QAZAQ GREEN. Kazakhstan plans to increase gas prices, as well as tariffs of energy producing organizations, Energy Minister Almasadam Satkaliyev said on the sidelines of the Government, Kazakhstan Today reports.

“It's CHP, it's large GRES, it's the reliability of energy and heat supply. It will be a smooth growth," Sputnik quotes the Minister. According to the Energy Minister, where the wear and tear are higher, more money will be needed, and the tariff will be higher.

Also, Satkaliyev said that, according to the department, electricity prices should rise by at least 15% per year, so that the Kazakhstan cities comfortably meet the winter in warmth. In addition, the Minister announced an increase in gas prices by 5-10 KZT shortly, Zakon.kz reported.

Representatives of the media asked what will happen to the price of liquefied gas, as some experts have expressed the view that Kazakhstan will soon face a shortage.

"We have to agree with the experts, they are certainly right. We are already seeing this trend, associated with a large-scale re-equipment of vehicles, and the transition from gasoline and diesel to the use of liquefied petroleum gas. And its production in Kazakhstan is significantly limited. We overlap the market due to annual appeals to TCO and redirection from export flows to the domestic market. That is, this volume is growing, if there was a small volume, now we are talking about quite significant volumes - tens of thousands of tons - just to cover the domestic deficit, "- said the Minister.

The problem, he said, lies in the price: at a cost of more than 70 KZT now the selling price is 50 KZT. As a result, companies are knowingly operating at a loss.

By comparison, Satkaliyev cited costs in Russia, where they are twice as high as in Kazakhstan, about 120 KZT, and in Tajikistan, 177 KZT.

"The real market price is there. Based on world practice, to stimulate the production of liquefied gas as motor fuel, the countries, which have surplus production of this gas, they apply a coefficient of 70% of the price of gasoline. Then it is a reasonable economic mechanism. We have a significant gap, and those motorists who are now converting their cars, they must understand that the prices are likely to rise," said the Minister.

He also commented on how much the price of gas could go up.

"This is the competence of the Agency for Protection and Development of Competition of the Republic of Kazakhstan (APDC). Now the price varies by region. The first increase will be insignificant, I think 5-10 KZT, no more, based on the social situation. And then the head of state instructed us to determine the period when we will reach at least the cost price. If the government together with the APDC and MPs determine the period, within three years we will move to a market price, or within four, or two years. During this time, we will provide you with the price dynamics. The first possible increase, by 5-10 KZT, can happen very shortly. This is a month or two or three months," Satkaliyev added.

A fair price for gas, according to his assessment, with a cost price greater than 70 KZT, "at least 5% of profitability should be above the cost price to ensure investment and shareholder returns.

Meanwhile Prime Minister Alikhan Smailov today at a meeting chaired by the head of state told where the money from the tariff increase would go.

"Under the programme 'Tariff for investment' we plan to implement Units 3 and 4 at Ekibastuz GRES-2, will restore Unit 1 at Ekibastuz GRES-1 with a capacity of 500 MW, and are also working on the construction of the Balkhash thermal power plant," the Prime Minister said.

Also, he said, this year the modernization of power plants with a capacity of over 700 MW in the Atyrau, Karaganda and Pavlodar regions will be completed. The southern regions are implementing gas-fired power generation projects with a capacity of over 2.3 GW with completion in 2025-2026, including the commissioning of combined-cycle plants at TPP-2 in Almaty and Turkestan, Smailov added.

"Construction of the new cogeneration plant in Kyzylorda has begun this year, and tender procedures are underway to identify contractors for the cogeneration plants in Kokshetau and Semey," he said.

In addition, together with Total Energies (France), Acwa Power (Saudi Arabia) and Masdar (UAE), we started implementing RES projects with a total capacity of 3 GW. The construction of nuclear power plants and small modular reactors is also under consideration, a new single-buyer model in the electricity market will be introduced to attract investment in the power sector, and conditions will be created to improve the reliability of heat supply under the new draft Law on Heat and Power Industry.

"An audit of all thermal power plants in the country has been completed. Necessary repairs will be carried out this year," Smailov concluded.

 As you may recall, the heating networks and water supply networks in Kazakhstan are significantly worn out. The current heating season has been difficult in several regions of Kazakhstan. A series of accidents during the current heating season in Ekibastuz, Rudnyi, and Ridder have left citizens without heat in the cold season. Just a few days ago, on 16 April, residents of Stepnogorsk and Ekibastuz once again were left without heating.

Today at the meeting Akim of Akmola region Ermek Marzhikpaev commented on the situation at Stepnogorsk CHP. Part of the networks, the most difficult areas we have taken on the balance of the state, our city.

"And today we have agreed with the government on the allocation of funds to first of all tighten these weak spots", - said the akim.

"Part of the networks, the most difficult areas we took on the balance of the state, our city. And today we have agreed with the government to allocate funds to first of all pull up these weak spots", - said the akim.

Also, according to him, the owner of the CHP will use its own sources of funding and repair networks.

Earlier, President Kassym-Jomart Tokayev criticized government agencies and owners of energy facilities for improper work in preparation for the heating season. He ordered the government to swiftly approve legislative amendments on electricity issues.

Currently, Samruk-Energo is preparing a feasibility study for a new combined heat and power plant in Semey. And the founders of Petropavlovsk CHP-2 have increased funding for modernization to 9 billion KZT. Another 3 billion KZT will be allocated for upgrading heat and power networks.

The situation with the Ridder CHPP is complicated. The akim of East Kazakhstan region Daniyal Akhmetov accused the new owners of Ridder CHP of inaction. Negotiations to transfer the company into state ownership have also stalled.