According to reports from finprom.kz, paid services in Kazakhstan saw a 12.8% increase over the past year. The analysis primarily focused on essential services for the population, including utilities and mobile communication.
The price of wastewater services surged by 33.9% in the last year, surpassing the growth rate of any other utility service by more than 2.5 times. Similar trends were observed in various utility services:
- Central heating prices went up by 30.9%,
- Cold water prices increased by 30.8%,
- Garbage collection costs rose by 30.7%,
- Hot water prices saw a 29.4% hike,
- Electricity rates went up by 19.9%.
In contrast, mobile communication services experienced a relatively lower growth rate compared to the sector average, with an increase of 12.4% over the year.
Analysts attribute the price increases to necessary investments in infrastructure renewal, reducing wear and tear, mitigating risks, and introducing new capacities. The state project "Tariff in Exchange for Investments" has been effective since last year, enabling utility companies to adjust prices accordingly.
In the January-December 2023 period, investments in the power supply, gas supply, steam, and air conditioning sector escalated by 56.3% year-on-year to 1.2 trillion tenge. Similarly, investments in the water supply, sewage system, waste collection, and distribution sector rose by 23.6% to 598.6 billion tenge.
It is highlighted that the communication sector mainly relies on business funds for investments, while communal services receive a substantial portion from public funds, indicating citizen contributions through tariff increases and taxes. The significant investments required for the active implementation of the 5G network in Kazakhstan drive the country's digitalization and economic development.
The rise in investments coincides with an enhancement in service quality. Additionally, the analysis indicates that communication service expenses constitute a small portion of total expenditures for the population, accounting for 3.1% in the fourth quarter of 2023. In comparison, regulated utility services made up between 4.3% and over 6% of consumer spending during the same period, with food expenses comprising almost half of all consumer expenditures, precisely 47%.
Moreover, the long-term trend shows that communication expenses' share in total household expenditures has consistently been minor, with a slight decrease observed, especially as other services faced more significant price increases. The percentage has typically fluctuated within a narrow range, from 3.1% to 3.9%.
