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With what is fraught the increase of gas prices?

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The competition authority rejected the gas transportation company to increase tariffs

The application of JSC "Intergas Central Asia" for approval of tariffs for the transportation and storage of commercial gas was examined at the public hearings, which were held by the Committee on Regulation of Natural Monopolies (CRNM).

Prior to the hearing NCE RK expressed its position on attraction of the business community to the examination of the draft tariff and tariff estimates with the purpose to audit costs and investment programs of JSC "Intergas Central Asia".

As it was reported by the representative of "Intergas Central Asia", from 1st of July  2016, they intend to raise the price for transportation of gas. "Tariffs for storage of commercial gas during 2016-2020 will change from 199.94 tenge per thousand m3 as follows: 4523, 4581, 4706, 4691, 4597 tenge per thousand m3, the service for transportation of commercial gas - from the existing amount of 1380 tenge per thousand m3 to 13640, 14972, 15627, 16186, 16717 tenge per thousand m3 ", - he informed.

However, according to entrepreneurs, the declared tariff for transportation of marketable gas for the period (15 458 tenge per thousand m3), more than 11 more than the current rate (1 380 tenge per thousand m3).

"The increase of marginal gas prices could lead to critical consequences for consumers, as it would have a multiplicative effect on the price of virtually all goods and services (rise in the price of heat, electricity, water, etc.) and may pose a threat to loss of competitiveness of Kazakh products", - say the leaders of enterprises using gas production.

Thus, according to the executive director of the Association of Mining and Metallurgical Enterprises of Kazakhstan Nikolai Radostovtsa, more than 4-fold will increase the production cost of the electrical energy required for the development of the design capacity of the innovative project of Aktobe ferroalloys plant JSC "TNK" Kazchrome ", a 4% increase the cost of pellet production at JSC "SSPGO" being in a state of crisis, etc.

According to the participants of the hearings, the drafts of tariffs need to be modified, and, above all, in terms of working out with the consumers of these services, especially with the subjects of energy-intensive production, in which the increase of tariffs for gas will inevitably affect the cost of production.

As it was reported by the representatives of the Committee on Regulation of Natural Monopolies and Protection of Competition, JSC "Intergas Central Asia" is denied approval on the investment programs.

The final decision on the draft payment will be made by the authorized body on 20th of May this year


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