DUSHANBE, February 21, 2011, Asia-Plus — Rise in electricity prices may lead to increase in cost Tajik aluminum, Tajik Aluminum Company (TALCO) that operates Tajik aluminum smelter said.
According to the TALCO press service, the company has paid more than 1.5 billion somoni (equivalent to more than 336 million U.S. dollars) for electrical power over the past five years.
“At the same time, electricity prices for the company have risen more than 300 percent over the report period. Further rise in electricity rates may become critical for TALCO against the backcloth of global crisis manifestations and unstable economies of partner countries,” said the source, “Regulation of electricity rates is one of the main internal instruments to provide profitability and competitiveness of Tajik aluminum in the world market.”
TALCO provides more than 70 percent of receipts of Barqi Tojik (the state-owned utility responsible for generation, transmission, and distribution of electricity in Tajikistan), consuming little more than 30 percent of the country’s electrical power, according to TALCO press service. “Barqi Tojik, however, raises electricity prices annually, justifying that by the necessity to implement the program of strategy of reforms in the energy sector to support the economic development of the country, worked out with assistance from international financial institutions.”
The TALCO representatives also stress that taking into account the significance of the aluminum smelter for the country’s economy it would be right, and “more over, vital to provide the most favorable conditions for Tajik aluminum giant through developing and introducing schemes of cooperation between metallurgical and energy sectors of the country that would be adapted to domestic and international markets.”
An agreement between TALCO and Barqi Tojik on electricity supply on terms of keeping stable long-term rates would be the first step towards this.
“Thus, the U.S. Alcoa Inc (Aluminum Company of America) purchases electrical power the rate of at 3.00 cents per one kWh, while for other customers the electricity price is 20.00 cents. The Russian government stipulates cheap electricity rates for Russia’s aluminum industry,” TALCO notes.
In Tajikistan, current prices are 0.09 somoni for residential customers, 0.213 somoni for industrial enterprises, except the Tajik Aluminum Company (current electricity price for TALCO is 0.082 somoni), 0.085 somoni for federally funded institutions and public utilities industries, and 0.057 somoni for pump stations and electric transport.
It is to be noted that current international price of one ton aluminum is 2,568 U.S. dollars, which is 104.00 U.S. dollars more as compared with the beginning of the year.
