Sustainable heat supply plays a critical role in Kazakhstan, which is located in a sharp continental climate zone, where temperatures can reach below 40-50 degrees Celsius in the northern regions during the winter. Although considered part of the energy sector, heat power industry is a separate segment of Kazakhstan's economy, with specific economic, technical, social characteristics and relations.
There is currently no unified legislation regulating technical, commercial and economic aspects of heat power industry in Kazakhstan. Some issues of heat power industry are partially regulated by the Law of the Republic of Kazakhstan dated July 9, 2004 No. 588-II "On Electric Power Industry" (hereinafter – the “Electric Power Industry Law”), and technological issues of production, transmission and supply of heat power are not fully reflected and for the most part are indicated in conjunction with electric power. Some norms of the Electric Power Industry Law are not applicable and provide, inter alia, safety requirements for the operation of equipment of thermal power plants and boiler houses, design and operation of heat supply facilities and heat networks at an insufficient level. Measures defined in the Law on Electric Power Industry for prevention and elimination of emergency situations are also not applicable to the sphere of heat power industry, as they are intended to solve problems in the unified electric power system of the Republic of Kazakhstan.
No less important is the fact that there is no single authorized body for the industry. For instance, the Ministry of Energy is responsible for heat sources in public district heating systems and in centralized systems of autonomous heat supply, while the Ministry of Industry and Infrastructure Development is in charge of heat supply within settlements (except for CHP and boiler houses that produce heat in the district heating zone).
In order to eliminate the aforementioned gaps and establish a full-fledged legal framework for the regulation of heat power industry, the Ministry of Energy has developed a draft law "On Heat Power Industry" (hereinafter - the “Draft Law”), which is currently under consideration in the Majilis of Parliament.
Unicase LLP was directly involved in the development of the Draft Law, amendments to related legislation and bylaws, as well as provided assistance in conducting the necessary expertise in accordance with the Lawmaking Rules of the Government of the Republic of Kazakhstan (Decree No. 907 of the Government of the Republic of Kazakhstan dated December 29, 2016).