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Minister of Energy concerned about possible accidents due to ownerless power grids

by April 5, 2017 General

Minister of Energy Kanat Bozumbayev reported that ownerless power grids could cause accidents.

In a number of regions there are so-called ownerless grids that are not serviced by anyone or serviced badly. This threatens the electricity supply to consumers connected to these grids. According to the latest data of local executive bodies, the length of such grids reaches 2 110 kilometers and there are 631 ownerless transformer substations. If such grids are not transferred to the power managing organizations, in the near future these grids may become the cause of emergencies, one of the reasons for deteriorating quality of electricity supply, and occurring accidents, � this was reported by Kanat Bozumbayev at a plenary session of the Majilis of the Parliament.

According to him, this issue has turned into a long-playing problem. In his opinion, its solution is reduced to the simple transfer of such grids to the management of regional electric companies (REC), but unfortunately, current legislation lacks such a mechanism.

On the one hand, RECs are interested in receiving such grids for management due to the fact that often their service lies on their shoulders anyway. Akims still work to ensure that they are serviced. But on the other hand, RECs lack funds for covering expenses for the resulting tax payments when receiving ownerless grids, � the Minister clarified.

Kanat Bozumbayev reported that in connection to this, the draft Law amending the legislative acts on electricity issues provides for a mechanism for transferring electric grids recognized as ownerless by introducing appropriate changes to the Law On State Property. In addition, it is proposed to free electricity management companies from paying corporate income tax, property tax, arising from receiving ownerless electrical grids, by adding to the Tax Code. This position is supported by the relevant decision of the National Budget Commission, the Minister said.

Transfer of ownerless electric grids to the management of energy managing organizations that have qualified specialists and appropriate material and technical equipment will increase the reliability of consumers’ electricity supply and resolve the issue of eliminating ownerless grids, � the Minister concluded.

Source: Government of the Republic of Kazakhstan