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Tuesday, 25 April 2023

AlES: Public hearings on the results of 2022

On April 21, 2023, AlES JSC conducted a report on the results of 2022 on the execution of the approved tariff estimate, on the execution of the approved investment program for regulated services – heat energy production, water supply through trunk pipelines to consumers and other interested parties. The report was conducted in the form of a public hearing with the organization of an online broadcast.

JSC "AlES", guided by the Rules of Activity by Natural monopolies, notified all consumers of regulated services and other interested parties by publishing information in the republican newspapers "Egemen Qazaqstan" and "Kazakhstanskaya Pravda" dated March 28, 2023 for No.57 (30536) and No.57 (29934) and, accordingly, posting on its Internet resource https://ales.kz/ru/novosti-kompanii/214-2023-god/2335-ob-yavlenie-o-provedenii-otcheta-pered-potrebitelyami-po-reguliruemym-uslugam-za-2022-g

The public hearings were attended by consumers, public associations, independent experts, as well as the head of the Department of Regulation of Natural monopolies and Prices of the DKREM of the Ministry of National Economy of the Republic of Kazakhstan for Almaty Ardak Zhanabayeva.

– JSC "AlES" is a natural monopoly entity, the company is included in the Republican section of the State Register of Natural Monopoly Entities for the production of thermal energy and water supply through trunk pipelines, Asel Arginbayeva, Managing Director for Economics and Finance of JSC "AlES", 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 5.1 million. Gcal. By the end of 2022, the actual volume amounted to 5.2 million. Gcal, 1.4% performance.

JSC AlES, in accordance with the Law of the Republic of Kazakhstan "On Natural Monopolies", keeps separate records of income, costs and assets involved for each type of regulated services and in general for activities not related to regulated services. During 2022, the following tariffs for thermal energy production services were in effect:

– from January 1 to August 31, 2022 – 3,676.41 tenge /Gcal;
– taking into account the increase in gas prices, the tariff for the services of JSC "AlES" for the production of thermal energy from September 1, 2022 increased to 3,929.83 tenge/Gcal (6.9%).

Income from the sale of thermal energy amounted to 19,730.5 million tenge, expenses 22,520.5 million tenge. Thermal energy production activities are unprofitable. By the end of 2022, the negative financial result amounted to KZT 2,790.0 million, with a profit of KZT 297.7 million approved in the tariff estimate. The reason for the unprofitability is that the current tariff for thermal energy production services does not provide reimbursement of the costs of providing a regulated service and making a profit directed to the development and effective functioning of a natural monopoly entity.

By a joint order of the Departments of the Committee for Regulation of Natural Monopolies of the Ministry of National Economy of the Republic of Kazakhstan for Almaty, Almaty region and the Ministry of Energy of the Republic of Kazakhstan, taking into account the amendments for 2022, the investment program of JSC AlES for regulated thermal energy production service for 2022-2026 was approved.

The amount of measures of the investment program for 2022, provided for at the expense of own funds, is 2,753.2 million tenge, the actual execution of 2,822.3 million tenge.

Financing of the approved investment program and repayment of the principal debt on borrowed credit resources in order to implement the investment project "Reconstruction and expansion of the Almaty CHP-2. III turn. Boiler unit No.8" carried out at the expense of:

– depreciation deductions from assets involved in the provision of regulated services in the amount of KZT 2,510.9 million;
– and other activities not related to regulated services.

The actual volume of services rendered from water supply activities through main pipelines by the end of 2022 amounted to 30.4 million m3, an increase of 3.8%. Income from the sale of chemically treated water amounted to 1,852.4 million tenge, expenses 2,007.2 million tenge, loss 154.8 million tenge.

By a joint order of the Departments of the Committee for Regulation of Natural Monopolies of the Ministry of National Economy of the Republic of Kazakhstan for the city of Almaty, for the Almaty region and the Ministry of Energy of the Republic of Kazakhstan, taking into account the changes made for 2022, the investment program of JSC AlES for water supply services via trunk pipelines for 2022 in the amount of 42.2 million tenge was approved.

The actual amount of the implemented investment program was fully implemented and amounted to 42.2 million tenge at the approved level, including:

– repair with the manufacture and replacement of the decarbonizer tank housing (A, B) of the heating supply unit of station No.4 – 18.2 million tenge;
– repair with the manufacture and replacement of the BFG tank housing of the heating supply unit of station No.7 – 24.0 million tenge.

Financing of the investment program was carried out at the expense of depreciation deductions from assets involved in the provision of regulated services in the amount of 42.2 million tenge.

During the speech, the issues of compliance with the quality and reliability indicators of the provision of regulated services were also highlighted, possible changes in tariffs for thermal energy production services were discussed, the prospects for the company's activities were determined taking into account the implementation of priority investment projects.

After hearing the report, the representatives of the DKREM of the Ministry of National Economy of the Republic of Kazakhstan in the city of Almaty were asked questions concerning the activities of thermal energy production and water supply through main pipelines:

– for the construction of a new CCGT plant up to 600 MW at CHP-2;
– according to the schedule of heat load into the network;
– according to the number of thermal power usage;
– according to the actual temperature of the mains water;
– according to the temperature of cold (raw) water.

Comprehensive answers were given to all the questions.