The Ministry of Energy is proposing a revision of the tariff for heating and hot water in Kyrgyzstan. A draft resolution has been put up for public discussion by the department with the aim of reducing subsidies, achieving self-sufficiency in the energy sector, and introducing a fair approach to tariff formation.
The project suggests introducing a social norm for monthly consumption of heat energy for residential premises up to 80 square meters and increasing the current tariff by 25 percent. The tariff for hot water supply would also be equated to the social norm. Citizens exceeding the social norm would be charged tariffs based on the cost of heat energy per square meter exceeded.
To simplify the calculation of tariffs for hot water supply, the project proposes establishing a tariff for heat energy in the form of hot water based on metering devices and consumption norms for all consumer groups.
The objectives of the project include improving the energy sector's performance indicators, promoting self-sufficiency, implementing a fair tariff formation approach, reducing state budget subsidies, and minimizing cross-subsidization between consumer categories.
The medium-term tariff policy for heat energy and hot water supply for 2021-2025 was approved in a previous resolution. It provides for annual adjustments of 10 percent for the population. Changes were made in November 2023, increasing tariffs for industrial and budgetary consumers to cost levels while maintaining socially oriented tariffs for the population.
The current costs of one gigacalorie of heat energy from various heat supply enterprises were also outlined in the document. The tariffs for domestic consumers are noted to be significantly below the actual costs, leading to the need for state budget subsidies and cross-subsidization between consumer groups. In 2023, 3.1 billion soms were allocated in subsidies to cover costs for supplying heat energy and hot water to the population.
