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Kazakhstan reconsiders electricity generation tariffs

Oil&Gas Materials 30 March 2021 17:59 (UTC +04:00)
Kazakhstan reconsiders electricity generation tariffs

BAKU, Azerbaijan, March 30

Trend:

The maximum tariffs of thermal power plants will increase by an average of 15 percent in Kazakhstan from April 1 to finance their modernization, Kazakh Deputy Minister of Energy Kairat Rakhimov said, Trend reports with reference to the ministry.

The maximum tariffs for 37 out of 45 energy-producing organizations in Kazakhstan will be increased from April 1, 2021. In accordance with the submitted applications, the growth of the maximum tariffs was forecasted at the level of 36 percent. The validity of the submitted applications was analyzed for more than six months.

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

“When considering them, the ministry applied an individual approach for each case,” Rakhimov said during a briefing at the Central Communications Service. “The applications requiring timely settlement were taken into account. The average increase in the maximum tariffs of energy-producing organizations throughout Kazakhstan is projected at the level of 15 percent.”

“Most of Kazakhstan's energy sources were put into operation in the 1960s and 1970s,” Rakhimov added. “As of 2020, the depreciation of energy assets in Kazakhstan reaches 53 percent. Accordingly, the main costs in the generation sector were directed to maintaining them active. The level of profitability of most stations is lower than the actual costs.”

The timely adjustment of the maximum tariffs at power plants will make it possible to qualitatively modernize, to repair them in a timely manner, to successfully spend the autumn-winter period of 2021-2022 and reduce the number of emergency situations.

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