The government has reportedly written off 261.6 million somoni (TJS) in uncollected funds from the Tajik Aluminum Company (TALCO) for electricity over the last six years. This is despite the fact that TALCO receives electricity at the lowest rates.
A report by the Ministry of Finance (MoF) on TALCO’s activities in 2010-2015 and the first half of 2016, in particular, notes that because of delayed payment for electricity received by TALCO, debts of Barqi Tojik (Tajikistan’s national integrated power company) have reached 468.4 million somoni by July 1, 2016.
According to the report, the company annually consumes 30 percent of the country’s electrical power.
In late 2009, by government’s decree a 50.9 million somoni electricity debt of TALCO was written off. The money was transferred to the company’s authorized fund. By the same degree the same amount of tax debts of Barqi Tojik was written off.
Two years later, the government reportedly wrote off 143.7 million somoni in TALCO’s electricity debts. This sum was also transferred to TALCO’s authorized fund.
In early 2014, the government reportedly wrote off 67 million somoni in TALCO’s electricity debts, according to the report.
TALCO now pays 7.20 dirams for one kWh of electricity in May-September and 11.80 dirams in October-April.
Meanwhile, current price of one kWh of electricity for residential consumers is 12.6 dirams.
Tajikistan is expected to raise electricity rates beginning on November 1 this year. The government decrees to set new electricity rates for all categories of consumers, except the Tajik Aluminum Company (TALCO).
The new price for residential customers is expected to be 14.65 dirams (16.2 percent increase compared to the current price of 1 kWh of electricity for residential customers).
