On April 17, 2024, AlES JSC conducted a report on the results 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 newspaper “Business Kazakhstan” dated March 15, 2024, No. 10 (907) and, accordingly, posting it 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 the Regulation of Natural Monopolies of the Ministry of National Economy of the Republic of Kazakhstan in Almaty took part in the public hearings: Head of the Department for the Regulation of Natural Monopolies and Prices Zhanabaeva A.G. 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 water supply through main pipelines, Asel Arginbaeva, Managing Director for Economics and Finance of AlES JSC, noted 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 2023, the actual volume of services provided for the production of thermal energy amounted to 5.5 million Gcal, execution at 99%.

JSC AlES, in accordance with the Law of the Republic of Kazakhstan “On Natural Monopolies,” maintains separate accounting of income, costs and assets involved for each type of regulated services and in general for activities not related to regulated services. During 2023, the following tariffs for thermal energy production services were in effect:

– from January 1 to July 31, 2023 – 4,003.36 tenge/Gcal;

– taking into account the increase in gas prices and changes in the average monthly nominal wage by type of economic activity, from August 1, 2023, the tariff was increased to 4,550.44 tenge/Gcal. (13.6%);

– from December 1, 2023 – 4,544.43 tenge/Gcal.

During the reporting period, income from the provision of regulated services for the production of thermal energy amounted to 23,260.2 million tenge, actual costs amounted to 26,365.4 million tenge, the financial result from activities was a loss in the amount of (-3,105.2) 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 Department of Energy and Energy of the Ministry of National Economy of the Republic of Kazakhstan for the city of Almaty, the Almaty region and the Ministry of Energy of the Republic of Kazakhstan, taking into account the changes made for 2023, the investment program of AlES JSC for the regulated service of thermal energy production for 2022-2026 was approved.

The amount of activities of the investment program for 2023, provided for at the expense of own funds, is 2,744.7 million tenge, actual implementation is 2,803.5 million tenge.

Financing of the approved investment program and repayment of the principal debt for attracted credit resources in order to implement the investment project “Reconstruction and expansion of Almaty CHPP-2. III stage. Boiler unit No. 8″ was carried out at the expense of depreciation charges from assets involved in the provision of regulated services in the amount of 2,803.5 million tenge.

The actual volume of services provided  from water supply activities through main pipelines  at the end of 2023 amounted to 30.3 million m3, execution 103%. Income from the sale of chemically purified water amounted to 1,844.2 million tenge, expenses 1,982.8 million tenge, loss 138.6 million tenge.

By a joint order of the Department of Energy and Energy of the Ministry of National Economy of the Republic of Kazakhstan for the city of Almaty, for Almaty and the Ministry of Energy of the Republic of Kazakhstan, taking into account the changes made for 2023, the investment program of AlES JSC for water supply services through main pipelines for 2021-2025 was approved. The amount of activities of the investment program for 2023, provided for at the expense of own funds, is 43.5 million tenge. For reasons beyond the control of AlES JSC (failure to fulfill contractual obligations on the part of the contractor), the activities of the approved investment program for water supply services through main pipelines for 2023 were postponed to the next calendar year following the year of their implementation.

After hearing the report, representatives of the DKREM MNE RK in Almaty asked questions about the specific consumption of equivalent fuel, the volume of supplied thermal energy and water consumption for technological needs. All questions are answered comprehensively.