Kazakhstan expects a new increase in electricity prices for households. Preferential purchase prices for regional energy companies have already risen, which may lead to higher tariffs, according to infohub.kz.
According to the updated list of targeted support recipients published on the website of the Settlement and Financial Center (SFC) under the Ministry of Energy, preferential prices from the single purchaser for regional energy supply companies (RECs) serving the population have increased since mid-July. The single purchaser sells electricity to large consumers at an average wholesale price, while RECs receive preferential tariffs set by the regulator. This differentiation keeps prices for households lower than for direct participants in the wholesale market, but in effect, large consumers subsidize households.
For example, in May the average wholesale price of the single purchaser was 34.97 tenge per kWh excluding VAT, more than double the preferential prices for RECs in the first half of the year. At the beginning of the year, wholesale prices ranged from 29 to 32 tenge, so the Committee for Regulation of Natural Monopolies (CRNM) was forced to raise preferential rates in line with rising wholesale quotes. Moreover, in the second half of the year, another increase in power plant tariffs is possible, which could push the average wholesale price to 42–43 tenge per kWh excluding VAT. Thus, the CRNM's decision merely reflects the dynamics of the wholesale market, and without the increase in preferential prices, the gap for large consumers would be even larger.
An analysis of the semi-annual list of targeted support recipients shows that preferential prices have risen by an average of 3 tenge. For instance, at Astana-REC the rate increased from 13 to 16 tenge per kWh excluding VAT. Similar changes occurred in other regions: at Taldykorgan Electric Grid Company (Zhetysu region) from 14 to 17 tenge; at Alatau Zharyk Kompaniyasy (Almaty and Almaty region) from 13 to 16 tenge; at Akmola REC (Akmola region, Astana, Kosshy) from 13.5 to 16.5 tenge; at Kokshetau Energy (North Kazakhstan and Akmola regions) from 12 to 15 tenge; at United Energy Service Company (East Kazakhstan and Abai regions) from 12 to 15 tenge; at Zhambyl Electric Networks (Zhambyl region) from 12 to 15 tenge; at West Kazakhstan REC (West Kazakhstan region) from 12 to 15 tenge; at Zhezkazgan REC (Ulytau and Karaganda regions) from 11 to 14 tenge; at Karagandy Zharyk (Karaganda region) from 10.5 to 13.5 tenge; at Karaganda REC (Karaganda region) from 11 to 14 tenge; at EPK-Forfait (Kostanay region) from 12 to 15 tenge; at EPK-Atica (Kostanay region) from 10 to 13 tenge; at Kyzylorda REC (Kyzylorda region) from 13 to 16 tenge; at Pavlodar REC (Pavlodar region) from 14 to 17 tenge; at Gorelektroset (Pavlodar region) from 11 to 14 tenge; at North Kazakhstan REC (North Kazakhstan region) from 12 to 15 tenge; at Ongtustik Zharyk Tranzit (Shymkent and Turkistan region) from 15 to 18 tenge; at Mangystau REC (Mangystau region) from 15 to 18 tenge; at Energosistema (Aktobe region) from 15.5 to 18.5 tenge; at Atyrau Zharyk (Atyrau region) from 13.5 to 16.5 tenge; at State Utility Enterprise "PHO Lisakovskgorkommunenergo" (Lisakovsk city) from 11 to 14 tenge; at State Utility Enterprise "Zhitikarakommunenergo" (Zhitikara district, Kostanay region) the new rate is 14 tenge, previously there was no preferential price.
It should be noted that these preferential prices are only part of the final tariff for households, which also includes transmission tariffs for RECs, the national grid tariff of KEGOC, balancing charges, capacity fees, and a sales markup. The increase in preferential prices is likely to lead to higher final tariffs if the regulator approves them. However, Astana-REC explained: "Astana-REC JSC has received a notification about a change in the purchase price of electrical energy from the single purchaser. The company is currently assessing the impact of this change on its activities in the energy supply sector. The possibility of applying for a change in the maximum price will be determined based on the results of the analysis. The company's further actions will be carried out in accordance with the requirements of the current legislation of the Republic of Kazakhstan, taking into account the results of the analysis." Thus, a sharp increase in tariffs for households due to the rise in preferential prices is not expected in the coming months, but the dynamics of the wholesale market will inevitably affect the cost of electricity in the future.