ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of November 20, 2014 No. 660

About approval of Medium-term tariff policy of the Kyrgyz Republic on electrical and heat energy for 2014-2017

For the purpose of ensuring sustainable development, stable and reliable functioning of energy industry of the Kyrgyz Republic, covering of deficit of the electric power and ensuring energy security of the Kyrgyz Republic, according to the laws of the Kyrgyz Republic "About power", "About power industry", articles 10 and 17 of the constitutional Law of the Kyrgyz Republic "About the Government of the Kyrgyz Republic" the Government of the Kyrgyz Republic decides:

1. Approve Medium-term tariff policy of the Kyrgyz Republic:

- on electrical energy for 2014-2017 according to appendix 1;

- on heat energy for 2014-2017 according to appendix 2.

2. To the state agency on regulation of fuel and energy complex under the Government of the Kyrgyz Republic in accordance with the established procedure to approve rates for electrical and heat energy for final consumers.

3. To the ministry of social development of the Kyrgyz Republic, Social fund of the Kyrgyz Republic together with the Ministry of Finance of the Kyrgyz Republic, the Ministry of Energy and Industry of the Kyrgyz Republic and local government bodies in accordance with the established procedure to work the mechanisms of social protection of lower-income strata connected with realization of Medium-term tariff policy of the Kyrgyz Republic on electrical and heat energy for 2014-2017.

4. Declare invalid the order of the Government of the Kyrgyz Republic "About medium-term tariff policy on electrical and heat energy for 2014-2017" of June 17, 2014 No. 336.

5. To impose control of execution of this resolution on department of the industry, fuel and energy complex and subsurface use of Government office of the Kyrgyz Republic.

6. This resolution becomes effective after 15 days from the date of official publication.

Appendix 1

Approved by the Order of the Government of the Kyrgyz Republic of November 20, 2014 No. 660

Medium-term tariff policy of the Kyrgyz Republic on electrical energy for 2014-2017

1. Introduction

This Medium-term tariff policy of the Kyrgyz Republic on electrical energy for 2014-2017 (further - SSTP) is aimed at providing financial stability of energy industry of the country and stable ensuring power supply of consumers by means of improvement of condition of infrastructure of power supply system of the republic.

Main goals of SSTP are introduction of the principles of self-sufficiency of the energy sector, step-by-step elimination of cross subsidies in the field of tariff setting, and also annual improvement of the main indicators of activities of the energy sector in the conditions of the deficit of electrical energy connected with decrease in amounts of development and deliveries of electrical energy on import.

SSTP assumes establishment of rates for electrical energy for the medium-term period, taking into account and without import when internal opportunities of domestic power system allow to provide requirements of the domestic market with electrical energy.

Application of electricity tariffs will stimulate consumers on effective and rational electricity use, implementation of energy conservation features, and also use of alternative energy sources for the purposes of heating. In this direction within SSTP the guaranteed monthly amount of consumption of electrical energy for the population is established.

2. General principles

This SSTP is based on the following principles:

- reflection in rates of all-in cost of production, transfer and distribution of electrical energy, including production costs and maintenance, compensations of capital costs, investment attraction and obligations on return of means;

- provision of equal rates and services for all consumers of identical group with identical characteristics of consumption serviced by one distributing company;

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