Holding public hearings of the report on the results of 2023 on regulated services of JSC AlES to consumers

On April 17, 2024 JSC AlES held a report on the results of 2023: on the execution of the approved tariff estimates; on the execution of the approved investment program for regulated services – production of heat energy; on water supply through main pipelines to consumers and other interested parties.

JSC AlES, guided by the Rules of carrying out activities by subjects of natural monopolies, notified all consumers of regulated services and other interested parties by publishing information in the national newspaper "Delovoy Kazakhstan" on March 15, 2024, №10 (907) and accordingly and posting on its Internet resource www.ales.kz.

The public hearings were attended by representatives of JSC AlES, consumers of regulated services, as well as representatives of the Department of the Committee for Regulation of Natural Monopolies of the MNE of the RK in Almaty: head of the Department for Regulation of Natural Monopolies and Prices Zhanabayeva A.G. and independent experts.

JSC AlES is a subject of natural monopoly, which is included in the Republican section of the State Register of subjects of natural monopoly on production of heat energy and water supply through main pipelines, – said in the report Assel Arginbayeva, Managing Director for Economics and Finance of JSC AlES.

The scope of rendered services in the approved tariff estimate for heat generation services is provided in the amount of 5.6 mln Gcal. According to the results of 2023, the actual scope of rendered services for heat energy production amounted to 5.5 million Gcal, 99% fulfillment.

In accordance with the Law of the Republic of Kazakhstan "On Natural Monopolies", JSC AlES keeps separate accounting of revenues, costs and involved assets for each type of regulated services and in general for activities not related to regulated services. During 2023 the following tariffs for heat generation services were in effect:

– from January 1 to July 31, 2023 – 4,003.36 tenge/Gcal;

– taking into account the growth of gas prices and changes in the average monthly nominal wages by type of economic activity, from August 1, 2023 the tariff is increased to 4,550.44 tenge/Gcal (13,6%);

– from December 1, 2023 – 4,544.43 tenge/Gcal.

For the reporting period, the income from rendered regulated services on heat energy production amounted to 23,260.2 million tenge, actual costs amounted to 26,365.4 million tenge, the financial result from activities – loss of (-3,105.2) million tenge.

The reason for unprofitability is that the current tariff for heat generation services does not provide for reimbursement of expenses for provision of the regulated service and receipt of profit to be used for development and effective functioning of a natural monopoly entity.

By a joint order of the CRNM of the MNE of the RK in Almaty, in the Almaty region and the Ministry of Energy of the RK, taking into account the changes made for 2023, the investment program of JSC AlES for regulated thermal energy production service for 2022-2026 was approved.

The amount of activities of the investment program for 2023, provided at the expense of own funds, is 2,744.7 million tenge, actual execution – 2,803.5 million tenge.

Financing of the approved investment program and repayment of the principal debt on attracted credit resources for the purpose of implementation of the investment project "Reconstruction and expansion of Almaty CHPP-2. III stage. Boiler unit No.8" was carried out at the expense of depreciation charges from assets involved in the provision of regulated service in the amount of 2,803.5 million tenge.

The actual volume of rendered services from the activity on water supply through main pipelines at the end of 2023 amounted to 30.3 million m3, performance 103%. Income from the sale of chemically treated water amounted to 1,844.2 million tenge, expenses 1,982.8 million tenge, loss 138.6 million tenge.

By a joint order of the CRNM of the MNE of the RK in Almaty, in Almaty region and the Ministry of Energy of the Republic of Kazakhstan, taking into account the changes made for 2023, the investment program of JSC AlES for water supply services through main pipelines for 2021-2025 was approved. The amount of activities of the investment program for 2023, provided at the expense of own funds, is 43.5 million tenge. For reasons beyond the control of JSC AlES (non-fulfillment of contractual obligations on the part of the contracting organization), the activities of the approved investment program for water supply services through main pipelines for 2023 were postponed to the next calendar year following the year of their implementation.

After hearing the report, the representatives of CRNM of the MNE of the RK for Almaty asked questions on specific consumption of fuel equivalent, volumes of released heat energy and water consumption for technological needs. All questions were fully answered.