Tag Archives: revenue

Electricity prices increase in Azerbaijan

JULY 15 2016 (The Conway Bulletin) — Azerbaijan’s government said that it is considering an increase in electricity prices for households of 16.7%, local media reported. The price will increase from 0.06 manat to 0.07 manat/kWh. This is the first price increase since 2007. Domestic electricity prices in the South Caucasus are sensitive. People in Armenia and Georgia have demonstrated against tariff increases over the past few years.


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(News report from Issue No. 290, published on July 22 2016)

Kazakh oil revenues fall

JUNE 15 2016 (The Conway Bulletin) – Kazakh officials said production of oil and gas makes up around 17% of the country’s GDP, a proportion eight percentage points lower than in 2015. The fall in oil prices has impacted both feasibility and profitability at Kazakhstan’s oil and gas fields. This is an important measure of the impact of the drop in oil price on Kazakhstan’s economy.


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(News report from Issue No. 285, published on June 17 2016)


Georgia to receive pipeline fees

MAY 20 2016 (The Conway Bulletin) — Georgia’s PM Giorgi Kvirikashvili said that he hopes to receive 1b cubic metres of gas annually as payment in-kind for the transit of Azerbaijani gas through Georgia via the Southern Gas Corridor. Azerbaijan will pump 16b cubic metres of gas through a network of pipelines, called the Southern Gas Corridor, to Europe. The project will be completed in 2019.


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(News report from Issue No. 282, published on May 27 2016)

Georgia charges transit fee

APRIL 8 2016 (The Conway Bulletin) – After months of negotiations, Georgia and Russia’s Gazprom retained a deal that will give Georgia 10% of Gazprom’s gas throughput to Armenia. The deal was heralded by the Georgian side as a victory. They said that Gazprom had wanted Georgia to charge it a transit fee for hosting a pipeline to Armenia and then pay for its own gas.


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(News report from Issue No. 276, published on April 15 2016)


Kazakhstan lowers export duty

FEB. 15 2016 (The Conway Bulletin) – Kazakhstan will lower its oil export duty in March, Yerbolat Dossayev, minister of economy, said. He said the export duty will now be lowered to $30/tonne from $40/tonne. Mr Dossayev also said that the export tax would be scrapped altogether if the price of oil falls below $25/barrel. Oil producers in Kazakhstan have stopped producing oil because of high export taxes and low prices.


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(News report from Issue No. 268, published on Feb. 19 2016)


Tajikistan cuts electricity exports

DEC. 8 2015 (The Conway Bulletin) – Tajikistan’s public utilities company Barqi Tojik said it had stopped exporting electricity to Kyrgyzstan and Afghanistan because of a seasonal shortage of supply, showing the weakness of Tajikistan’s power generating infrastructure.

The decision to halt exports also poses major questions over Tajikistan’s plans to become a regional power exporter. Only last week, foreign ministers from the countries involved in the CASA-1000 project signed a final agreement in Istanbul which should power the project forward.

The CASA-1000 project will link Tajikistan and Kyrgyzstan to Pakistan, which is short in power, via Afghanistan.

The export cut by Barqi Tojik is a routine measure to satisfy domestic demand during the peak winter season but the company said hydro-power plants suffered from lower- than-normal production this year.

“Water levels are today roughly 10% lower than last year,” said Barqi Tojik in a statement on Dec. 8.

For CASA-1000 to be a success, Tajikistan needs to build more hydropower capacity.

Shutting off power supplies to Afghanistan and Kyrgyzstan during the winter months highlights this issue.


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(News report from Issue No. 260, published on Dec. 11 2015)


Kazakh government to cut oil exports

NOV. 23 2015 (The Conway Bulletin) – In a move designed to help oil exporters, the Kazakh government said it would cut export duty on a tonne of oil to $40 from $60. Some exporters in Kazakhstan have simply stopped production until either oil prices improved or taxes were cut.


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(News report from Issue No. 258, published on Nov. 27 2015)

Kazakhstan to cut in tax for oil producers

SEPT. 29 2015 (The Conway Bulletin) – The Kazakh government has said it is considering cutting taxes for oil producers to encourage them to raise output. Some energy companies operating in Kazakhstan, especially the smaller ones, have said they will not produce oil until prices recover. Kazakhstan has cut its projected oil production in 2015 by 1m tonnes to 79.5m tonnes.


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(News report from Issue No. 250, published on Oct. 2 2015)


Georgia approves Tbilisi electricity price rise

SEPT. 3 2015, TBILISI (The Conway Bulletin) — Following earlier electricity price rises in Georgia’s regions, the state regulators approved a similar price increase in the capital.

For the Georgian Dream, the ruling coalition, the price rise means they have barely been able to fulfil one of their promises from the 2012 parliamentary election – to cut the price of electricity and to keep it low.

But, as Akaki Tsomaia, economics professor at the University of Georgia explained, the plunging value of the lari had forced the regulators to agree to the price rise.

“Georgia is experiencing a 45% depreciation of its currency against the US dollar. Electricity and gas providers in Georgia have no other way than to increase the price of these services. Otherwise we will definitely have a major electricity shortage,” he told the Bulletin.

Still, this assessment, which is widely shared, didn’t stop the opposition UNM party blaming the coalition.

“The absence of professionalism led us to this point,” UNM’s deputy chairperson Nika Melia told TV broadcaster Rustavi-2.

Electricity prices have triggered protests in the region, most notably in Armenia where thousands protested earlier this year and forced the government to waive price rises.

In Georgia which is known for its street level politics, however, the population seems to have accepted the rise more quietly although some people did expect protests shortly.

Vladimir, an IT specialist walking along Tbilisi’s central promenade said: “People will probably start next month once they get bills.”

Irakli, 37, who was waiting at a bus stop, agreed but he said that politics, was the key driver of social unrest.

“We’ve taken to the streets so much in the recent two decades, but for other reasons,” he said. “But it all accumulates and only needs one non- social spark to explode.”


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(News report from Issue No. 247, published on Sept. 11 2015)

Georgian electricity price rises approved

TBILISI, JULY 22 2015 (The Conway Bulletin) — Georgian state regulators approved a price increase for electricity, a rise that will irritate consumers and also the power companies who said the rise was not enough to cover the cost of production.

Electricity prices have become a major political issue across Central Asia and the South Caucasus because falling local currencies have forced up the cost of imports needed to fuel power stations.

In Armenia, thousands of people have protested for weeks about a sharp increase in electricity prices.

Perhaps mindful of the political fallout, Georgia’s regulators tried to limit price increases. The price rises appear to vary enormously between 2% and 30% depending on consumers’ overall annual use.

Zurab Gelenidze, CFO of Georgian Industrial Group, said the price rises were not enough. “The sustainability of the entire system will become questionable,” he told media.

Also reacting to the price rises, PM Irakli Garibashvili said the government would give out subsidies to some lower income families.


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(News report from Issue No. 241, published on July 23 2015)