APRIL 28 2014 (The Conway Bulletin) — July 1 will see costs for electricity, heating and hot water rise for residents of Kyrgyzstan, the ministry of energy said.

The last time the Kyrgyz authorities introduced a major utilities hike was at the start of 2010. A few months later, a violent revolution had overthrown Kurmanbek Bakiyev. Mr Bakiyev’s administration was famous for rolling blackouts and heating shortages as harsh winters and corruption took their toll on the national energy grid.

This time, the government headed by new PM Joomart Ortobayev is proceeding more carefully, staggering prices for energy relative to consumption. Heavy users of electricity will be charged triple the current prices by 2017 but the more economically vulnerable users who use lower levels of electricity will be charged only 22.5% more. Heating and hot water costs are similarly tailored.

Kyrgyz energy utilities remain among the cheapest in the world, but in the context of a struggling economy, some are feeling squeezed and the increases are a risk for Mr Ortobayev who has been Kyrgyzstan’s PM for only a few weeks.

Elena Jdanova, a Bishkek pet store owner, thought that small businesses and the middle class are picking up the tab for poor energy policies.

“Every year the government accuses [citizens] of overconsumption, when we know energy is still being stolen by officials. I have over 130 animals that need constant light and heat. These increases will ruin me,” she said.

Kyrgyzstan’s opposition is likely to use the utilities price increase to whip up support but, long-term, the government had little alternative to reducing the subsidies.

ENDS
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(News report from Issue No. 182, published on April 30 2014)