Rising water and heating costs observed in Mangystau
Utility Tariff Increases Announced in Kazakhstan
Starting from August 1, 2025, utility tariffs for water, heat energy, sewage, drinking water, technical water, hot water, and wastewater disposal will see an increase in Kazakhstan. The changes, approved by the government, aim to align tariffs with market conditions and address long-term underinvestment in public utilities.
The tariff for hot water has been increased to 180.39 tenge per 1 cubic meter, while the tariff for the service of transmitting and distributing heat energy will now cost 1249.89 tenge per 1 Gcal. The tariff for technical water has risen to 65.96 tenge per 1 cubic meter, and the tariff for the supply of drinking water through distribution networks has increased to 149.18 tenge per 1 cubic meter. The tariff for wastewater disposal, separate from the tariffs for water, heat energy, and sewage, has increased from 85.67 to 88.60 tenge per cubic meter.
The initial plan was to increase tariffs by up to 35% in 2025, but the government has revised this growth rate downward to approximately 20% to ease inflationary pressure and maintain social stability. This reduction was achieved through postponing some tariff adjustments, attracting long-term financing, and re-evaluating operating costs in monopoly sectors.
The increase in utility tariffs is expected to contribute 0.82 percentage points to Kazakhstan's inflation in 2025, a decrease from the originally forecasted 1.32 percentage points. This is part of the government's broader inflation control strategy, which includes legislative reforms in financial markets and consumer protection.
Electricity tariffs have already increased by an average of 7.2% since the beginning of the year, reaching around 22.62 tenge per kWh without VAT as of July 1, 2025. Further tariff adjustments for utilities are currently paused for the fourth quarter.
The tariff changes were presented by JSC "Kaspii Jolu, Su Arnasyl" in the Department of Natural Monopolies Regulation of Mangistau Region. The increase in the wastewater disposal tariff is also due to a rise in electricity prices. The news about the increased tariffs was reported by Liter.kz with reference to Lada.kz.
This balancing act by the Kazakh government seeks to modernize utility pricing while controlling inflation and minimizing social disruption.
| Aspect | Details | |-----------------------------|-------------------------------------------------------------------------------------------------| | Cause of tariff increase | To align tariffs with market conditions, fix underinvestment, and maintain reliable utilities | | Original planned increase | Up to 35% tariff growth in 2025 | | Revised increase | Reduced to approximately 20% increase due to government intervention | | Inflation impact | Utilities contribution lowered from 1.32 to 0.82 percentage points in inflation forecasts | | Timing | No tariff increases expected in the fourth quarter of 2025 | | Example: Electricity tariff | Up by 7.2% as of July 1, 2025, at 22.62 tenge/kWh (no VAT) |
The tariff increases in various utilities such as water, heat energy, sewage, drinking water, technical water, hot water, and wastewater disposal in Kazakhstan are attributed to the government's efforts to align them with market conditions and address long-term underinvestment. The finance industry plays a role in the government's revised plan to reduce the growth rate of these tariff increases from up to 35% to approximately 20%, in an attempt to ease inflationary pressure and maintain social stability. The energy sector is also involved due to the rise in electricity prices contributing to the increase in the wastewater disposal tariff.
