ALMATY, Aug 21 (NNN-KNA) – Kazakhstan’s antitrust authority, proposed state regulation of thermal coal prices, in a bid to curb monopolistic practices in the sector, and stabilise electricity tariffs, the agency said, yesterday.
The proposal has been included in the sixth package of amendments to the country’s antimonopoly legislation, which is now under consideration in parliament, according to the Agency for Protection and Development of Competition of Kazakhstan.
The wholesale market for coal, supplied to power plants in Kazakhstan, is largely monopolised, with major producer, Bogatyr Coal LLP, holding more than 70 percent of the market.
Over the past five years, the company has repeatedly raised coal prices by between five and 21.5 percent annually. In 2023, an investigation into signs of monopolistic pricing was launched, and earlier this year the Supreme Court confirmed the legality of that probe.
Rising coal prices also drive up the cost of food and utilities, where price control measures are applied, the agency said.
While state regulation currently covers the production, transmission and supply of electricity and heat, it does not apply to coal, resulting in sharp price fluctuations and cash flow gaps, for power-generating companies, according to the agency.– NNN-KNA
