month from coming into effect of this Resolution, to prepare and approve, upon co-ordinating with the Competition Service, the procedure for setting and applying prices and tariffs of goods and services of a monopolistic nature provided by state-owned enterprises and public institutions established and assigned to them.
- To commission the Ministry of Finance, in preparing the draft Law on Amending the Law on Approval of 2002 Financial Indicators of the State and Municipal Budgets, to plan the funds for the Competition Council, which are necessary to co-ordinate the procedure for setting and applying prices and tariffs of services of a monopolistic nature provided by state-owned enterprises and public institutions established and assigned to them
- To recognise as null and void Resolution No. 464 of the Government of the Republic of Lithuania of 13 November 1991 “On Liberalisation of Prices and Tariffs and Pricing Regulation in the Republic” (Official Gazette Valstybės žinios No. 35-968, 1991; No. 11-178, 1994). Prime Minister Algirdas Brazauskas Minister of Economy Petras Čėsna approved by Resolution No. 756 of the Government of the Republic of Lithuania of 28 May 2002 STANDARD PROCEDURE FOR SETTING PRICES AND TARIFFS OF GOODS AND SERVICES OF A MONOPOLISTIC NATURE PROVIDED BY STATE-OWNED ENTERPRISES AND PUBLIC INSTITUTIONS ESTABLISHED BY MINISTRIES, GOVERNMENTAL INSTITUTIONS AND COUNTY GOVERNORS AND ASSIGNED TO THEM I. GENERAL PROVISIONS
- The present Procedure shall form the basis for setting prices and tariffs of goods and services of monopolistic nature (hereinafter referred to as goods and services) provided by state-owned enterprises and public institutions established by the ministries, governmental institutions and County Governors and assigned to them.
- The provisions of the present Procedure shall not apply if the laws and other legal acts of the Republic of Lithuania provide for a special procedure for setting prices and tariffs. II. SETTING OF PRICES AND TARIFFS
- Prices and tariffs of goods and services of monopolistic nature (with the exception of prices and tariffs, which are approved by the Government of the Republic of Lithuania) provided by state-owned enterprises and public institutions established by the ministries, governmental institutions and County Governors and assigned to them shall be approved by the ministries, governmental institutions and County Governors (hereinafter referred to as the founders) upon co-ordinating them with the Competition Service.
- Enterprises and public institutions following the procedure for setting and applying prices and tariffs of goods and services of a monopolistic nature provided by state-owned enterprises and public institutions approved by the founders, shall submit the below specified documents: 4.
- a draft of the price list, which contains the name of goods (services), a technical description (characteristics) and the projected price (tariff); 4.
- an explanatory statement; 4.
- actual and planned calculations of expenditure; 4.
- deciphering of material and equated to them expenditures and labour costs; 4.
- calculations of the need for profit of the enterprise and the public institution.
- At request of the founder the enterprises and public institutions must submit additional explanatory statements about the actions, which had an impact on changes in the provision of goods and services, as well as financial data substantiating draft prices and tariffs and their calculations.
- The explanatory statement must contain the results (indicators) of the economic and financial activity of the state-owned enterprise or the public institution during the past accounting period and to substantiate the reasons why it is proposed to change prices and tariffs of goods and services.
- In preparing drafts of setting (or changing) prices and tariffs, the economically substantiated prime cost of goods (services) during the specific period must be taken as the basis as has been provided for in the procedure for setting and applying prices and tariffs of goods and services approved by the founder. The prime cost (expenditure) of goods (services) shall be established on the basis of accounting and reasoned standard costs of corresponding goods (service).
- Prices and tariffs of goods and services may be differentiated taking into consideration peculiarities of the formation of the prime cost, prices and tariffs, other factors, provided this has been specified in the procedure for setting and applying prices and tariffs of goods and services approved by the founder.
- In setting prices and tariffs of goods and services and ensuring profit, the principle must be followed that they must recover economically grounded production costs and ensure profit, which determines the development and improvement of the infrastructure taking into account the need for goods and services and their impact on the country’s market, their social significance, inflation, as well as other factors determining them.
- Founders of enterprises and public institutions in co-ordinating prices and tariffs of goods and services, shall submit documents specified in Points 4-6 of this Procedure or specified in the Procedure for setting and applying prices and tariffs of goods and services approved by them. The Competition Council shall have the right to receive additional documents, provided that they are necessary to co-ordinate prices and tariffs.
- The Competition Council shall consider the drafts of prices and tariffs of goods and services presented by the founder and within 14 days from the day of receipt of the application and the documents shall give its conclusions.
- Prices (tariffs) that are submitted to the Government of the Republic of Lithuania for approval, as well as the material substantiating them, must be prepared following the provisions of this Procedure, unless the Government of the Republic of Lithuania, the founder of the enterprise and the public institution establishes that other documents and other material substantiating prices (tariffs) must be submitted.
- Prices (tariffs) of goods and services may be reduced – a lower price (tariff) may be set without co-ordinating it with the founder, however informing the latter thereof.
- Heads of enterprises and public institutions shall be directly liable for correct application of prices and tariffs and must provide information to the Competition Council, which is necessary to control prices and tariffs.
- Prices and tariffs of goods and services approved by the founder shall be announced in the established procedure in the supplement Informaciniai pranešimai (Information Supplement) of Valstybės žinios (Official Gazette). ––––––––––––––––