At a press conference at AKIpress, Biynazar Berdikeev, representing the company "ESM-SI," announced that the Ministry of Energy intends to "forcefully sell or bankrupt electricity distribution companies."
These words were supported by other sector representatives who also expressed concerns about the potential monopolization of the industry.
The main cause for concern was the discussion of the draft order from the Ministry of Energy "On Certain Issues in the Electricity Sector for Distribution Enterprises," which was presented on September 12, 2022, and put up for public discussion on March 10, 2026.
The draft order establishes a new "import tariff" for private distribution companies for the purchase of electricity.Instead of individually justified tariffs approved in April 2025, a price dependent on the weighted average cost of imports is expected to be introduced, which has drawn criticism from distribution companies. Moreover, information about the cost of electricity imports is classified as state secret.
Berdikeev emphasizes that companies are essentially being offered a choice: either sell their assets to the state (JSC "NESC") at an unfavorable price or operate under a tariff that will lead to bankruptcy.
To buy out the networks, around 5 billion soms will be required, which will create new debt for the energy sector and will be paid from the state budget.
It is important to note that concentrating all regulatory and control functions in one agency threatens transparency and competition in the industry, which contradicts the principles of the common market of the EAEU planned for 2027. The main ideas of the EAEU are based on market mechanisms and fair competition.
The proposed changes could also lead to the loss of the private sector and a decrease in private investments. The law "On Electricity" defines the creation of a competitive environment as one of its goals, which also implies the development of the private sector and attracting investments.
Considering that President Sadyr Japarov is actively implementing measures to support business in Kyrgyzstan aimed at reducing pressure from authorities and improving the investment climate, the actions of the Ministry of Energy are surprising to participants in the energy sector.
Electricity distribution companies insist on the need to suspend the implementation of the "import tariff" until an independent examination is conducted and to ensure the independence of the regulator (the Department of Energy and Industry) and the State Energy Inspection, excluding them from the subordination of the Ministry of Energy.
