Ministry of Energy set to raise marginal electricity rates again

The Ministry of Energy has drafted an order proposing an increase in marginal electricity rates for several generating companies. The draft order has been posted on the regulatory legal acts portal, signaling potential changes ahead. This follows a previous rate increase in January.

Currently, all power companies are divided into 55 groups. Notable entities among them are Ekibastuz GRES-1 and GRES-2, Eurasian Energy Corporation (a part of ERG), power plant operators in Pavlodar, Ust-Kamenogorsk, Ridder, Atyrau, Crystal Management (owned by Timur Kulibayev’s Joint Resources) and the Shulba Hydropower Plant. The Ministry plans to add five more groups to the existing ones, bringing the total number to 60. However, the specific companies to be included in these new groups have not been disclosed. Besides the new groups, the rate increases may also impact eight existing groups.

Under the proposed changes, the marginal rate for electricity produced by Ekibastuz GRES-1 will increase by 2.7% to $0.017 per kilowatt-hour (kWh), while Eurasian Energy Corporation’s rate will rise by 7.8% to $0.017 per kWh. Astana-Energy’s electricity rates will see a 9.3% hike to $0.019 per kWh, and Aluminum of Kazakhstan will face a significant 30% increase to $0.016 per kWh.

The highest marginal rate could be set for electricity generated by the Stepnogorsk power plant, which may rise by 28.3% from the current $0.047 per kWh to $0.060 per kWh. Power generated by the Zhanazhol plant is expected to increase by 3.6% to $0.025 per kWh. The 3-Energoortalyk electricity rates are projected to rise by 9.4% to $0.031 per kWh, and power generated by Kazchrome could see a 40.5% increase to $0.022 per kWh.

If implemented, these potential rate increases will impact both current and future rates, which will remain fixed until the end of 2025. The proposed rates for the five new groups are expected to range from $0.0064 to $0.12 per kWh. The most recent rate hike occurred earlier this year, with the highest increase reaching 88% for the Kostanay power company. Following that increase, Sungat Yessimkhanov, Vice Minister of Energy, acknowledged that power companies continue to submit requests for further rate increases. However, at the time, Yessimkhanov ruled out the likelihood of any further price increases in the near future.