At public consultations that were held on Monday managers of companies of “SevKazEnergy” JSC group of companies presented for discussion their substantiation of new tariffs and tariff estimates for production and supply of thermal power.

Director of “SevKazEnergo” JSC heat-and-power plant No.2 – Viktor Barmin, was the first to advance an arguments for change in current tariffs.

Director of North Kazakhstan Area Department of the Republic of Kazakhstan Agency for Natural Monopolies Regulation – Marat Mustafin, noted the efforts of energy sector aimed at maintenance of energy production and transmission at descent level, which was achieved by investment of substantial funds.   7 turbine-driven generators and 11 boiler units were installed at the heat-and-power plant ensuring heat-and-power plant's electric power capacity of 380MW and thermal power capacity of 859Gcal/h.   At the present time, many projects are being implemented at the heat-and-power plant in order to ensure timely issue and obtaining of heat and power production and transmission complex readiness certificate, improve thermal power production capacity of the heat-and-power plant and ensure stable operation of heat-and-power plant’s equipment in winter time.  

On August 24, 2009, thermal power production tariff of 1,146.25 tenge/Gcal net of VAT was approved and was to be put in effect since October 1.   On June 1 of the current year the company submitted to RK Agency for Natural Monopolies Regulation the project of tariffs for production of thermal energy of 1,281.83 tenge/Gcal net of VAT to be put into effect on October 1, 2010 (or 1,435.65 tenge/Gcal including VAT) for consideration and approval. So increase in current tariff was 11.8%. 

As per director of heat-and-power plant No.2 – V. Barmin, main reason for raising tariff for production of thermal energy since October 1, 2010, was increase of fuel costs, which made up 53% in the tariff structure.   In the tariff project escalation of costs on it made up 17.1%.   Since January 1, 2010, coal price increased by 9.9% (from 944 to 1,037 tenge per a ton) coal transportation costs also increased (by 17% on the whole) and the same is true for fuel oil costs, etc.

Another factor having effect on increase in tariff is escalation of costs of reconstruction and modernization of the basic equipment of heat-and-power plant.   Thus, based on the results of year 2009, investments made up 381.6 million tenge or 104.6% of the planned level of investments.  The company is planning to spend 450 million tenge on reconstruction and modernization of heat-and-power plant's basic equipment in the current year.

Investment obligations of “SevKazEnergo” JSC to Ministry of Industry and New Technologies of the Republic of Kazakhstan will be increased to 2.8 billion tenge in the next year. This amount shall be used by monopolist by means of funds investment into modernization and reconstruction of production assets within the framework of investment program.

Specialist of expert organization “Center Energo” LLP – S. Assambayev, spoke in favor of increase in amount of investments into modernization and through repair of heat-and-power plant after inspection and assessment of the current state of the heat-and-power plant.

Should the tariff for thermal power production be raised, it will result in change of tariff for supply of the given type of power.  Draft tariff suggested by “North Kazakhstan Power Center” LLP amounts to 2,768.64 tenge/Gcal net of VAT, which means increase of the current tariff by 28.2% or by 609.07 tenge per 1 Gcal net of VAT.  Percentage of logistics mark-up in the structure of supply tariff  makes up 0.8%.

Representatives of general public and deputies presented at the public hearings expressed their opinion in respect of statement made by monopolists.   Position of majority was as follows:  Tariff escalation is necessary but it should remain within reasonable limits.  In the course of public hearings its participants considered the structure of suggested tariff and also the issues related to possibility of transfer into ownership of heat-and-power plant of railway line segment along which fuel is delivered to heat-and-power plant, supply of power to contracting organizations of heat-and-power plant and increase of cost of heat-and-power plant No.2 water supply.

North Kazakhstan (Petropavlovsk) issue No.97 (23698), August 12, 2010.
“Yes” to sound tariffs /Polina Antonova/