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Wednesday, November 13th, 2019

Ministry of Energy: Implementation of the Plan of the Nation allows improving Kazakhstan’s energy system reliability

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During the briefing at the Government press center, Deputy Minister of Energy Bakytzhan Dzhaksaliyev reported on the planned changes in the energy sector within the framework of implementing the Plan of the Nation 100 concrete steps.

B. Dzhaksaliyev reported that during the implementation of the Plan of the Nation, amendments were made to the legislation on the electric power industry, providing for a number of innovations.

In particular, a new tariff policy will start operating, which will stimulate attraction of investments in the industry. Also, conditions will be created for the consolidation of regional grid companies, which will improve the reliability of electricity supply, reduce the cost of electricity transmission in the regions and its cost to end users.

As we know, with the liberalization and privatization of the country’s energy complex, a large number of electricity transmission organizations have emerged. Today there are about 160 of them, but in fact they are all engaged in the same activity – transmission of electricity, B. Dzhaksaliyev said.

He noted that mechanisms of stimulating consolidation will include exemption of energy transmission organizations (ETOs) from CIT and property tax when taking over ownerless electric networks, as well as lifting legal prohibitions in the sphere of natural monopolies in case of their consolidation, etc.

At the same time, organizations will be presented with requirements, including the presence of dispatch process management, the availability of services staffed with trained and certified personnel, the existence of contracts with the system operator for the provision of system services, and the presence of automated commercial accounting systems.

This will reduce the number of ETOs 30% by 2022, from 160 to 110, and increase the reliability of power supply, solve the problem of ownerless electrical networks, B. Dzhaksaliyev said.

Source: Government of the Republic of Kazakhstan

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