AlES: public hearings of the report on the results of the 1st half of 2023 on regulated services

On July 21, 2023, AlES JSC conducted a report on the results of the first half of 2023 on the implementation of the approved tariff estimate, on the implementation of the approved investment program for regulated services – thermal energy production, for the supply of water through main pipelines to consumers and other interested parties.

JSC “AlES”, guided by the Rules for the implementation of activities by subjects of natural monopolies, notified all consumers of regulated services and other interested parties by publishing information in the republican newspapers “Egemen Kazakhstan” and “Kazakhstanskaya Pravda” dated June 27, 2023 for No. 120 (30599) and No. 120 ( 29997) and, accordingly, posting on its Internet resource  www.ales.kz.

Representatives of AlES JSC, consumers of regulated services, as well as representatives of the Department of the Committee for Regulation of Natural Monopolies of the Ministry of National Economy of the Republic of Kazakhstan in Almaty took part in the public hearings: chief specialist of the department for regulation of natural monopolies and prices Ospanova B.K. and independent experts.

“AlES JSC is a natural monopoly entity, which is included in the Republican section of the State Register of Natural Monopoly Subjects for the production of thermal energy and the supply of water through main pipelines,” noted Asel Arginbaeva, Managing Director for Economics and Finance of AlES JSC, in the report.

The volume of services provided in the approved tariff estimate  for services for the production of thermal energy  is provided in the amount of 5.6 million Gcal. At the end of the first half of 2023, the actual volume of services provided for the production of thermal energy amounted to 3.2 million Gcal, execution by 58%.

Income from the sale of thermal energy amounted to 12,851.9 million tenge, expenses – 14,471.7 million tenge. The loss for the first half of 2023 was at the level of 1,619.8 million tenge. The reason for the unprofitability is that the current tariff for services for the production of thermal energy does not provide reimbursement of the costs of providing a regulated service and generating profits aimed at the development and efficient functioning of the natural monopoly entity.

By a joint order of the DKREM for the city of Almaty and the Almaty region, as well as the Ministry of Energy of the Republic of Kazakhstan for 2023, the investment program of AlES JSC for the production of thermal energy was approved for a total amount of 2,776.7 million tenge, including from its own funds 1,622 .6 million tenge and due to borrowed 1,154.1 million tenge.

According to the regulations governing the activities of a natural monopoly entity, the investment program indicators are approved for the year, while the actual implementation for the 1st half of the year amounted to 32,609 thousand tenge or 1%. Based on the results of 2023, AlES JSC predicts full implementation of the indicators of the approved investment program.

At the same time, in the first half of 2023, the principal debt on the investment loan raised to finance the investment project “Reconstruction and expansion of Almaty CHPP-2” was repaid. III stage. Boiler unit No. 8″ in the amount of 1,870.1 million tenge, including from activities for the production of thermal energy in the amount of 677.6 million tenge.

The actual volume of services provided  from water supply activities through main pipelines  based on the results of the 1st half of 2023. amounted to 14.8 million m3, fulfillment by 50%. Income from the sale of chemically purified water amounted to 902.1 million tenge, expenses 992.8 million tenge, loss 90.7 million tenge.

By a joint order of the DKREM for the city of Almaty and the Almaty region, as well as the Ministry of Energy of the Republic of Kazakhstan, the Investment Program for water supply services through main pipelines for 2021-2025 was approved. The activities provided for in the approved investment program for 2023 amount to 43.5 million tenge. Development is planned for the second half of this year.

After hearing the report, representatives of the DKREM MNE RK in Almaty asked questions about the tariff estimate, specific consumption of equivalent fuel, and discussed possible changes in tariffs for services for the production of thermal energy and the investment program. All questions are answered comprehensively.