Projects of Policy and Regulation Sector

2017 Update of the Kyrgyz Energy Sector Analysis

Organization: DH Infrastructure


DHI wrote a policy note in 2013, evaluating the most important challenges to the energy sector, and recommending how best to address those challenges. DHI updated this note in 2017 with data through 2016. The World Bank wanted another update of this policy note, to reflect company-specific and sector data through 2017. The update would inform the evaluation of options for the tariff path 2018-23 considered by the regulator and allow the assessment of the impact on the sector deficit. The update would provide the factual background for the continuation of the tariff reform from 2018 and inform the dialog with government and regulator in terms of reaching the goal of financial stabilization of the sector.

Service Provided

DHInfrastructure updated the policy note, which describes the sector structure and tariffs, provides a deficit forecast under several scenarios, evaluates several tariff plans for reducing the deficit, and explains the financial links between the electricity and heating sectors. DHInfrastructure also updated the underlying financial models for both the electricity and heating sectors to calculate the deficit caused by below-cost-recovery tariffs through 2017 and forecast the deficit under each proposed tariff scenario through 2023.