The Government of Tajikistan has decided to postpone the increase in tariffs for electricity at least until the end of this year.
The Anti-crisis Plan adopted by the Government, in particular, provides for postponing the increase in tariffs for utilities (electricity, heat and water), freight transportation, medical and educational services until the end of 2022.
For the last time, the government raised electricity rates on September 1, 2019. Electricity rates rose for all categories of electricity consumers, with the exception of the Tajik Aluminum Company (TALCO). Thus, electricity rates for residential customers rose nearly 17 percent.
Tajik authorities have justified their decision to raise electricity rates by saying that if they fail to raise rates gradually, it won't be possible to recoup the investments the government is making to build hydroelectric stations and power transmission lines.
Besides, the authorities justified their decision to raise electricity rates by recommendations of international financial institutions.
In 2020, the government refrained from raising utility (water and electricity supplies) and public transport rates due to the coronavirus pandemic.
In March last year, a working group was reportedly set up to review the electricity rates. The working group members reportedly include representatives of relevant ministries and agencies.
Current prices for 1 kWh of electricity in Tajikistan are 22.66 diram for residential customers, 55.14 diram for industrial and non-industrial customers, and 22.66 diram 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 rose to 7.86 diram per 1 kWh for the period from April 1 to September 30 and to 22.66 diram per 1 kWh 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 was raised to 7.87 diram.
The Tajik metallurgical plant currently pays 9.68 diram per 1 kWh during the period from April 1 to September 30 and 55.14 diram per 1 kWh during the period from October 1 to March 31.
Meanwhile, prices for TALCO, which is the largest electricity consumer in the country, remains unchanged – 7.20 diram for period from May 1 to September 30 and 11.80 diram for the period from October 1 to April 30.
In 2019, customer spending on electricity in Tajikistan was the highest in the Europe and Central Asia (ECA) region. Residents of Tajikistan reportedly spent on electricity on average nearly one-fifth of their monthly incomes.
Residential customers in Dushanbe reportedly spent on average up to 15 percent of their monthly incomes on electricity in winter time in 2019.
In summer time, residential customers in rural areas and Dushanbe in 2019 spent on electricity on average 14 and 10 percent of their monthly incomes, respectively.
Barqi Tojik, however, states on each rise in electricity prices in the country that electricity rates in Tajikistan are the lowest within the CIS area.
