News https://www.priceexpertise.kz ru Wed, 29 Jul 2026 08:59:09 +0300 Development of the Tariff Indexation Methodology for Natural Monopoly Entities in the Republic of Kazakhstan https://www.priceexpertise.kz/tpost/2m52mp3r71-development-of-the-tariff-indexation-met https://www.priceexpertise.kz/tpost/2m52mp3r71-development-of-the-tariff-indexation-met?amp=true Wed, 29 Jul 2026 08:20:00 +0300

Development of the Tariff Indexation Methodology for Natural Monopoly Entities in the Republic of Kazakhstan

Development of the Tariff Indexation Methodology for Natural Monopoly Entities in the Republic of Kazakhstan

"Tsenovaya Ekspertiza" LLP has completed a major project as part of its collaboration with the Asian Development Bank (ADB) and the Committee for Regulation of Natural Monopolies (CREM). The project was aimed at developing a tariff indexation methodology that aligns with international standards while taking into account the specifics of Kazakhstan's economy.
The initiative was carried out with the participation of both international and Kazakhstani experts. This methodology will serve as the foundation for the new Tariff Indexation Rules applicable to all natural monopoly entities across the country.

Key Objectives

  • Transparency & Justification: Ensuring transparency and economic justification in tariff setting.
  • Balanced Approach: Achieving a fair balance between the interests of consumers and regulated entities.
  • Regulatory Rigor: Establishing clear, strict requirements for investment programs and public hearings.
Impact: This methodology will strengthen trust in the regulatory system and support the sustainable, long-term development of the sector.
]]> Here is the English translation, structured and formatted for clear reading and presentation: --- ## How Utility Tariffs Impact Inflation: May 2025 Review According to official data from the Bureau https://www.priceexpertise.kz/tpost/lfsnaifct1-here-is-the-english-translation-structur https://www.priceexpertise.kz/tpost/lfsnaifct1-here-is-the-english-translation-structur?amp=true Wed, 29 Jul 2026 08:24:00 +0300

Here is the English translation, structured and formatted for clear reading and presentation: --- ## How Utility Tariffs Impact Inflation: May 2025 Review According to official data from the Bureau

How Utility Tariffs Impact Inflation: May 2025 Review

According to official data from the Bureau of National Statistics, annual inflation experienced moderate growth in May 2025, driven primarily by:
  • Seasonal increases in food product prices;
  • Price growth in paid consumer services.

Why Are Service Prices Rising?

This price growth is tied to utility tariff adjustments executed under the new tariff policy, which aims to:
  • Modernize aging utility infrastructure;
  • Accommodate rising resource costs (electricity, coal, and fuel);
  • Increase wages for personnel working at Natural Monopoly Entities (NMEs).

What Is the Total Impact on Inflation?

  • Since the beginning of 2025, utility tariff adjustments have contributed 0.4 percentage points (p.p.) to overall inflation.
  • The total year-end impact is planned to be capped at 0.89 p.p. by the close of the year.

What Lies Ahead?

Tariff changes are expected to remain balanced and strictly controlled to preserve overall price stability and minimize financial strain on consumers.

Astana: Oil Transportation Tariffs Discussed

On April 18, 2025, public hearings were held regarding the application submitted by JSC KazTransOil for simplified tariff approval covering operator activities for unified oil routing via Kazakhstan's pipeline network for the domestic market.
The event was organized by the Committee for Regulation of Natural Monopolies (CREM) under the Ministry of National Economy of the Republic of Kazakhstan, chaired by Nusharuan Lesbekuly, Head of the Oil and Gas Transportation Regulation Division.
Participants in the hearings included representatives from the Ministry of Energy, executive leadership from JSC KazTransOil, members of the media, and key industry stakeholders. Amirzhan Ospanov, Deputy Director General for Economics and Finance at JSC KazTransOil, presented the core report.
Note: The proposed tariff schedule presented remains preliminary; CREM will issue its final regulatory decision following a comprehensive, detailed review.
]]> Nationwide Public Reception Held for Public Utility Consumers https://www.priceexpertise.kz/tpost/hipc7tsyu1-nationwide-public-reception-held-for-pub https://www.priceexpertise.kz/tpost/hipc7tsyu1-nationwide-public-reception-held-for-pub?amp=true Wed, 29 Jul 2026 08:25:00 +0300

Nationwide Public Reception Held for Public Utility Consumers

Nationwide Public Reception Held for Public Utility Consumers

On July 1, 2025, the Committee for Regulation of Natural Monopolies (CREM) under the Ministry of National Economy of the Republic of Kazakhstan held a public reception for public utility consumers. Identical events were organized by CREM's regional departments in every region across the country.
During the event, Committee representatives provided detailed clarifications on key current topics, including:
  • Current conditions in the electric power market;
  • Adjustments to retail prices for commercial gas;
  • The status and review procedure for pending applications in the water supply and heat supply sectors currently before the regulatory body.

Focus on Gas Prices

Particular attention was devoted to the increase in retail gas prices. Effective July 1, 2025, prices for all consumer categories rose by an average of 27%. This adjustment follows an increase in wholesale prices for commercial gas approved by the Ministry of Energy of the Republic of Kazakhstan, which rose by a national average of 33%.

