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01 April, 2021
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Kazakhstan revised tariffs for electricity production

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Starting from April 1, the marginal tariffs of thermal power plants will increase by an average of 15% to finance their modernization, Deputy Energy Minister Kairat Rakhimov said.

The marginal tariffs of 37 of 45 energy-producing organizations (EPO) in Kazakhstan will be increased from April 1, 2021. According to the submitted applications, the growth of marginal tariffs was predicted at the level of 36%. The validity of the submitted applications was analyzed for more than six months.

As a result of the work carried out and discussions, the share of the increase in the declared levels of marginal tariffs of stations was reduced by more than two times.

- When considering them, the ministry applied an individual approach to each case. Applications requiring a timely decision were taken into account. The average increase of marginal tariffs of energy-producing organizations in Kazakhstan is projected at 15%, - Rakhimov said during a briefing at the Central Communications Service.

According to Rakhimov, the most of the energy sources of Kazakhstan were put into operation in the 60-70s of the last century. By the end of 2020, the depreciation of energy assets in Kazakhstan is 53%. Accordingly, the main costs in the generation sector were directed to maintaining them in working order - the level of profitability of most stations is lower than the actual costs.

- particular concern is the quality of the repair companies carried out at power plants, due to underfunding. Unfortunately, the permissible levels of spending on repair campaigns, included in  marginal tariffs, do not fully cover the necessary needs, - Rakhimov stressed.

For this reason, about 2,000 MW are constantly under repair and unavailable for electricity generation for various reasons, which is comparable to the total consumption of three southern regions - Zhambyl, Turkestan and Kyzylorda.

Due to underfunding, there is an increase in the number of accidents and technological outages. In 2020, 4 458 technological violations were committed in the Unified Electric Power System of Kazakhstan (11% increase compared to 2019). Every major technological failure is a risk of an accident of the entire energy system of Kazakhstan.

Timely adjustment of the marginal tariffs at electric power stations will allow for high-quality work on their modernization, as well as timely and fully carry out repairs for the successful passage of the autumn-winter period of 2021-2022 and the reduction of emergency situations.

In addition, the revision of tariffs will help to save about 23 thousand jobs of production personnel of 45 energy-producing organizations, on which the smooth operation and supply of the country and consumers of Kazakhstan with electricity depend. 

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