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Commercial losses in Tajikistan’s power system exceed 22 percent of the country’s power bills

Last year, more than 23 percent of electricity was lost during its generation, transmission and distribution.  

As official statistical data show, losses in the generation and transmission of electricity are comparatively insignificant and are of a technical nature. The vast majority of energy is lost during its distribution to consumers, and here the losses are mainly of a commercial nature (theft).  

Note that three independent companies, established on the basis of Barqi Tojik (Tajikistan’s national power utility company), are now engaged in management of the country’s power system. 

OJSCs Power Distribution Networks and Power Transmission Networks were established on the basis of the national power utility company (Barqi Tojik) 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 a power generation company.    

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

Last year, losses in the generation and transmission of electricity reportedly amounted to 0.4 percent and 3.5 percent, respectively.  Losses in the distribution of electricity last year reportedly amounted to 22.4 percent of the country’s power bills, or more than 3.92 billion kWh of electric power.

Thus, average losses in the country’s power system amount to 23.3 percent.  

According to data from Power Distribution Networks, an average price of 1 kWh of electricity last year amounted to 26.66 diram.

Therefore, it can be assumed that a total cost of electric power lost last year amounted to more than 1 billon somonis (equivalent to more than 98 million US dollars).

And this, by the way, is 92 percent of proceeds received by Tajikistan last year from exporting electric power (106 million US dollars). 

Commercial losses are faced by power distribution companies and technical losses are also losses that occur within the distribution network due to the cables, overhead lines, transformers and other substation equipment that are used to transfer electricity.

Commercial losses means the maximum allowable percentage of electricity generated that is not correctly metered, billed and revenue collected.

The technical losses are due to energy dissipated in the conductors, equipment used for transmission line, transformer, sub- transmission line and distribution line and magnetic losses in transformers.

Recall, Power Distribution Networks has found “dead souls” (non-existent electricity consumers) in the country’s power system.  The company notes that “dead souls” create difficulties for proper operation of the billing system. 

“In previous years it was considered that electricity in large quantities was consumed by residential customers that does not correspond to reality,” OJSC Power Distribution Networks says, citing the billing program analysis.  

In order to reduce the rate of electricity losses, non-existent consumers were introduced to program that still creates difficulties for its proper functioning

“In previous years it was considered that electricity in large quantities was consumed by residential customers that does not correspond to reality,” Power Distribution Networks says, citing the billing program analysis.  

In order to reduce the rate of electricity losses, non-existent consumers were introduced to the program that still creates difficulties for its proper functioning.

In his address to a joint meeting of both chamber of parliament, Tajik President Emomali Rahmon noted on December 23 last year that 10.7 billion somonis (TJS) have been spent for restoration and renovation of the country's electricity grids during the independence period.

“However, the electricity loss situation is still concerning as it was 20.4% in ten months of this year,” Rahmon noted on December 23.

In this regard, the Ministry of Energy and Water Resources and the Joint-Stock Company (JSC) Electricity Distribution Company have reportedly been mandated to ensure high-quality and timely implementation of the TJS 2.4 billion project on electricity loss reduction and install more than 800,000 billing meters in various districts and cities of the country within the identified time-frame.

“The Ministry of Energy and Water Resources is mandated to work with the line companies to establish a unified and centralized billing system, install smart meters, and thereby reduce electricity losses to 9%t by the end of 2025, ensure the full collection of electricity fees and effective use of existing resources,” said the head of state.  “I also would like to urge our noble people to follow good culture of electricity consumption and make efforts to save it by applying energy efficient equipment and minimizing the electricity loss.”

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