Citizen Engagement & Future Practice

During the reception, Committee specialists received three specific inquiries from consumers and provided comprehensive responses to each.
CREM will continue holding open public receptions to enhance transparency, strengthen feedback loops with the public, and ensure timely communication regarding key changes across regulated utility sectors.
]]> Committee on Regulation of Natural Monopolies: No New Utility Tariff Increases in Q4 https://www.priceexpertise.kz/tpost/j03r91gkb1-committee-on-regulation-of-natural-monop https://www.priceexpertise.kz/tpost/j03r91gkb1-committee-on-regulation-of-natural-monop?amp=true Wed, 29 Jul 2026 08:26:00 +0300

Committee on Regulation of Natural Monopolies: No New Utility Tariff Increases in Q4

Committee on Regulation of Natural Monopolies: No New Utility Tariff Increases in Q4

The Committee on Regulation of Natural Monopolies under the Ministry of National Economy of the Republic of Kazakhstan announces that, in accordance with the Decision of the Government of the Republic of Kazakhstan to revise the growth rate of regulated tariffs, no new rate increases for regulated public utilities are planned for the fourth quarter of 2025.
Furthermore, the overall growth rate of utility tariffs will be reduced:
  • Electricity & Heat Supply: Planned growth rate slowed from 35% to 20%.
  • Water Supply, Wastewater & Gas Supply: Planned growth rate slowed from 50% to 30%.

Factors Enabling Tariff Slowdown

This adjustment was made possible through a combination of key financial and regulatory measures:
  • Deferring a portion of previously scheduled tariff adjustments to later dates;
  • Securing long-term financing mechanisms;
  • Optimizing operating expenses across natural monopoly entities;
  • Applying temporary compensatory tariffs;
  • Executing heating cost recalculations for the past heating season.

Impact on Inflation

Initially, the growth of utility tariffs in 2025 was projected to contribute 1.32 percentage points (p.p.) to overall inflation. Thanks to these newly adopted measures, this impact will be reduced to 0.82 p.p., significantly easing inflationary pressure on the economy.

Key Objectives & Future Strategy

These measures are aimed at:
  • Safeguarding the purchasing power of citizens;
  • Stabilizing price expectations;
  • Ensuring the sustainable performance of municipal utility infrastructure.
Going forward, future tariff increases will be executed in a balanced manner, taking into full account the social sensitivity of the population and state economic policy priorities.
Previously, under the new tariff policy aimed at modernizing engineering infrastructure, phased tariff increases were envisioned. Those measures were necessary to attract investment into network upgrades, raise wages for personnel in natural monopoly sectors, and offset rising costs for electricity, coal, and fuel.
]]> Public Hearings Held in Astana on Tariff Adjustments for JSC KEGOC https://www.priceexpertise.kz/tpost/6pmp3ydi41-public-hearings-held-in-astana-on-tariff https://www.priceexpertise.kz/tpost/6pmp3ydi41-public-hearings-held-in-astana-on-tariff?amp=true Wed, 29 Jul 2026 08:27:00 +0300

Public Hearings Held in Astana on Tariff Adjustments for JSC KEGOC

Public Hearings Held in Astana on Tariff Adjustments for JSC KEGOC

On March 11, 2025, the Committee for Regulation of Natural Monopolies (CREM) under the Ministry of National Economy of the Republic of Kazakhstan held public hearings regarding the application submitted by JSC KEGOC for adjustments to its tariffs and tariff estimates.
The hearings were chaired by Nurlan Bulatbayev, Deputy Chairman of CREM, who highlighted the importance of stakeholder participation, stating:
"The purpose of these hearings is to ensure transparency, openness, public awareness, and a fair balance of interests for consumers."
Participants in the discussion included representatives from the Ministry of Energy of the Republic of Kazakhstan, executive leadership from JSC KEGOC, members of the media, and other key stakeholders.
Aigul Akimbayeva, Managing Director for Economics and Finance at JSC KEGOC, delivered the core report. In closing, it was noted that the presented proposal remains preliminary, with a final regulatory decision to be made following a thorough review.
]]> Committee on Regulation of Natural Monopolies Holds Public Reception for Utility Consumers https://www.priceexpertise.kz/tpost/7rn0physk1-committee-on-regulation-of-natural-monop https://www.priceexpertise.kz/tpost/7rn0physk1-committee-on-regulation-of-natural-monop?amp=true Wed, 29 Jul 2026 08:29:00 +0300

Committee on Regulation of Natural Monopolies Holds Public Reception for Utility Consumers

Committee on Regulation of Natural Monopolies Holds Public Reception for Utility Consumers

Public Reception for Public Utility Consumers: CREM Report
On March 4, 2025, the Committee on Regulation of Natural Monopolies (CRNM) under the Ministry of National Economy of the Republic of Kazakhstan held a public reception for consumers of public utility services.
The event was chaired by Kanat Kulnazarov, Deputy Chairman of the Committee, with the participation of CREM's specialized sectoral divisions.

