Committed to Deliver: Monopolies to Refund Over 23 Billion Tenge to the Public for Non-Compliance in Water Supply and Sanitation
The Committee for Regulation of Natural Monopolies under the Ministry of National Economy of the Republic of Kazakhstan has summarized the execution results of tariff estimates and investment programs in the water supply and sanitation sectors for 2023. The review revealed that a number of Natural Monopoly Entities (NMEs) failed to meet their obligations to consumers, resulting in unutilized funds initially factored into the tariffs.
Pursuant to the Law "On Natural Monopolies," all NMEs report annually by May 1 to the regulator on the expenditure of tariff estimate funds and the implementation of investment programs. Within 60 days, the Committee analyzes the submitted data and assesses the efficiency of investment utilization. If obligations are unmet, the regulator applies a temporary compensatory tariff (TCT) mechanism: service rates are reduced, and unspent funds are returned to consumers via lower tariffs.
Based on the results for 2023, a total of 23.1 billion KZT will be compensated to the public—three times more than the previous year. The vast majority of the amount (22.3 billion KZT) is in the water supply sector, while an additional 0.8 billion KZT will be refunded for sanitation services.
At the same time, the sector demonstrates stable growth in capital investments, indicating a gradual strengthening of its material base. For January–October 2025, investments reached 422.4 billion KZT compared to 409.8 billion KZT in the same period of 2023. Water supply accounted for the lion's share at 328.8 billion KZT, while sanitation received 76.7 billion KZT. By the end of 2024, total investments amounted to 598.6 billion KZT, which is 23% higher than in 2022; investments in water supply reached 410 billion KZT, and in sanitation—146.2 billion KZT.
The growth in capital investments signifies equipment modernization, network infrastructure development, and enhanced reliability of water supply and sanitation systems. Simultaneously, the TCT mechanism ensures the return of funds to consumers and incentivizes monopolies to conscientiously execute their investment programs. Thus, regulatory policy balances the protection of public interests with creating conditions for sustainable utility infrastructure renewal.
