The total debt of the Tajik Aluminum Company (TALCO) for electricity has reportedly reached 492.5 million somonis (over US$46 million) by July 1, 2024.
Muhammad Ghulomov, the head of the Electricity Supervision Department at the Power Distribution Networks, told reporters in Dushanbe on August 6 that TALCO's electricity debt has increased by 40% over the first six months of this year, from 351.7 million somonis to 492.5 million somonis.
“In July, following certain activities, the company paid 90 million somonis," Ghulomov said. He noted that the parties have agreed on a contract, which requires the aluminum company to make monthly payments of 35 million somonis. This amount reportedly includes both the accumulated debt and the current electricity consumption by the aluminum producer (averaging 25 million somonis per month).
Ghulomov highlighted that currently, TALCO receives an average of 5.7 million kilowatt-hours of electricity per day, accounting for almost 10% of the country's electricity production.
The aluminum company receives electricity at the lowest rate in the country—15.57 dirams per kilowatt-hour. In comparison, residential customers pay 30.75 dirams, and other industrial enterprises pay 60.65 dirams per kilowatt-hour.
Ghulomov did not comment on the details of the company's lawsuit to recover US$37 million from TALCO but promised Asia Plus’s reporters that he would provide details individually in the coming days.
Recall, the Open Joint Stock Company (OJSC) Power Distribution Networks has filed a lawsuit in the country’s High Economic Court of Tajikistan seeking to recover a debt of US$37 million from the TALCO.
Rustam Mirzozoda, Chairman of the High Economic Court of the Republic of Tajikistan, announced at a news conference in Dushanbe on August 1 that the claim is based on TALCO's failure to pay for electricity received in this amount.
Disputes between Barqi Tojik (Tajikistan’s state-run power utility company) and TALCO over unpaid electricity bills have been ongoing since early 2020. In the summer of that year, "Barqi Tojik" management reported at a press conference that TALCO's electricity debt amounted to 415 million somonis ($39.2 million at the exchange rate set by the National Bank for that period).
At that time, TALCO issued a statement refuting the holding company's claim, asserting that "for the past five years, payment for electricity has not only been made in full but has also exceeded the billed amounts."
However, two years later, in December 2022, OJSC Power Distribution Networks (which took over electricity sales in Tajikistan following the restructuring of Barqi Tojik in 2021) filed a lawsuit.
According to the Ministry of Energy and Water Resources, TALCO is one of the largest electricity debtors in the country. As of July 1 this year, the total amount of unpaid electricity by the company reached 492.5 million somonis (over $46 million).
Recall, 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 divided into three independent companies: (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.
The Tajik Aluminum Company (TALCO) is one of the ten largest aluminum smelters in the world and the only aluminum producing plant in Central Asia. TALCO is wholly owned by the Tajik government. Tajikistan does not mine alumina but imports the raw material through tolling arrangements.
Construction of the Tajik aluminum plant (TadAZ) began in 1972, and the first pouring of aluminum took place on March 31, 1975. The Tajik aluminum smelter has a rated capacity of 517,000 tons of primary aluminum per year.
On April 3, 2007, TadAZ was officially renamed to TALCO – Tajik Aluminum Company.