Key Topics Covered

During the meeting, comprehensive information was provided on major developments across the housing and utility sector, including:
  • Energy & Gas Markets: The current market situation regarding electric power and commercial gas pricing;
  • Pending Applications: Pending tariff applications currently under regulatory review in the water supply and heat supply sectors;
  • National Project Overview: The National Project for the Modernization of Energy and Utility Infrastructure—focusing on reducing accident rates, increasing grid reliability, and introducing social consumption tiers:
  • Water Supply: Tiers introduced across 18 regions;
  • Heat Supply: Tiers introduced across 16 regions.
Note: While no direct questions were submitted by consumers during the session, participants were provided with complete, up-to-date information on key issues in the public utilities sector.
]]> Committee on regulation of natural monopolies of the Ministry of national economy of the Republic of Kazakhstan https://www.priceexpertise.kz/tpost/tmadmxl4d1-committee-on-regulation-of-natural-monop https://www.priceexpertise.kz/tpost/tmadmxl4d1-committee-on-regulation-of-natural-monop?amp=true Wed, 29 Jul 2026 08:31:00 +0300

Committee on regulation of natural monopolies of the Ministry of national economy of the Republic of Kazakhstan

CRNM MNE RK to Hold Public Hearing on Application by JSC KEGOC

CREM MNE RK Invites You to Public Hearings on the Application by JSC KEGOC
  • Date: March 11, 2025
  • Time: 11:00 AM
  • Location: Astana, 59 Tauelsizdik Ave., JSC KEGOC Administrative Building, Conference Hall (1st Floor)
Committee on regulation of natural monopolies of the Ministry of national economy of the Republic of Kazakhstan (CRNM MNE RK) is conducting public hearings as part of the review process for the application submitted by JSC KEGOC to adjust its approved tariffs and tariff estimates prior to their expiration.
Members of Parliament and local maslikhats, representatives of local executive bodies (akimats), state authorities, media outlets, NGOs, industry experts, and all interested consumers are invited to participate.
The application materials are available for review on the official portal: monopolist.gov.kz

Contact Information

]]> CRNM Discusses Key Public Utility Issues https://www.priceexpertise.kz/tpost/8od45p4vh1-crnm-discusses-key-public-utility-issues https://www.priceexpertise.kz/tpost/8od45p4vh1-crnm-discusses-key-public-utility-issues?amp=true Wed, 29 Jul 2026 08:34:00 +0300

CRNM Discusses Key Public Utility Issues

CRNM Discusses Key Public Utility Issues

Discussion on Key Public Utility Issues Held at CREM
On February 4, 2025, the Committee on Regulation of Natural Monopolies (CRNM) under the Ministry of National Economy of the Republic of Kazakhstan held a public reception for public utility consumers.
Identical events were organized across the country by CRNM's regional departments. The reception was broadcast live on Facebook, ensuring maximum openness and accessibility.

Topics Discussed

The event was chaired by Kanat Kulnazarov, Deputy Chairman of the Committee, with the participation of representatives from specialized sectoral divisions. The meeting addressed:
  • Energy & Gas Markets: The current market situation regarding electric power and commercial gas pricing;
  • Pending Applications: Tariff applications currently under review in the water supply and heat supply sectors;
  • National Project Implementation: Progress on the National Project for the Modernization of the Energy and Utility Sectors, with key target goals including:
  • Reducing network wear and tear from 65–90% down to 40%;
  • Constructing new power generation sources with a total capacity of 7.3 GW;
  • Improving system reliability and reducing accident rates across the utility sector.

Social Consumption Tiers & Public Q&A

Updated progress was presented on the rollout of social consumption tiers:
  • Water Supply: Tiers introduced across 16 regions;
  • Heat Supply: Tiers introduced across 15 regions.
During the session, 4 questions were submitted by consumers, all of which received real-time clarifications from Committee officials.
]]> Kanat Kulnazarov Appointed Deputy Chairman of the Committee for Regulation of Natural Monopolies of the MNE RK https://www.priceexpertise.kz/tpost/zlzulzxal1-kanat-kulnazarov-appointed-deputy-chairm https://www.priceexpertise.kz/tpost/zlzulzxal1-kanat-kulnazarov-appointed-deputy-chairm?amp=true Wed, 29 Jul 2026 08:37:00 +0300

Kanat Kulnazarov Appointed Deputy Chairman of the Committee for Regulation of Natural Monopolies of the MNE RK

Kanat Kulnazarov Appointed Deputy Chairman of the Committee on Regulation of Natural Monopolies of the MNE RK

Kanat Kulnazarov Appointed Deputy Chairman of CRNM MNE RK
The Committee on Regulation of Natural Monopolies of the Ministry of National Economy of the Republic of Kazakhstan announces the appointment of Kanat Temirovich Kulnazarov to the position of Deputy Chairman of the Committee.
Kanat Kulnazarov graduated from the Almaty Academy of Economics and Statistics in 2005 and began his professional career in 2006.

Career History

  • 2007–2008: Leading Specialist, Aktobe Regional Department of the Agency for Regulation of Natural Monopolies (AREM).
  • 2009–2022: Held various positions within the Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan—advancing from Expert to Department Director.
  • 2022–2023: Head of the Control and Claims/Litigation Work Division, Committee for Regulation of Natural Monopolies (CRNM MNE RK).
  • March 2023 – Present: Head of the Astana City Department of CRNM.
Note: The appointment of Kanat Temirovich reflects the consistent strengthening of the Committee's human resources potential and is aimed at further improving regulatory efficiency across natural monopoly sectors.
]]> The Project Office for the Implementation of the National Project "Modernization of the Energy and Utility Sectors" Has Launched https://www.priceexpertise.kz/tpost/te5z5av541-the-project-office-for-the-implementatio https://www.priceexpertise.kz/tpost/te5z5av541-the-project-office-for-the-implementatio?amp=true Wed, 29 Jul 2026 08:44:00 +0300

The Project Office for the Implementation of the National Project "Modernization of the Energy and Utility Sectors" Has Launched

The Project Office for the Implementation of the National Project "Modernization of the Energy and Utility Sectors" Has Launched

Project Office Officially Kicks Off for the National Project on Modernization of Energy and Housing & Utilities
The inaugural meeting was chaired by Deputy Prime Minister Kanat Bozumbayev.

