Response to R. Ivakhnikova’s article “Warmer with billions”

An article by R. Ivakhnikova was published in the Megapolis newspaper No. 46 dated November 26, 2012. It again discusses the conclusion of Center Energy Expertise LLP in 2010 on the “excess profits” of Almaty Electric Power Plants JSC.

Response to R. Ivakhnikova’s article “Warmer with billions”

Based on this conclusion, back in 2010, a Working Group was created consisting of members of the expert council under the Agency of the Republic of Kazakhstan for the Regulation of Natural Monopolies, which came to the conclusion that “the calculations made by the expert of Center Energy Expertise LLP are incorrect in determining the “excess profit” in the amount of 17 billion tenge, the calculation was made based on the tariffs independently determined by the expert, which do not correspond to the approved tariffs.” Also, in the period from November 2010 to May 2011, the Agency of the Republic of Kazakhstan for the Regulation of Natural Monopolies together with the sectoral Ministry of Industry and New Technologies, the Kazakh Research Institute named after academician Sh.Ch. Chokin, Kazakhenergoexpertiza JSC, the international expert organization LLP Ernst & Young” carried out a comprehensive inspection and audit of Almaty Electric Power Plants JSC. Based on the results of inspections and audits, it was established that the levels of approved tariffs for regulated services are justified; deviations in the implementation of tariff estimates based on the results of 2007-2009 were not identified. All profits received by Almaty Electric Stations JSC were used for new construction, expansion, restoration, renovation, support of existing assets, reconstruction, and technical re-equipment of production assets. Moreover, the activities of Almaty Power Plants JSC, which is a subject of a natural monopoly, are controlled and accountable to the Agency of the Republic of Kazakhstan for the Regulation of Natural Monopolies, the Ministry of Industry and New Technologies. Every year, the financial reports of Almaty Power Plants JSC are published in the media, and public hearings are regularly held on issues of the company’s activities.
Thus, the article by R. Ivakhnikova used materials that do not correspond to reality, refuted by numerous checks by government agencies, an international expert organization, and research institutes.