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Kazakhstan

Electricity Sector Regulation

The Agency for the Regulation of Natural Monopolies (AREM) is responsible for regulation of generation, wholesale electricity market transactions and transmission. The Committee on Support of Competition (CSC) under the Ministry of Industry and Trade became responsible for most retail and distribution regulation in early 2005.

Tariffs

Generation tariffs are determined by the Kazakhstan Wholesale Electricity Market (KOREM), while transmission tariffs are regulated by AREM. Retail tariffs are set by the CSC.

Generation Tariff:
 varies with market conditions
Transmission Tariff:
 varies by distance upto 600 km, $0.0039 per kVh over 600 km.
Retail Tariff:
 varies by location but total retail tariff ranges from $0.032-$0.035 per kWh in Astana

Fuel Mix

Coal:
 70.0%
Hydroelectric:
 15.2%
Natural Gas:
 10.6%
Oil:
 4.2%

Industry Structure

The sector is mostly unbundled into generation, transmission, and distribution functions, although these functions remain bundled in areas less amenable to robust competition. Generation, distribution, and retail services are largely privately owned. Transmission is owned and managed by the Government through the Kazakhstan Electricity Grid Operating Company (KEGOC).

Electricity (2003 data)

Production:
 66.8 TWh
Consumption:
 62.2 TWh
Trade:
 5 TWh (export) and 2.5 TWh (import)

More Information

See Chapter VI (Kazakhstan) of the Electricity Sectors in CAREC Member Countries: A Diagnostic Review of Regulatory Approaches and Challenges. [ PDF ]

Visit: www.adb.org/Kazakhstan/


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