Current Challenges & Targets

  • Infrastructure Wear and Tear: Net degradation across 87 monopoly enterprises stands between 65% and 100%.
  • Target: Reduce overall wear and tear to 40%.
  • Capacity Expansion: Plan to construct an additional 7.3 GW of power generation capacity.

Investment Needs through 2029

  • Power Generation: 6.2 trillion ₸
  • Utility Networks: 6.8 trillion ₸
Financing Channels & Governance:
  • Second-tier banks (STBs) and national financial institutions
  • International Financial Institutions (IFIs / MFOs)
  • Coordinator: JSC Baiterek
  • Oversight: JSC KazCenter Housing and Utilities

Support for Domestic Industry

  • Maximizing capacity utilization at existing plants
  • Establishing 27 new manufacturing facilities and creating jobs
  • Implementation of a unified electronic procurement platform and a registry of unreliable suppliers

Social Support & Fair Tariffs

  • Market-based tariffs: Applied to solvent, able-to-pay consumers.
  • Vulnerable Population Protection: Socially vulnerable groups (SUsN) will be supported through automated housing assistance.
  • Payment Cap: Utility payments capped at no more than 5% of total household income.
  • Unification of consumption norms and housing space standards.

Next Steps

  • Within 2 weeks: Finalize and prepare the comprehensive Roadmap.
  • By the end of January: Broad public information campaign targeted at:
  • Media outlets
  • Business community
  • Natural Monopoly Entities (NMEs)
Kanat Bozumbayev:
"This project requires a comprehensive, prompt approach and the active participation of everyone—from government ministries to individual citizens."
]]> Regulator Holds Public Reception for Utility Consumers https://www.priceexpertise.kz/tpost/rptsue00h1-regulator-holds-public-reception-for-uti https://www.priceexpertise.kz/tpost/rptsue00h1-regulator-holds-public-reception-for-uti?amp=true Wed, 29 Jul 2026 08:45:00 +0300

Regulator Holds Public Reception for Utility Consumers

Regulator Holds Public Reception for Utility Consumers

CREM Public Reception on Housing and Public Utility Issues
  • Organizer: Committee for Regulation of Natural Monopolies (CREM)
  • Scope: Conducted nationwide, including regional departments
  • Chairperson: Nurlan Bulatbayev, Deputy Chairman of CREM
  • Participants: Representatives of specialized sectoral divisions

Key Announcement: Electricity Sector Reform

Effective 2025:
  • Regional Power Grid Companies (RECs) will exclusively carry out retail electricity supply.
  • A total of 21 licenses have already been issued to RECs.
  • Objectives: Consolidate transmission and supply activities, enhance power system efficiency, reduce infrastructure costs, and ensure reliability and quality for consumers.
Aman Boranbay, Electricity Sector Regulation Division:
"These changes will enable the modernization of the sector and improve service delivery for the public."

Implementation of Social Consumption Tiers

Social consumption tiers are currently being introduced across 15 regions:
  • Water Supply: 44 Natural Monopoly Entities
  • Heat Supply: 42 Natural Monopoly Entities
]]> Licensed Energy Transmission Organizations to Handle Retail Electricity Supply in Kazakhstan https://www.priceexpertise.kz/tpost/kvrrpdlsj1-licensed-energy-transmission-organizatio https://www.priceexpertise.kz/tpost/kvrrpdlsj1-licensed-energy-transmission-organizatio?amp=true Wed, 29 Jul 2026 08:51:00 +0300

Licensed Energy Transmission Organizations to Handle Retail Electricity Supply in Kazakhstan

Licensed Energy Transmission Organizations to Handle Retail Electricity Supply in Kazakhstan

New Retail Electricity Supply Model in Kazakhstan
  • Effective Date: January 1, 2025
  • Overview: Retail electricity supply will be carried out exclusively by licensed Regional Power Grid Companies (RECs) that meet statutory legal requirements.

Key Changes

  • Unregulated Energy Supply Organizations (NESOs) are ceasing operations.
  • Supply Functions are fully transferred to licensed RECs.
  • SME Tariff Reductions: Tariffs for small and medium-sized businesses have been reduced across 12 regions by an average of 11.62% (-4.39 KZT).
  • Legal Basis: Law signed by the President of the Republic of Kazakhstan on July 8, 2024.

Licensed RECs by Region

Region
Licensed Regional Power Grid Company (REC)
Astana City
JSC "Astana-REC"
Almaty City & Almaty Region
JSC "Alatau Zharyk Company"
Shymkent City & Turkistan Region
LLP "Ontustik Zharyk Transit"
Karaganda Region
LLP "Karaganda Zharyk", LLP "Karagandy REC"
Aktobe Region
LLP "Energosystema"
Kostanay Region
LLP "EPK-Atica", LLP "EPK-forfait"
Pavlodar Region
LLP "Gorelektroset", JSC "Pavlodarskaya REC"
Akmola Region
LLP "Kokshetau Energo", JSC "Akmolinskaya REC"
Abai & East Kazakhstan Regions
JSC "United EnergyService Company"
North Kazakhstan Region
JSC "North Kazakhstan REC"
West Kazakhstan Region
LLP "WKR – REC"
Kyzylorda Region
JSC "Kyzylordinskaya REC"
Atyrau Region
JSC "Atyrau Zharyk"
Zhetysu Region
JSC "Taldykorgan ATESC"
Ulytau Region
JSC "Zhezkazgan REC"
Zhambyl Region
LLP "Zhambyl Electricity Networks"
Mangystau Region
JSC "Mangystau REC"
]]> Committed to Deliver: Monopolies to Refund Over 23 Billion Tenge to the Public for Non-Compliance in Water Supply and Sanitation https://www.priceexpertise.kz/tpost/e78pjbrdr1-committed-to-deliver-monopolies-to-refun https://www.priceexpertise.kz/tpost/e78pjbrdr1-committed-to-deliver-monopolies-to-refun?amp=true Wed, 29 Jul 2026 08:53:00 +0300

