Government • 20 December, 2018

From January 1, 2019, utility rates to be reduced in all regions of Kazakhstan — MNE

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At the press conference in the press center of the Government, Vice Minister of National Economy Serik Zhumangarin spoke about the work being done to reduce tariffs and enhance transparency of tariff setting under the instructions given by the Head of State at the Security Council Nov. 7, 2018.

Zhumangarin reported that since Nov. 12, 2018, the feedback with the population has been established in all regions, which resulted in 102 public receptions on problematic issues in the housing sector with the participation of the media, akimats, Atameken NCE, Nur Otan Party, public associations and other interested parties. About 3 thousand people took part in the work of these receptions.

Hotline telephones are organized for consumers who do not have the opportunity to attend public reception rooms.

“After considering received appeals and complaints, as well as in order to identify unjustifiably received income by monopolists and return them to consumers, 55 unscheduled inspections of monopolists have already been opened. Another 15 unscheduled inspections are to be opened,” said Zhumangarin.

According to the vice minister, as a result of the work done, in all regions a reduction in utility tariffs is expected: water supply, water drainage, electricity supply, heat supply and gas supply.

Heat supply

According to the ministry, as of Dec. 20, 2018, heat tariffs have already been reduced in three regions:

Akmola — by 36.8% (from 116.1 to 73.4 tenge / m²);

North Kazakhstan — by 1.1% (from 114.7 to 113.4 tenge / m²);

East Kazakhstan (Semey) — by 2.8% (from 70.1 to 68.2 tenge / m²).

In addition, from Jan. 1, 2019, it is projected to decrease tariffs in the remaining 14 regions from 2.2% in the Karaganda region, to 15.3% — in the Turkestan region. As a result, the savings of public funds for heat supply services will be about 6 billion tenge.

“From Jan. 1, 2019, under the marginal tariffs, we expected an increase in tariffs in all regions for all these five types of services (water supply, water disposal, power, heat and gas supply). After the work of the authorized and local executive bodies with natural monopolies, tariff increases from Jan. 1 will not only be prevented, but we expect tariff reductions,” said Zhumangarin.

According to the Ministry of Economic Development, from Jan. 1, 2018, heat tariffs in the Aktobe region are expected to decrease by 10% (from 129.25 to 116.33 tenge / m²). At the same time, in connection with the approval of a compensating tariff for the service of Aktobe CHP JSC for the production of thermal energy, an additional 10% reduction in the heat tariff is expected from Feb. 1, 2019 (from 116.33 to 104.7 tenge / m²) . Thus, in general, in 2019, the heat tariff for the population in the Aktobe region is expected to decrease by 19% (from 129.25 to 104.7 tenge / m²).

Water supply

As of Dec. 20, 2018, the water tariff for the population in the Zhambyl region has been reduced by 22% (from 52.3 to 40.8 tenge / m³).

In addition, from Jan. 1, 2019, tariffs are to decrease in the remaining 16 regions from 3% to 22.7%.

Water disposal

To date, the public tariff for water disposal in the Zhambyl region is reduced by 0.4% (from 16.4 to 16.3 tenge / m³). At the same time, Zhumangarin noted that in the Zhambyl region it is one of the lowest tariffs in the country.

In addition, from Jan. 1, 2019, tariffs are to decrease in the remaining 16 regions from 3% to 11.4% (from 54.07 to 47.91 tenge / m³).

“As a result, the savings of the population as a whole for water supply and wastewater services will be more than 2 billion tenge,” said Zhumangarin.

Gas supply

According to the Ministry of National Economy, from Jan. 1, 2019, the forecasted price reduction will be from 3.3% to 17.5%. At the same time, gas prices in Almaty will reduce by 12% (from 29.8 to 26.2 tenge / m³), in Shymkent and the Turkestan region — 6% (from 30.7 to 28.9 tenge / m³), in Zhambyl region — 6% (from 24.3 to 22.8 tenge / m³). As a result, the savings of public funds for gas supply services will be about 5 billion tenge.

Power supply

“Just yesterday, the Ministry of Energy published information on price reductions at the stations. Thanks to the work done, it became possible to reduce prices along the chain for final power supply services. Since the share of stations in retail electricity prices reaches 60%,” said Zhumangarin.

The Ministry of National Economy has carried out the work to reduce electricity transmission tariffs. In addition, Zhumangarin noted that the tariff of KEGOK JSC, carrying out the transmission of electrical energy through the networks of the interregional level, within the limit of the five-year tariff, approved in 2015, was to grow from Jan. 1 by 12% (from 2.4 to 2.8 tenge / kWh). At the same time, the Committee on Regulation of Natural Monopolies, Protection of Competition and Consumer Rights of the Ministry of National Economy, together with KEGOC, made a decision to prevent the tariff growth and maintain it at the current level — 2.4 tg / kWh

Thus, from Jan. 1, 2019, the decline in electricity prices in all regions of the Republic from Jan. 1, 2019, is expected. As of Dec. 20, 2018, electricity prices in  Zhambyl region have already decreased by 3.6% (from 13.35 to 12.86 tenge / kWh) and Kyzylorda — by 4% (from 14.51 to 13.93 tenge / kWh).

The forecast decline in retail prices for the population will be from 1.7% to 22.32%. As a result, the savings of public funds for electricity supply services will be about 7.8 billion tenge.

At the same time, retail prices of electric energy for legal entities in eight regions are expected to decrease from 1.7% to 18%, which, according to the vice minister, this will have a healthy effect for business.

Savings of consumers for electricity services will be more than 14.5 billion tenge.

“I want to note that the aforementioned reduction in tariffs will eventually lead to a reduction in the size of the average bill for public utilities (water, sewage, electricity, heat and gas) per month,” said Zhumangarin.

So, for example, a reduction in the average check of a family of three living in a 2-room apartment of 60 m² will be following. In Almaty, on average, 14,483 tenge is paid a month for utilities. From Jan. 1, 2019, the total fee will average 13,128 tenge, or decrease by 1,353 tenge. Thus, the annual savings on utility bills will average about 9,700 tenge. In Astana, the average utility fee is 10,666 tenge per month. From Jan. 1, 2019, the fee will average 9,604 tenge or decrease by 1,062 tenge. Annual savings on utility bills will average about 9,000 tenge.

“Today we state that based on the criticism that was addressed to us and our colleagues, certain conclusions have been made, the corresponding work with natural monopolies has been done, and from Jan. 1, 2019, throughout the country we expect a reduction in tariffs for water supply services, water disposal, power supply, heat supply and gas supply,” Zhumangarin summarized.

In addition, Vice Minister Zhumangarin noted that local executive bodies are working to reduce tariffs for apartment owners' cooperative services, garbage collection, elevator services and bus transportation. Thus, in the regions it is planned to reduce tariffs for services from 2.2% in Pavlodar region to 20% in Zhambyl region. For garbage collection services from 2.1% in the Turkestan region to 24.7% in the Pavlodar region. For lift services from 3% to 50%. For bus transportation, it is planned to reduce tariffs in the Turkestan region by 10%.

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