Kazakhstan
Public utilities in Kazakhstan include heating, water supply, sewerage, electricity and communications systems.
Heating systems
- They are mainly represented by centralized networks, with the exception of some rural areas.
- Various types of fuels are used, including coal, natural gas and fuel oil.
- Many systems need to be upgraded to increase their efficiency and reduce their environmental impact.
Water supply systems
- They provide the population with drinking and industrial water.
- The sources of water are rivers, lakes and groundwater.
- The level of water quality in some regions is of concern.
- It is necessary to increase the efficiency of water resources use and improve water quality.
Sewerage systems
- Wastewater is diverted from residential and industrial facilities.
- The level of wastewater treatment in some regions does not meet modern standards.
- Sewerage systems need to be expanded and upgraded to protect the environment.
Power supply
A report by the European Bank for Reconstruction and Development (EBRD) notes that additional investments are needed to improve the efficiency and reliability of these systems.[13]
The analysis conducted by the EBRD revealed a number of problems faced by heating, water supply and sewerage systems in Kazakhstan.
The report also provides examples of cities where networks are being upgraded with the support of the EBRD. These projects demonstrate how the introduction of modern technologies can improve the efficiency, reliability and environmental friendliness of heating, water supply and sewerage systems.
Upgrading infrastructure is not just a matter of convenience. It is of vital importance for public health, environmental protection and ensuring the sustainable development of the economy of Kazakhstan.
In most cases, public utilities in Kazakhstan are state-owned, which means that their activities are directly regulated by akimats. This creates a system with an administrative nature of relations, where the authorities have the authority to issue mandatory instructions for these companies.
- It is provided by power plants running on various types of fuels, including coal, natural gas, hydropower and nuclear energy.
- There are problems with power outages, especially in rural areas.
The influence of the state on the activity
Proponents of such a system emphasize that it allows the authorities to directly influence the commercial activities of public utilities, ensuring their compliance with state interests. This can be expressed in:
- Tariff control: Akimats can set tariffs for housing and communal services, making them accessible to the public.
- Ensuring the quality of services: The State can influence the standards of service by ensuring the provision of public services of appropriate quality.
- Implementation of social programs: Public utilities can participate in social programs aimed at supporting vulnerable segments of the population.
Limitations of State control
However, such a system has its drawbacks. Excessive government intervention can lead to:
Resource efficiency:
Despite these limitations, utilities within the framework of this system can demonstrate high efficiency in the use of labor resources and management costs.[13]
Residents of Kazakhstan receive water, sewerage and heating from companies recognized by the state as natural monopolies. This means that there is no competition in these areas, and tariffs are set by a special state body – the Committee for Regulation of Natural Monopolies, Competition and Consumer Protection (CRNM and CP).[14][15]
In order to ensure the smooth operation of public utilities, the state also controls the investment programs of monopolistic companies. This is handled by the Committee on Construction and Housing and Communal Services. Such a system allows you to regulate prices for utilities and direct investments to infrastructure development.[16] However, this system also has its disadvantages.
The EBRD
2017 was marked by a new round of cooperation between Kazakhstan and the European Bank for Reconstruction and Development (EBRD). The parties signed a three-year agreement with the aim of working together to modernize the country's infrastructure.
As part of this agreement, the EBRD will allocate funds for the implementation of a number of important projects aimed at:
In addition to these two key areas, the EBRD will continue to support other initiatives aimed at improving the well-being of citizens of Kazakhstan.[13]
- Improving urban infrastructure: Upgrading water supply, sewerage, heating and other vital facilities will be a priority.
- Optimization of customs procedures: Joint efforts will be made to simplify customs processes, which should lead to stimulating trade and accelerating economic growth.
Heating systems
- They are mainly represented by centralized networks, with the exception of some rural areas.
- Various types of fuels are used, including coal, natural gas and fuel oil.
- Many systems need to be upgraded to increase their efficiency and reduce their environmental impact.
Water supply systems
- They provide the population with drinking and industrial water.
- The sources of water are rivers, lakes and groundwater.
- The level of water quality in some regions is of concern.
- It is necessary to increase the efficiency of water resources use and improve water quality.
Sewerage systems
- Wastewater is diverted from residential and industrial facilities.
- The level of wastewater treatment in some regions does not meet modern standards.
- Sewerage systems need to be expanded and upgraded to protect the environment.
Power supply
A report by the European Bank for Reconstruction and Development (EBRD) notes that additional investments are needed to improve the efficiency and reliability of these systems.[13]
The analysis conducted by the EBRD revealed a number of problems faced by heating, water supply and sewerage systems in Kazakhstan.
The report also provides examples of cities where networks are being upgraded with the support of the EBRD. These projects demonstrate how the introduction of modern technologies can improve the efficiency, reliability and environmental friendliness of heating, water supply and sewerage systems.
Upgrading infrastructure is not just a matter of convenience. It is of vital importance for public health, environmental protection and ensuring the sustainable development of the economy of Kazakhstan.
In most cases, public utilities in Kazakhstan are state-owned, which means that their activities are directly regulated by akimats. This creates a system with an administrative nature of relations, where the authorities have the authority to issue mandatory instructions for these companies.
- It is provided by power plants running on various types of fuels, including coal, natural gas, hydropower and nuclear energy.
- There are problems with power outages, especially in rural areas.
The influence of the state on the activity
Proponents of such a system emphasize that it allows the authorities to directly influence the commercial activities of public utilities, ensuring their compliance with state interests. This can be expressed in:
- Tariff control: Akimats can set tariffs for housing and communal services, making them accessible to the public.
- Ensuring the quality of services: The State can influence the standards of service by ensuring the provision of public services of appropriate quality.