Committed to Deliver: Monopolies to Refund Over 23 Billion Tenge to the Public for Non-Compliance in Water Supply and Sanitation

Committed to Deliver: Monopolies to Refund Over 23 Billion Tenge to the Public for Non-Compliance in Water Supply and Sanitation

The Committee for Regulation of Natural Monopolies under the Ministry of National Economy of the Republic of Kazakhstan has summarized the execution results of tariff estimates and investment programs in the water supply and sanitation sectors for 2023. The review revealed that a number of Natural Monopoly Entities (NMEs) failed to meet their obligations to consumers, resulting in unutilized funds initially factored into the tariffs.
Pursuant to the Law "On Natural Monopolies," all NMEs report annually by May 1 to the regulator on the expenditure of tariff estimate funds and the implementation of investment programs. Within 60 days, the Committee analyzes the submitted data and assesses the efficiency of investment utilization. If obligations are unmet, the regulator applies a temporary compensatory tariff (TCT) mechanism: service rates are reduced, and unspent funds are returned to consumers via lower tariffs.
Based on the results for 2023, a total of 23.1 billion KZT will be compensated to the public—three times more than the previous year. The vast majority of the amount (22.3 billion KZT) is in the water supply sector, while an additional 0.8 billion KZT will be refunded for sanitation services.
At the same time, the sector demonstrates stable growth in capital investments, indicating a gradual strengthening of its material base. For January–October 2025, investments reached 422.4 billion KZT compared to 409.8 billion KZT in the same period of 2023. Water supply accounted for the lion's share at 328.8 billion KZT, while sanitation received 76.7 billion KZT. By the end of 2024, total investments amounted to 598.6 billion KZT, which is 23% higher than in 2022; investments in water supply reached 410 billion KZT, and in sanitation—146.2 billion KZT.
The growth in capital investments signifies equipment modernization, network infrastructure development, and enhanced reliability of water supply and sanitation systems. Simultaneously, the TCT mechanism ensures the return of funds to consumers and incentivizes monopolies to conscientiously execute their investment programs. Thus, regulatory policy balances the protection of public interests with creating conditions for sustainable utility infrastructure renewal.
]]> Monopolies Forced to Return 5.4 Billion Tenge to Kazakhstanis for Non-Compliance in Heat and Electricity Supply https://www.priceexpertise.kz/tpost/5lvy8kscl1-monopolies-forced-to-return-54-billion-t https://www.priceexpertise.kz/tpost/5lvy8kscl1-monopolies-forced-to-return-54-billion-t?amp=true Wed, 29 Jul 2026 08:52:00 +0300

Monopolies Forced to Return 5.4 Billion Tenge to Kazakhstanis for Non-Compliance in Heat and Electricity Supply

Monopolies Forced to Return 5.4 Billion Tenge to Kazakhstanis for Non-Compliance in Heat and Electricity Supply

The Committee for Regulation of Natural Monopolies of the Ministry of National Economy of the Republic of Kazakhstan has completed its review of the execution of tariff estimates and investment programs in the heat and electricity supply sectors for 2023. The analysis revealed that 108 Natural Monopoly Entities failed to utilize the planned funds intended for infrastructure modernization.
As a result, the regulator introduced temporary compensatory tariffs, ensuring the return of funds to consumers through reduced service prices. The total compensation amount will reach 5.4 billion KZT, with 4.2 billion KZT accounting for heat supply and 1.2 billion KZT for electricity supply.

Industry Investment and Production Dynamics

Despite the identified non-compliance, the industry demonstrates sustainable growth in capital investments:
  • Capital Investments (Jan–Oct 2024): Reached 871.2 billion KZT compared to 853.6 billion KZT during the same period in 2023.
  • Full-Year 2023 Record: Total investments set a record at 1.2 trillion KZT.
Positive dynamics are also observed in production volumes:
  • Electricity Generation (Jan–Oct 2024): Reached 1.8 trillion KZT (up from 1.6 trillion KZT in the same period of 2023).
  • Heat Generation (Jan–Oct 2024): Reached 332.7 billion KZT (up from 255.5 billion KZT in the same period of 2023).
  • Full-Year 2023 Totals: Production approached 2 trillion KZT for electricity and 350.5 billion KZT for thermal energy.

