Energy Ministry proposes to raise heating rates starting in June 2025
The Ministry of Energy of Kyrgyzstan has put forward a draft resolution titled “Approval of the medium-term tariff policy for heat energy and hot water supply for 2025-2030” for discussion. This draft aims to address the current financial challenges faced by the sector and ensure sustainability in the provision of energy services.
The background document highlights that in the previous medium-term tariff policy (2021-2025), there was an annual adjustment of tariffs for the population by 25 percent. Despite this, tariffs for industrial, budget-funded, and other consumers were increased to the cost level in November 2023, while socially oriented tariffs for the population were retained.
Currently, the tariffs for the population stand at 1,560 soms per 1 gigacalorie for heating purposes, 1,560 soms per 1 gigacalorie for hot water supply, 108.07 soms per 1 cubic meter for hot water supply based on metering devices, and 518.74 soms per month for hot water supply per person. These tariffs apply to all heat supply enterprises except for local private boiler houses.
In the previous year, the sector recorded a cash deficit of 6.1 billion soms with revenues of 11.2 billion and expenses of 17.3 billion. To cover these costs, subsidies of 4.3 billion soms were allocated to heat supply enterprises in 2024. The Ministry of Energy recognizes that the current tariffs do not cover the production and distribution costs of heat energy, leading to a high level of equipment wear. Therefore, it is proposed to increase tariffs annually starting from June 1.
The new draft document suggests a gradual increase in tariffs for the population with housing up to 80 square meters for heating and hot water supply. The increase will be 25 percent from June 1, 2025, 50 percent from June 1, 2026, 75 percent from June 1, 2027, and setting tariffs at cost level from 2028-2030. For the population with housing over 80 square meters and for industrial, budget-funded, and other consumers, tariffs for heating and hot water supply will be set at the cost level.
This proposed tariff policy aims to address the financial challenges faced by the sector, ensure the sustainability of energy services, and cover the costs of production and distribution of heat energy effectively. The Ministry of Energy seeks public feedback and input on the draft resolution to make informed decisions for the future of heat energy and hot water supply in Kyrgyzstan.
