The Ministry of Energy of Kyrgyzstan has proposed a revision of the mechanism for forming tariffs for the purchase of electricity for distribution companies.
According to expected technical and economic indicators, the electricity deficit in the country may reach 3.8 billion kWh. The anticipated financial shortfall in the energy sector is about 4.6 billion soms. To cover this, the energy system will have to rely on imports.
The project proposes the introduction of a unified tariff for the purchase of electricity for all distribution companies. This tariff will be calculated based on the weighted average cost of electricity imported by the main supplier, taking into account all costs for its transmission through its networks. Thus, the cost of imported electricity will become the basis for forming the new tariff.
In addition, the document provides for an alternative mechanism in case electricity imports are halted. In such a situation, the tariff for the purchase of electricity for distribution companies will depend on the maximum tariff levels of renewable energy producers. If there is neither imported electricity nor generation from renewable sources, the annual costs of distribution companies will be determined according to the existing methodology.
The ministry is confident that the proposed innovations will allow for a more effective response to the electricity shortage and ensure the stability of the energy system. For the population, these measures are aimed at increasing the resilience of the energy system in conditions of deficit. Using the cost of imported energy as a benchmark for calculations should help energy companies cover actual expenses and guarantee stable electricity supplies.