Regulatory Impact

The temporary compensatory tariff mechanism simultaneously protects consumer rights and instills discipline in monopoly entities. Through reduced tariffs, the public does not pay for unutilized investments, while companies are incentivized to execute projects in a timely manner, directly supporting the reliability of supply systems and the further development of the country's energy infrastructure.
]]> Consumer Protection in Public Utilities: Monopolies Fined 418 Million Tenge https://www.priceexpertise.kz/tpost/iyv73foj91-consumer-protection-in-public-utilities https://www.priceexpertise.kz/tpost/iyv73foj91-consumer-protection-in-public-utilities?amp=true Wed, 29 Jul 2026 08:54:00 +0300

Consumer Protection in Public Utilities: Monopolies Fined 418 Million Tenge

Consumer Protection in Public Utilities: Monopolies Fined 418 Million Tenge

The Committee for Regulation of Natural Monopolies of the Ministry of National Economy of the Republic of Kazakhstan (CREM MNE RK) considers protecting consumer rights in public utilities as one of its key priorities. Its mandate encompasses prompt identification of violations, monitoring supplier compliance, and overseeing the quality and accessibility of services across the electricity, heat, water, and gas supply sectors.
During the first eight months of 2024, CREM and its territorial units conducted 11 scheduled on-site and 145 unscheduled inspections—a 20.8% increase compared to the same period in 2023. These supervisory activities revealed 109 violations (a 38% increase), resulting in 109 issued enforcement orders (a 62.7% increase). To date, 64 enforcement orders have been fully executed, while the remainder are undergoing the appeal process.
As a result, 180 administrative cases were initiated, with total imposed fines reaching 418.3 million KZT. Of this amount, 153.3 million KZT has already been recovered and transferred to the state budget. For comparison, during the first eight months of 2023, 120 unscheduled inspections were conducted, yielding 79 violations and 67 enforcement orders (44 of which were executed).

Digital Supervision Tools

The efficiency of inspections is driven by an integrated suite of digital tools:
  • Automated Risk Management System (RMS): Operating since January 1, 2024, the RMS schedules inspections based on the potential risk level of violations.
  • Integration with Smart Data Ukimet (SDU): Integrated in June 2024, the platform enables real-time data collection on violations, automated risk classification of Natural Monopoly Entities, and human-intervention-free generation of inspection notifications.

Public Engagement & Regulatory Impact

Consumers can contact CREM MNE RK regarding applicable tariffs, meter installation and operation, contract terms, grid connection, differentiated tariff application, and other aspects of public utility provision. The expansion of digital oversight combined with stricter enforcement creates robust guarantees for regulatory transparency, reduces potential for supplier abuse, and ensures tangible protection of consumer interests.
]]> Kazakhstan Ranks Among the Top 10 Countries in the UN Online Service Index https://www.priceexpertise.kz/tpost/bomp26nfm1-kazakhstan-ranks-among-the-top-10-countr https://www.priceexpertise.kz/tpost/bomp26nfm1-kazakhstan-ranks-among-the-top-10-countr?amp=true Wed, 29 Jul 2026 08:55:00 +0300

Kazakhstan Ranks Among the Top 10 Countries in the UN Online Service Index

Kazakhstan Ranks Among the Top 10 Countries in the UN Online Service Index

Kazakhstan has consolidated its status as a digital leader, rising to 10th position in the UN’s global Online Service Index (OSI) for 2024. Ahead lie only nations with the most advanced digital infrastructures, with Kazakhstan outranking all CIS and Central Asian states. South Korea retained first place (score of 1.00), while Japan—a recognized technological heavyweight—ranked just one spot above Kazakhstan. For comparison: Armenia ranked 53rd, Russia 56th, Uzbekistan 59th, Kyrgyzstan 89th, and Turkmenistan 172nd.
Kazakhstan's strong performance is rooted in systemic e-government reforms and the automation of public services. One of the most prominent examples is the digitalization of the technical specifications (TS) issuance process for utility network connections. Executed jointly by the Committee for Regulation of Natural Monopolies (CREM) under the MNE RK and the Ministry of Industry and Construction of the RK, TS requests can now be processed remotely via integrated platforms: the "Monopolist" database, the automated information system "State Urban Planning Cadastre" (AIS GGC), the e-Gov portal, or traditionally via the office of the respective natural monopoly entity.

Streamlined Online Workflow

  1. Submission: The applicant completes an online "TS Request" form within the "Monopolist" database.
  2. Automated Processing: The request routes automatically to the AIS GGC system, which accesses real-time cartographic data and available network capacities.
  3. Delivery: The end-to-end data exchange eliminates the need for in-person visits, minimizes corruption risks, and reduces processing times to just a few business days. Operating on a single-window principle, application statuses are updated in real time.

Regulatory Significance

Technical specifications outline the mandatory technical requirements confirming an object’s capacity to connect to electricity, heat, gas, water supply, or sanitation networks. They are required for new construction, building renovations, capacity expansions, or changes to technical parameters. Rejections are permitted only in cases involving a total lack of available capacity or supporting infrastructure. Process automation ensures these rules remain transparent and uniform across all applicants.
The expansion of electronic services simplifies procedures for citizens and businesses while boosting the country's investment attractiveness through a predictable, user-friendly regulatory environment. Kazakhstan’s entry into the top 10 of the OSI ranking confirms that its digitalization strategy is delivering tangible results, with platform-based solutions serving as a key driver of continued growth across housing, urban planning, and related sectors.
]]> Monopolies to Refund Over 768 Million Tenge to Kazakhstanis for Heating https://www.priceexpertise.kz/tpost/daoyhr33i1-monopolies-to-refund-over-768-million-te https://www.priceexpertise.kz/tpost/daoyhr33i1-monopolies-to-refund-over-768-million-te?amp=true Wed, 29 Jul 2026 08:56:00 +0300

Monopolies to Refund Over 768 Million Tenge to Kazakhstanis for Heating

Monopolies to Refund Over 768 Million Tenge to Kazakhstanis for Heating

The Committee for Regulation of Natural Monopolies of the Ministry of National Economy of the Republic of Kazakhstan has completed recalculations for the 2023/2024 heating season, ordering heat supply companies to return 768.2 million KZT to consumers. The compensation applies to apartments in residential buildings without heat meters, where billing was calculated using standard consumption norms.
Under national legislation, in the absence of heat meters, the tariff is adjusted post-season based on actual ambient outdoor temperatures certified by "Kazhydromet." Overpaid amounts are either credited to individual accounts or applied as advance payments toward the upcoming 2024/2025 heating season.

