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Ministry of Energy proposes to increase heat tariffs without restrictions

The Ministry of Energy of Kyrgyzstan proposes to change the methodology for calculating electricity tariffs. The document has been submitted for public discussion.

The ministry notes that the law on electrical energy industry stipulates that prices should reflect the full cost of production, transmission and distribution of heat or electric energy, including production and maintenance costs, reimbursement of capital costs, attraction of investments and interest rate of return. But the existing heat energy tariff methodology stipulates that when setting tariffs, the annual increase for any category of consumers should not exceed 25 percent.

«In this regard, in order to bring the price (tariff) to full value, it is proposed to recognize the annual threshold of 25 percent for tariff increase as invalid. This will allow to ensure sustainable development, stable and reliable functioning of the electric power industry of Kyrgyzstan, as well as to bring regulatory legal acts in line with the legislation of the Republic,» the background statement says.

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