Kyrgyzstan Sells Electricity Below Cost Despite Tariff Hikes, Energy Minister Says

Kyrgyzstan is selling electricity at a loss, despite rising tariffs, stated Energy Minister Altynbek Ryisbekov. He explained that the cost of producing electricity in 2024 was 2.72 soms per kilowatt-hour, while the average selling tariff was only 2.14 soms, resulting in a loss of 58 tyiyns per unit. For 2025, the cost is projected at 2.45 soms with a tariff of 2.43 soms, and for 2026, the cost is 2.99 soms against a tariff of 2.76 soms. "This means we are selling electricity at a loss," Ryisbekov said. He emphasized that financial inflows into the energy system depend on tariffs, which fund essential repairs, reconstruction, and capital construction. "With such a difference between cost and tariffs, good development of the energy system cannot be expected," he warned. Despite these financial challenges, the ministry is continuing infrastructure repair work. Ryisbekov also provided comparative tariffs in other countries: Tajikistan at 3.6 soms, Kazakhstan at 5.54 soms, Uzbekistan at 7.3 soms, and Armenia at 10.64 soms, noting Kyrgyzstan's lower rates for consumption up to 700 kilowatt-hours (1.64 soms) and above (2.94 soms). The government plans to increase electricity tariffs annually by an average of 15 percent as part of its medium-term tariff policy for 2025-2030.

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This means we are selling electricity at a loss.