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RESOLUTION OF THE CABINET OF MINISTERS OF THE KYRGYZ REPUBLIC

of September 30, 2021 No. 193

About approval of Medium-term tariff policy of the Kyrgyz Republic on heat energy and hot water supply for 2021-2025

(as amended on 29-05-2024)

For the purpose of stable and reliable functioning of energy industry and ensuring energy security of the Kyrgyz Republic, according to article 21 of the Law of the Kyrgyz Republic "About power industry", article 6 of the Law of the Kyrgyz Republic "About power", being guided by articles 10 and 17 of the constitutional Law of the Kyrgyz Republic "About the Government of the Kyrgyz Republic", the Cabinet of Ministers of the Kyrgyz Republic decides:

1. Approve Medium-term tariff policy of the Kyrgyz Republic on heat energy and hot water supply for 2021-2025 according to appendix.

2. To the Ministry of Energy and Industry of the Kyrgyz Republic in accordance with the established procedure to approve rates for heat energy and hot water supply for final consumers.

3. Declare invalid the order of the Government of the Kyrgyz Republic "About approval of Medium-term tariff policy of the Kyrgyz Republic on electrical and heat energy for 2020-2022" of March 27, 2020 No. 188.

4. To impose control of execution of this resolution on department of the industry, fuel and energy complex and subsurface use of Administration of the President of the Kyrgyz Republic.

5. This resolution becomes effective after fifteen days from the date of official publication.

Chairman of the Cabinet of Ministers of the Kyrgyz Republic

U. Maripov

Appendix

Medium-term tariff policy of the Kyrgyz Republic on heat energy and hot water supply for 2021-2025

Chapter 1. Introduction

This Medium-term tariff policy of the Kyrgyz Republic on heat energy and hot water supply for 2021-2025 (further - SSTP) is aimed at providing regular supply of consumers with heat energy and hot water in the conditions of crisis in energy industry of the country.

The purposes of this SSTP are gradual introduction of the principles of self-sufficiency of heat power industry and step-by-step elimination of cross subsidies in case of tariff setting.

SSTP assumes achievement in the medium-term period of covering rates for heat energy of cost and, further, their annual adjustment on the level of the actual inflation for previous year.

In the conditions of the permanent growth of cost of the imported fuel resources (coal, gas, fuel oil) of one of the main objectives of SSTP timely change of rates for heat energy and hot water according to the rates given in appendix to this SSTP is. Such approach will allow to bring gradually rates for heat energy and hot water to their actual cost that as a result will provide financial stability of the heatsupplying companies of the heat power sector.

Chapter 2. General principles

This SSTP is based on the following principles:

- rates shall cover all cost of the heatsupplying companies for production, transfer, distribution and sale of heat energy, and also debt maintenance costs, capital investments and others;

- growth rates of rates shall be gradual and not cause in consumers of sudden economic difficulties;

- cross subsidizing between consumers of electrical and heat energy shall be eliminated gradually. At the same time during the medium-term period till 2025 it will not be possible to exclude completely subsidies in power system as it will cause the excessive growth of rate for heat energy for the population.

Chapter 3. Rates

Rates for heat energy for the population

For residential customers (population) the social norm of monthly consumption of heat energy established for total area of premises by amount to 80 sq.m is provided.

With total area of premises in amount over 80 sq.m rates for heat energy will be applied to residential customers (population) at the level of the cost of heat energy on each sq.m of excess from social norm.

The paragraph the fourth ceased to be valid according to the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of 29.05.2024 No. 287

The paragraph the fifth ceased to be valid according to the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of 29.05.2024 No. 287.

To the population receiving heat energy on the purpose of heating and hot water supply from boiler rooms of the municipal company "Bishkekteploenergo" and the state company "Kyrgyzteploenergo" under the Ministry of Energy and Industry of the Kyrgyz Republic, and also other heatsupplying organizations (except for the local private heating boiler rooms performing heat supply of the multi-storey houses which are again put into operation), rates for heat energy and hot water will be established in the same size, as for the population receiving heat energy from Bishkekteploset open joint stock company and structural divisions of Power plants open joint stock company.

Rates for heat energy for the industry and other consumers

Rates for heat energy will be applied to industrial and other consumers at the level of the cost of heat energy.

Rates for the budget consumers.

Rates for heat energy will be applied to the budget consumers at the level of the cost of heat energy since January 1, 2024.

Rates for hot water

For residential customers of hot water the gradual annual growth of rates is also provided

At the same time, as the most part of the population has no metering devices of hot water, payment for hot water according to the standard rate, at the rate of consumption on each person living in premises - m3 4,8 in month is provided.

The paragraph the thirteenth ceased to be valid according to the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of 29.05.2024 No. 287 

Rates for hot water will be applied to industrial and other consumers at the level of the cost of heat energy.

Rates for hot water will be applied to the budget consumers at the level of the cost of heat energy since January 1, 2024.

The rate for the heatsupplying organizations for heat energy in the form of hot water on metering devices and on consumption regulation for all customer groups is established individually, proceeding from rate for heat energy in the form of hot water.

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