Distribution Companies Ask President to Intervene Amid Monopoly Market Risks

We, the domestic distribution companies of Kyrgyzstan, are compelled to appeal directly to President Sadyr Japarov, as the guarantor of our Constitution. The Ministry of Energy's proposed changes to the tariff policy represent a grave threat to our operations and the broader energy sector. These proposed changes not only contradict existing Kyrgyz laws but also exhibit signs of exceeding authority and creating discriminatory conditions that will undoubtedly harm the investment climate and push private enterprise out of the electricity market.

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We, domestic distribution companies, are appealing to you as the guarantor of the Constitution to protect our legitimate rights.

The Ministry's insistence on basing our tariffs on the cost of imported electricity ignores the fundamental reality of our business. We are domestic investors, working diligently with the state to ensure citizens receive reliable electricity. We do not influence the end-user tariff, which is set by the state. Yet, we are being asked to shoulder the burden of import costs, a move that violates the law stipulating that tariffs must be based on the real costs of network maintenance for each specific enterprise.

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The Ministry of Energy has initiated changes in tariff policy that contradict the laws of the Kyrgyz Republic, contain signs of exceeding authority, and create discriminatory conditions in the electricity market.

Furthermore, the lack of transparency from the Ministry is deeply concerning. They refuse dialogue, withhold substantiated calculations, and fail to engage in meaningful discussions with market participants. This, coupled with actions aimed at the forced repurchase of our infrastructure—actions that directly contradict the President's own decree on protecting property and supporting investors—paints a bleak picture. This path leads to monopolization, the destruction of the private sector, the loss of invested capital, and ultimately, a less competitive and less reliable energy market for Kyrgyzstan. This is not the future we envision for our nation's energy independence.

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The proposed mechanism obliges us to cover the costs of electricity imports. This contradicts the law, according to which the tariff should be based on the real costs of the enterprise for servicing the networks.