Energy Ministry seeks to update heating and hot water prices
The Ministry of Energy of Kyrgyzstan is suggesting a revision to heating and hot water tariffs in order to reduce subsidies and move towards self-sufficiency in the energy sector. The draft resolution, which is open for public discussion, proposes the introduction of a social standard for monthly thermal energy consumption for residential premises up to 80 square meters. This would involve an increase of 25 percent in the current tariff for heating energy, while the tariff for hot water supply would be equalized to the social norm.
For those exceeding the social norm, tariffs would be applied based on the cost of heat energy for each square meter of excess consumption. The proposal also includes simplifying the calculation of tariffs for hot water supply by setting them based on consumption norms and metering devices.
The aim of this initiative is to improve the energy sector’s performance indicators, promote self-sufficiency, introduce fair tariff setting practices, reduce subsidies from the state budget, and minimize cross-subsidies between different consumer groups.
The Ministry of Energy highlighted that the medium-term tariff policy for heat energy and hot water supply for 2021-2025 was approved in September 2021, with annual adjustments planned. Changes made in November 2023 increased tariffs for industrial and other consumers to cost level, while socially oriented tariffs for the population were maintained.
Current tariffs for heat supply enterprises vary, with costs ranging from 2,918.92 to 8,071.89 soms per gigacalorie of heat energy. The document states that household consumer tariffs are significantly lower than the actual cost, leading to the need for subsidies from the state budget.
Overall, the proposed revisions aim to create a more sustainable and equitable system for energy consumption in Kyrgyzstan.
