Kazakhstan’s Ministry of Energy Hides Power Plant Tariffs Amid Price Hikes
Non-Transparent Tariffs
Electricity pricing in Kazakhstan lacks transparency as prices rise faster than official inflation rates. The Ministry of Energy does not disclose tariff structures, investment plans, or the methods behind power plant pricing.
The issue worsened in 2024 when the energy digital platform was transferred from KOREM (Kazakhstan Electricity Market Operator) to CACTEC (Central Asian Center for Electricity Trade). The project has since stalled, leaving consumers without access to essential information about price increases.
Corruption Risks in a Billion-Dollar Market
Kazakhstan’s energy market, worth 2 trillion tenge (approximately $4 billion), is vulnerable to corruption. A mere 10% price increase in power plant tariffs could redirect an additional 200 billion tenge.
Without transparent pricing mechanisms, the scale of potential abuse is significant. Experts argue that public hearings and data transparency are crucial to reduce corruption risks and ensure accountability.
Impact on Consumers
Kazakhstani consumers are already burdened by rising electricity costs, which are expected to continue increasing over the next five years. Without reforms, the financial strain on households and businesses will grow, deepening social discontent.
Proposed Solutions
Experts suggest the following measures to improve transparency:
- Public hearings. Ministry and power plant representatives should explain tariff increases and present investment plans to the public.
- Data publication. Tariff structures and investment programs must be accessible for public review.
- Enhanced digitalization. Reviving the energy platform could provide structured and understandable data for consumers.
Unless these steps are implemented, the tariff-setting process will remain opaque, increasing consumer dissatisfaction and corruption risks.
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