The Ministry of Energy proposes to change the electricity purchase tariff for distribution companies

Евгения Комарова Economy
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The Ministry of Energy of Kyrgyzstan has initiated a review of the methodology for calculating electricity purchase tariffs for distribution companies. These changes are driven by a shortage of electricity and rising import costs, which create a significant financial gap in the energy sector. A draft of the amendments to the legislation has been published for public discussion.

Main Proposals

It is proposed to establish a unified tariff for the purchase of electricity for all distribution companies. This tariff will be determined based on the average cost of imported electricity provided by the main supplier, taking into account the costs of transmitting electrical energy through its networks.

Additionally, the document proposes a mechanism for revising the tariff in the event of a cessation of electricity imports. In this case, tariffs for distribution companies will be set at the level of the marginal tariff established for renewable energy producers.

If both electricity imports and supplies from renewable sources are absent, the calculation of the total annual cost for each distribution enterprise will be carried out using a different methodology.

Goals of the Changes

Currently, methodologies for calculating conditional units of electrical networks for distribution companies and the calculation of a unified specific amount of costs for operation, maintenance, and repair of a conditional unit of electrical networks are used.

The current rules define tariffs for purchasing electricity from the main supplier - JSC "NES Kyrgyzstan" - and apply to enterprises distributing electricity volumes of up to 1 billion kWh.

However, with the increase in electricity imports, there has arisen a need to revise the current tariff system. The justification states that electricity imports from other countries have led to a cash deficit in the energy system.

According to the approved planned technical and economic indicators of energy companies for 2025, the electricity deficit in the country is about 3.8 billion kWh, while the expected financial deficit in the energy sector is 4.6 billion soms.

It is expected that the proposed changes will help stabilize the financial situation of energy companies and ensure coverage of expenses arising from electricity imports.

By the end of 2025, electricity consumption in the republic is expected to reach 19 billion 94.7 million kWh, which is 859.2 million kWh (or 4.5%) more than in 2024.

At the same time, 15.4 billion kWh of electricity was generated, of which:

As the demand for electricity exceeds its production, imports are necessary. Last year, Kyrgyzstan purchased 3.8 billion kWh of electricity from neighboring countries.
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