State Acts to Reduce Electricity Losses

Kyrgyzstan’s electricity industry could cut its technical and commercial losses by introducing new management and handing distribution over to private companies, say NBCentralAsia analysts.



The heads of four electricity distribution companies, Severoelektro, Vostokoelektro, Jalalabatelektro and Oshelektro, were dismissed on August 14, and three days later Prime Minister Almazbek Atambaev told their replacements to cut technical and commercial losses to 32 per cent.



More than two billion kilowatt-hours were lost through technical hitches in the first half of this year, accounting for 39 per cent of total output, according to the ministry of industry, energy and fuel resources.



Commercial losses exceeded 18 per cent or one billion kilowatt-hours over the same period.



Severoelektro spokeswoman Gulia Muratalieva told NBCentralAsia that electricity theft by private consumers and industry is rife, even though the company has installed meters which cannot be tampered with.



The head of public relations at National Energy Networks, Kubanychbek Ismailov, says most losses are incurred through technical problems, but commercial theft remains “the sore point of distribution companies”.



However, public activist Bazarbay Mambetov says that a high proportion of losses are down to corruption in electricity company management and theft at power stations.



Privatising distribution companies and appointing new managers may help to obstruct the flow of electricity through the back door, he suggests.



“The problem with the Kyrgyz economy is that we cannot train and provide strategic companies with competent managers from a new generation. [Private firms] would quickly establish order in the energy sector’s finances,” he said.



(NBCentralAsia presents comments and analysis from a wide range of observers throughout the region)