Regional Breakdown of Refunds

The largest refund amounts are distributed across the following regions:
  • East Kazakhstan Region: 354.5 million KZT
  • Almaty City: 95.4 million KZT
  • Mangystau Region: 60.9 million KZT
  • Kyzylorda Region: 38.6 million KZT
  • Aktobe Region: 37.7 million KZT
  • Akmola Region: 33.5 million KZT
  • Kostanay Region: 32.0 million KZT
Note: In the Ulytau and Karaganda regions, no recalculation was required, as tariffs in these areas are initially calculated based on real-time temperature data.

Metering Infrastructure & Consumer Rights

Installing heat meters remains the most reliable way to prevent overpayments and ensure billing reflects actual energy consumption. Approximately 75% of multi-apartment residential buildings in Kazakhstan are currently equipped with heat meters, a share that continues to grow.
For inquiries regarding tariffs, recalculations, or consumer rights enforcement, citizens can contact the regional departments of the Committee for Regulation of Natural Monopolies. The regulator aims to guarantee calculation transparency and the timely return of funds, ensuring fair payment terms for all consumer groups.
]]> Coverage of Individual Cold Water Meters in Kazakhstan Exceeds 85%: Only One Region Achieves 100% Benchmark https://www.priceexpertise.kz/tpost/cs551kjdt1-coverage-of-individual-cold-water-meters https://www.priceexpertise.kz/tpost/cs551kjdt1-coverage-of-individual-cold-water-meters?amp=true Wed, 29 Jul 2026 08:57:00 +0300

Coverage of Individual Cold Water Meters in Kazakhstan Exceeds 85%: Only One Region Achieves 100% Benchmark

Coverage of Individual Cold Water Meters in Kazakhstan Exceeds 85%: Only One Region Achieves 100% Benchmark

Kazakhstan continues to expand its water consumption metering infrastructure, viewing it as a critical instrument to counter the growing water deficit across Central Asia. According to the Committee for Regulation of Natural Monopolies, 85.4% of apartments and private houses nationwide are now equipped with individual water metering devices (IWMs). However, only the Mangystau Region has achieved a 100% installation rate, while coverage exceeds 90% across thirteen other regions.
The status of general building water metering devices (GWMs) remains less uniform, with the national average standing at 67.8%. Multi-apartment residential buildings in Almaty, Shymkent, and the West Kazakhstan Region are fully equipped (100%), while the capital city, Astana, approaches full coverage at 99.7%. Conversely, significant lags persist in the Kostanay (5.2%), Atyrau (8.3%), and North Kazakhstan (12.1%) regions.

Key Drivers and Projections

The accelerated rollout of water meters is driven by forecasts of a chronic regional water deficit:
  • Deficit Projection: By 2028, the gap between available resources and demand in Central Asia is expected to reach 5 to 12 km³.
  • Global Context: According to WWF estimates, by 2050, approximately 46% of global GDP will be generated in regions facing high water risks, compared to less than 10% today.

Meter Installation Models

Metering devices are installed under two transparent operational models:
  1. Contracted Installation by Monopoly Entities: The natural monopoly entity installs the meter under a contract structured with deferred consumer payments.
  2. Individual Consumer Installation: The subscriber installs an IWM independently at their own expense in accordance with technical requirements.
In both instances, mandatory procedures include device sealing, registration within the billing system, and subsequent billing based on actual consumption readings.

Distinction Between IWM and GWM Functions

  • Individual Water Meters (IWMs): Record consumption within a specific apartment, ensuring residents pay strictly for their actual usage.
  • General Building Water Meters (GWMs): Track total building-wide consumption, identify utility grid losses, and equitably allocate discrepancies among residents.
Comparing IWM and GWM data allows utilities and residents to pinpoint exact points of water loss and determine accurate billing amounts.
The widespread deployment of metering infrastructure provides a practical mechanism for resource conservation and financial equity. Amid escalating water risks, comprehensive metering reduces losses, enables the redirection of saved capital toward grid modernization, and secures water resources for future generations.
]]> In-Person Practical Seminar for Natural Monopoly Entities and Public Utilities: Key Takeaways and Action Plan https://www.priceexpertise.kz/tpost/3l5j0gh631-in-person-practical-seminar-for-natural https://www.priceexpertise.kz/tpost/3l5j0gh631-in-person-practical-seminar-for-natural?amp=true Wed, 29 Jul 2026 08:59:00 +0300

In-Person Practical Seminar for Natural Monopoly Entities and Public Utilities: Key Takeaways and Action Plan

In-Person Practical Seminar for Natural Monopoly Entities and Public Utilities: Key Takeaways and Action Plan

An in-person practical seminar was conducted for Natural Monopoly Entities (NMEs) and public utility organizations. Through practical case studies, six key topics were addressed: preventing temporary compensatory tariffs (TCTs), tariff mechanisms for modernization, energy efficiency, railway siding service tariffs, NME procurement practices, and separate asset accounting.
Below is the summary of key solutions, actionable steps, and control points.

