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Over two year of its operations, power distribution company has received TJS534 mln less than expected

In a report released at a news conference in Dushanbe,  an official from the Open Joint-Stock Company (OJSC) Power Distribution Networks revealed on February 13 that over two years of its operation, the company has received 534 million somonis (TJS) (equivalent to 52 million US dollars) lest than it was expected.

He, in particular, noted that some enterprises “systematically do not pay for electricity on time and in full.”

Thus, the Tajik Aluminum Company (TALCO) now owes 487 million somonis for electricity.  

Among incorrigible nonpayers are also residential customers – 1.5 billion somonis, and the Agency for Land Reclamation and Irrigation under the Government of Tajikistan – 460 million somonis.  

Total arears of all consumers reportedly amount to almost 3.7 billion somonis.  

Meanwhile, Barqi Tojik (Tajikistan’s national power utility company) head Mahmadumar Asozoda told reporters today that OJSCs Power Distribution Networks and Power Transmission Networks began their operations two years ago without any debts.

He further noted that Barqi Tojik will deal with all the arrears that have accumulated before that (before 2021).

Recall, OJSCs Power Distribution Networks Power Transmission Networks were established on the basis of the national power utility company in summer 2020  

The process of restructuring of Barqi Tojik began in 2012 and Barqi Tojik was expected to be divided into three independent companies in late 2018: (i) generation; (ii) transmission business; and (iii) distribution.

Barqi Tojik now operates just as power generation company.     

The main objective of the restructuring of Barqi Tojik is in ensuring transparency in the country’s energy system.

Tajikistan desperately needs to reform its energy sector.  The country’s power sector is comprised of the vertically integrated energy company, Barqi Tojik, three independent power producers (IPPs), and a concession in Gorno-Badakhshan Autonomous Region (GBAO) combining power generation and distribution.

Barqi Tojik is fully owned by the Government.  It owns and operates most of the electricity generating plants and is also responsible for electricity transmission, dispatch, and distribution services to around 8 million people in all regions of the country except for GBAO.

Two of the IPPs – Sangtuda-1 and Sangtuda-2 hydropower plants (HPPs) – were constructed with investments from Russian and Iranian state-owned companies, and supply electricity to Barqi Tojik under 20-year power purchase agreements (PPAs).  Third IPP – Roghun HPP – is under construction.

Pamir Energy Company (PEC) generates and supplies electricity to more than 200,000 people in GBAO under 25-year concession agreement.

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