Electricity Tariffs for Food Producers May Be Reduced in Kazakhstan

The Ministry of National Economy of the Republic of Kazakhstan has drafted amendments to the Pricing Rules for Socially Significant Markets. The document proposes a new state support mechanism for producers of socially important food products by reducing electricity costs.

According to the Ministry, electricity accounts for a significant share of the production cost of socially important food products. Therefore, it is proposed to allow producers to purchase electricity at a tariff that may be up to 20% lower than the current wholesale tariff.

The preferential tariff will be available to enterprises that sign a memorandum on stabilizing prices for socially important food products with either a central government authority or a local executive body. The reduced tariff will apply only to the volume of electricity used directly in the production of these goods.

The new support measure is intended for producers of bread, flour, dairy products, sugar, eggs, meat, and other products included in the list of socially important food products. Lower electricity costs are expected to reduce production expenses and help maintain stable producer prices.