Senior representatives of Barqi Tojik (Tajik power utility company) have justified the decision to raise electricity rates by saying that company’s expenditures significantly exceed its revenues.
By Antimonopoly Agency’s instruction a working group has been set up to analyze the results of financial activities of Barqi Tojik in 2018 and its plans for 2019, Rustam Majidzoda, the head of the Barqi Tojik Main Finance Directorate, told reporters in Dushanbe on July 31.
According to him, the analysis has revealed that Barqi Tojik’s revenues are projected to stand at 3.5 billion somoni in 2019, while its expenditures are projected to stand at 4.1 percent this year.
“Therefore, the working group has proposed the government to raise electricity rates by 17 percent,” Majidzoda said.
He further noted that current cost price for one kWh of electricity, including return of investment, amounts to nearly 29 dirams. “Meanwhile, the current average price for electricity in Tajikistan is 20 dirams,” Majidzoda said.
First deputy head of Barqi Tojik, Mahmadumar Asozoda, for his part, noted that the cost price hike had resulted from increase in share of electricity generated by heat and power plants.
“In 2018, heat and power plants generated more than 1 billion kW h of electricity,” Asozoda said.
Speaking at the news conference, Barqi Tojik top manager Mirzo Ismoilzoda noted that the government compensates for vulnerable families 150 kWh of electricity during the period from April to September and 250 kWh during the period from October to March.
“Such families make up 20 percent of a total number of residential customers,” Barqi Tojik head said.
Recall, beginning on September 1, residential customers will pay for electricity at the rate of 22.66 dirams per one kWh of electricity.
It is to be noted that Tajikistan’s power utility company is now in a difficult financial state. As of January 1, 2019, Barqi Tojik’s total debts reportedly amounted to 23.1 billion somoni (equivalent to some 2.5 billion U.S. dollars).
In accordance with decree issued by the government on June 22 this year, residential customers will pay for electricity at the rate of 22.66 dirams (value added tax included) beginning on September 1 this year.
Electricity rates will rise for all categories of electricity consumers, with the exception of the Tajik Aluminum Company (TALCO). Thus, electricity rates for residential customers will rise nearly 17 percent.
Beginning on September 1, 2019, prices for one kWh of electricity will be 22.66 dirams for residential customers (nearly 17 percent increase), 55.14 dirams for industrial and non-industrial customers, and 22.66 dirams for federally funded institutions, including public utilities and sports complexes,
Electricity rates for pumping stations for mechanized irrigation and repair-and-production bases of the Agency for Land Reclamation and Irrigation under the Government of Tajikistan will rise to 7.86 dirams for the period from April 1 to September 30 and to 22.66 dirams for the period from October 1 to March 31. The price of one KWh of electricity for vertical drainage wells and land reclamation pumping stations will be raised to 7.87 dirams.
Electricity rates for electric boilers, hot water supply and heating system will rise to 136.62 dirams for non-federal sphere and to 40.37 dirams for federally funded institutions.
Beginning on September 1, 2019, the Tajik metallurgical plant will pay for one kWh of electricity 9.68 dirams during the period from April 1 to September 30 and 55.14 dirams during the period from October 1 to March 31.
Meanwhile, prices for the Tajik Aluminum Plant (TALCO), which is the largest electricity consumer in the country, will remain unchanged – 7.20 dirams for period from May 1 to September 30 and 11.80 dirams for the period from October 1 to April 30.
Tajikistan raises electricity rates practically every year. For the last time, Tajikistan raised electricity rates on November 1, 2017.
