How to reduce losses in the energy sector of Tajikistan

Sergey Kondratiev, Deputy Head of the Economic Department of the Institute for Energy and Finance, commented to the radio station Sputnik Tajikistan on increasing Barki Tojik’s electricity supplies to Afghanistan and Uzbekistan.

Barki Tojik's debts totaling 5 billion somoni ($ 442 million) have been written off by the Government of Tajikistan as part of the company's financial recovery program. It also became known that the energy holding has signed agreements with the electric power companies of Afghanistan and Uzbekistan for the electricity supply on 2021.

“Barki Tojik is trying to improve its positions in foreign markets, last year the company was forced to cut exports several times and actually refuse to fulfill contractual obligations due to low water content in rivers and a shortage of electricity for the domestic market," Kondratiev said.

According to the expert, today's plans to significantly increase exports to Afghanistan and negotiations with Uzbekistan are mainly just an "effect of base". This year, the rivers are expected to be well filled, that will increase the generation of electricity, which will have to be sold somewhere.

Barki Tojik is interested in exporting electricity to its neighbors, because prices on the domestic market are significantly lower. There is also no problem of non-payments, the company receives payments from its foreign counterparties on time.

Nevertheless, the problem of the internal market remains; the power supply to consumers has not been fully restored.