1. Preventing Temporary Compensatory Tariffs (TCT)

  • Causes of TCT: Deviations of actual expenditures from the tariff estimate, failure to execute investment programs, quality and procurement discipline violations, and inaccurate reporting.
  • Preventive Measures:
  • Quarterly reconciliation of actual performance against the tariff model (costs, volumes, quality KPIs).
  • Protocols for managerial action across all "red zones" (losses, SAIDI/SAIFI, accounts receivable, capital expenditures).
  • Documentary proof demonstrating the targeted use of investment capital.
  • Proactive explanations submitted to the regulatory authority when deviation risks arise.
  • Internal Control: Quarterly "anti-TCT" audits, a designated list of corrective measures, assignees, and deadlines.

2. Housing and Utility Modernization: Tariff Aspects and Profit Growth

  • Core Principles: Return on and return of invested capital, inclusion in the tariff base upon asset commissioning, and alignment with quality KPIs.
  • Practical Steps:
  • Implementation of a "Tariff-for-Investment" initiative backed by a quarterly commissioning roadmap.
  • KPI passports (reliability, system losses, pressure/temperature standards, complaint rates).
  • Separate accounting for CAPEX and OPEX across all projects.
  • Public hearings featuring clear, transparent presentations on consumer benefits.
  • Outcome: Transparent payback periods, reduced operational risks, and manageable profitability tied to service quality.

3. Energy Efficiency: Tariffs, Audits, and Reporting

  • "Energy Efficiency $\rightarrow$ Tariff" Link: Verified savings in losses and operational expenses are factored into tariff calculations for subsequent periods.
  • Reporting Requirements: Annual reporting supported by photo and meter verifications, a complete project registry, and financial tracking.
  • Inspection Readiness: Availability of primary documentation (commissioning acts, meter passports, methodology for calculating savings); internal checklists targeting common errors.
  • Quick Wins: Inventory of hidden losses, rapid operational fixes (tuning, automated metering systems [ASKUE], system balancing), and regime controls.

4. Railway Siding Service Tariffs: Solutions and Opportunities

  • Calculation Approach: Transparent $Cost / Volume$ ($D / Q$) calculations distinguishing direct and indirect costs; option to apply individual tariffs per siding track.
  • Cost Structure: Raw materials, spare parts, labor, depreciation, infrastructure maintenance/repairs, and overheads—backed by clear allocation drivers and norms.
  • Justification for Clients & Regulators: Comprehensive service list, clear measurement units (car-kilometers, shunting operations, etc.), downtime/window tracking methodologies, and photo documentation of track conditions.
  • Commercial Opportunities: Rate differentiation based on work types and service levels while maintaining transparent cost breakdowns.

5. Procurement Practices for Natural Monopoly Entities

  • Core Principles: Transparency, public accessibility, equal opportunity, fair competition, and support for domestic manufacturers.
  • Procurement Lifecycle: Planning $\rightarrow$ Selection of procurement method $\rightarrow$ Bidding procedure $\rightarrow$ Contract execution $\rightarrow$ Reporting and archive storage.
  • Risk Management:
  • Up-to-date lists of procurements and technical specifications.
  • Pre-tender market briefings and Q&A publications.
  • Evaluation criteria with weighted scoring and quality thresholds.
  • Screening against registers of unreliable suppliers.
  • Oversight of price and volume contract modifications.
  • Internal Policies: Standardized document templates, conflict-of-interest logs, and independent compliance reviews for major procurements.

6. Separate Asset Accounting

  • Objective: Eliminate cross-subsidization between regulated and non-regulated services.
  • Classification: Categorization of direct, indirect, shared, and general business costs/assets, each governed by an approved allocation driver.
  • Methodological Framework: Alignment with IFRS, standardized reporting forms for revenues/expenses/assets, and verification of the causal link: $\text{Asset} \rightarrow \text{Service} \rightarrow \text{Tariff}$.
  • Control Mechanisms: Annual submission of forms, internal audits of cost allocations, and cross-verification of accounting data against operational metrics.

Executive Action Checklist (To Be Completed by Year-End)

  1. Execute an "Anti-TCT" Audit: Review actual performance vs. tariff estimates and investment programs, service quality, procurement compliance, and reporting accuracy.
  2. Update Procurement Regulations: Revise quality criteria, market communication procedures, unreliable supplier filters, and contract change management.
  3. Establish Separate Accounting: Approve allocation drivers, standardize accounting forms, and assign responsible managers for each service line.
  4. Align Energy Initiatives: Consolidate energy efficiency projects with financial tracking to prepare a verified evidence base for regulatory audits.
  5. Update Railway Siding Calculations: Recalculate $D$ and $Q$ values, update service catalogs and measurement units, and complete photo-inspections of track infrastructure.
  6. Revise the Modernization Roadmap: Finalize asset commissioning schedules, update KPI passports, and prepare presentation materials for public hearings.

Contact Information

For consultations, tariff application preparation, setup of separate accounting systems, or procurement support, contact the PriceExpertise team via the website feedback form or by email at: priceexpertise1@gmail.com.
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