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KEGOC: Uzbekistan Will not Pay Fine, Continues to Take Electricity

Monday 3 December 2012

ASTANA (KEGOC press service) – The Kazakh Electrical Grid Operating Company (KEGOC) this week refuted reports that Uzbekistan agreed to pay $15 mln in fines for illegally siphoning off excess electricity from the three-way grid shared by Kazakhstan, Uzbekistan, and Kyrgyzstan. KEGOC adds no progress has been made with Uzbekistan in power grid talks.

Uzbekistan has continued to illegally take electricity, the power operating grid said in a statement released Wednesday. “Uzbekistan continues to violate the agreed schedule of interstate power flows,” KEGOC said, adding that the Uzbek government owes $35 mln for this excess take.

KEGOC complaints that from the beginning of the running autumn-winter period the Uzbekistan Power System continues to break the schedule of approved interstate power flows on the border of the Kazakhstan UPS and Integrated Power System (IPS) of Central Asia. During secondary peak the unauthorised power take-off comes to 650 MW; and during night hours the unscheduled delivery amounts to 1050 MW. According to Kazakh National Dispatch Centre of the System Operator, the unauthorised electricity take-off by the Uzbek Power System from the Kazakhstan UPS amounts to 25 GWh as of 28 November 2012.

For KEGOC, unbalanced operation of the Uzbek Power System adversely effects operation mode of the IPS of Central Asia; also this leads to peak load of Kazakhstan North-South Transit threatening its breakage and blackout in the southern region.

Tensions have been rising between the two states over the power grid. Kyrgyzstan, however, stands to lose the most if Kazakhstan leaves the grid – which has promised to do – which would result in Kyrgyzstan losing up to 40% of its power source. The Kyrgyz government has been organizing talks between the two sides to resolve the issue, which so far have yielded no agreements.

Established in1997, KEGOC is the national transmission grid operator for Kazakhstan. All of KEGOC’s shares are held by the state-owned holding company Samruk-Kazyna. Fitch rates KEGOC as BBB+ with stable outlook.

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