- Implementation of social programs: Public utilities can participate in social programs aimed at supporting vulnerable segments of the population.
Limitations of State control
However, such a system has its drawbacks. Excessive government intervention can lead to:
Resource efficiency:
Despite these limitations, utilities within the framework of this system can demonstrate high efficiency in the use of labor resources and management costs.[13]
Residents of Kazakhstan receive water, sewerage and heating from companies recognized by the state as natural monopolies. This means that there is no competition in these areas, and tariffs are set by a special state body – the Committee for Regulation of Natural Monopolies, Competition and Consumer Protection (CRNM and CP).[14][15]
In order to ensure the smooth operation of public utilities, the state also controls the investment programs of monopolistic companies. This is handled by the Committee on Construction and Housing and Communal Services. Such a system allows you to regulate prices for utilities and direct investments to infrastructure development.[16] However, this system also has its disadvantages.
The EBRD
2017 was marked by a new round of cooperation between Kazakhstan and the European Bank for Reconstruction and Development (EBRD). The parties signed a three-year agreement with the aim of working together to modernize the country's infrastructure.
As part of this agreement, the EBRD will allocate funds for the implementation of a number of important projects aimed at:
In addition to these two key areas, the EBRD will continue to support other initiatives aimed at improving the well-being of citizens of Kazakhstan.[13]
- Improving urban infrastructure: Upgrading water supply, sewerage, heating and other vital facilities will be a priority.
- Optimization of customs procedures: Joint efforts will be made to simplify customs processes, which should lead to stimulating trade and accelerating economic growth.
Indonesia
Perusahaan Listrik Negara (PLN) is the national electricity company of Indonesia.[21] It holds a monopoly on electricity distribution in Indonesia. With over 90 million customers, it is one of the world's largest electricity companies.[22][21]
United Kingdom and Ireland
In the United Kingdom and Ireland, the state, private firms, and charities ran the traditional public utilities. For instance, the Sanitary Districts were established in England and Wales in 1875 and in Ireland in 1878.
The term can refer to the set of services provided by various organizations that are used in everyday life by the public, such as: electricity generation, electricity retailing, electricity supplies, natural gas supplies, water supplies, sewage works, sewage systems and broadband internet services.[23] They are regulated by Ofgem, Ofwat, Ofcom, the Water Industry Commission for Scotland and the Utility Regulator in the United Kingdom, and the Commission for Regulation of Utilities and the Commission for Communications Regulation in the Republic of Ireland. Disabled community transport services may occasionally be included within the definition. They were mostly privatised in the UK during the 1980s.
United States
The first public utility in the United States was a grist mill erected on Mother Brook in Dedham, Massachusetts, in 1640.
In the U.S., public utilities provide services at the consumer level, be it residential, commercial, or industrial consumer. Utilities, merchant power producers and very large consumers buy and sell bulk electricity at the wholesale level through a network of regional transmission organizations (RTO) and independent system operators (ISO) within one of three grids, the Eastern Interconnection, the Texas Interconnection, which is a single ISO, and the Western Interconnection.
U.S. utilities historically operated with a high degree of financial leverage and low interest coverage ratios compared to industrial companies. Investors accepted these credit characteristics because of the regulation of the industry and the belief that there was minimal bankruptcy risk because of the essential services they provide. In recent decades several high-profile utility company bankruptcies have challenged this perception.[24]
Monopoly vs. competition
Public utilities were historically regarded as natural monopolies because the infrastructure required to produce and deliver a product such as electricity or water is very expensive to build and maintain. Once assets such as power plants or transmission lines are in place, the cost of adding another customer is small, and duplication of facilities would be wasteful.
Monopoly vs. competition
Public utilities were historically regarded as natural monopolies because the infrastructure required to produce and deliver a product such as electricity or water is very expensive to build and maintain. Once assets such as power plants or transmission lines are in place, the cost of adding another customer is small, and duplication of facilities would be wasteful.[25] As a result, utilities were either government monopolies, or if investor-owned, regulated by a public utilities commission.[26][27]
In the electric utility industry, the monopoly approach began to change in the 1990s. In 1996, the Federal Energy Regulatory Commission (FERC) issued its Order No. 888, which mandated that electric utilities open access to their transmission systems to enhance competition and "functionally unbundle" their transmission service from their other operations. The order also promoted the role of an independent system operator to manage power flow on the electric grid.[28][29]
Ownership structure
Public utilities can be privately owned or publicly owned. Publicly owned utilities include cooperative and municipal utilities. Municipal utilities may actually include territories outside of city limits or may not even serve the entire city. Cooperative utilities are owned by the customers they serve. They are usually found in rural areas. Publicly owned utilities are non-profit. Private utilities, also called investor-owned utilities, are owned by investors,[34][35][36] and operate for profit, often referred to as a rate of return.
Regulation
A public utilities commission is a governmental agency in a particular jurisdiction that regulates the commercial activities related to associated electric, natural gas, telecommunications, water, railroad, rail transit, and/or passenger transportation companies. For example, the California Public Utilities Commission (CPUC)[37] and the Public Utility Commission of Texas regulate the utility companies in California and Texas, respectively, on behalf of their citizens and ratepayers (customers). These public utility commissions (PUCs) are typically composed of commissioners, who are appointed by their respective governors, and dedicated staff that implement and enforce rules and regulations, approve or deny rate increases, and monitor/report on relevant activities.[38]
Ratemaking practice in the U.S. holds that rates paid by a utility's customers should be set at a level which assures that the utility can provide reliable service at reasonable cost.[39]
Over the years, various changes have dramatically re-shaped the mission and focus of many public utility commissions. Their focus has typically shifted from the up-front regulation of rates and services to the oversight of competitive marketplaces and enforcement of regulatory compliance.
