Kazakhstan is set to implement a range of reforms in its energy sector with the assistance of the World Bank.

Consequently, the authorities sanctioned a series of changes, which encompass a revised method for overseeing the electric power and heating industries, to be finalized by the close of 2023. The preliminary application of these measures is scheduled for 2024, and they are anticipated to establish a foundation for broader sectoral consolidation.

“The goal of the reform is to guarantee the ongoing reliable supply of electrical and heating services, while also aiding the nation’s shift towards more environmentally friendly energy options. Asan Darbayev, the Chairman of the Committee for the Regulation of Natural Monopolies under the Ministry of National Economy of Kazakhstan, mentioned that this year will see an overhaul of the pricing policy through the adoption of innovative pricing mechanisms and a boost to the sector’s appeal for investors.”

The World Bank asserts that the effectiveness and ultimate success of these changes greatly depend on the ability to skillfully manage and execute the proposed policies, as well as to unify all regulatory duties by ensuring the participation and collaboration of key parties involved. Currently, in Kazakhstan, the oversight duties are dispersed across multiple organizations, which results in various inefficiencies.

Bearing this in mind, the bank has suggested measures to reinforce the institutional structure by consolidating all supervisory roles into a dedicated agency. This is with the goal of improving the regulation and supervision of the energy sector within the nation.

At the same time, the World Bank is active in Kazakhstan, working within the existing Country Partnership Framework, which spans from 2020 to 2025. This framework corresponds to the government’s agenda for reform and the national development strategy for the year 2050. The aim is to accelerate Kazakhstan’s evolution towards a contemporary society characterized by an economy that is diverse, reliant on knowledge, and predominantly powered by private enterprise.