Just like a year ago, when taxes were rised several times, the Kyrgyz government again surprised everyone by skyrocketing the prices for electricity and heating! Starting January 1, 2010, all customers must pay 1.5 som per one kilowatt/hour of electricity, twice more than before (0.7 som). Beginning from Junly 1, 2010, the price for electricity will be raised up to 1.9 som per one kilowatt/hour!

But this is nothing compared to prices for heating and hot water. Now, customers are paying 507 som per one gigacalorie. Beginning January 1, 2010, we start paying 1050 som, and starting July 1, 2010, it will raised up to 2.5 thousand som per one gigacalorie!

As it was expected, populations reaction to hiking prices was negative. Members of famous internet forum Diesel have been discussing [ru] the issue for many days. Looking though the replies in the thread, you barely find a message that supporsts the decision of the government. Several people even started talking of moving to another country, as they are doomed in case they stay in Kyrgyzstan - they just cannot afford the prices for heating and hot water. If internet users cannot pay the prices (average age of internet users is comparatively young), what about retired old people, whose only income is their state pension of about 2000 som per month?! Yes, the government is thinking of adding 200 som to pensions, but it is nothing comparing to new prices for utilities.

The new prices coincided with the new prime minister - Daniyar Usenov, a person widely acknowledged as a statesman, who first thinks of his own wellbeing. Well, it might not be true, but this what you notice surfing all internet forums and blogs. And many have an idea that it was Usenov, who initiated the raising of prices for utilities. I guess this cannot be true, as one physically can’t plan such a widescale reform of utility prices in such a short period of time. However, many people still think that Usenov is the author of new prices. And Usenov never was a good public speaker - during his speech in the Parliament concerning new utility prices, he assured everyone that “when electricity prices will be 1.5-2 som [per kilowatt/hour], children will learn switching off the light in toilets… as it will cost money.” I guess many will agree with me that this is not the best argument that could be given by the prime minister. He could have done better. Well, maybe therefore today Mr. Usenov’s pupularity is so much down as it never was before.

Plus, there is a news that says that the idea of new prices was promoted by World Bank that wants the Kyrgyz government to set prices close to prime cost, and achieve self-sustainability of energy sector of Kyrgyzstan. The Kyrgyz government had to accept conditions of WB ro raise prices in return to promised loans and grant money to fix its almost dead heating stations in Bishkek and Osh, two major cities in the country. My friend, who used to work with the (todays) Energy Ministry, explained that it is unpopular, but very needed step, otherwise energy sector, expecially heating stations, of Kyrgyzstan would be doomed in near future. He also thinks that it is possible that the Kyrgyz government cancels the plan to hike prices in Jule 1, 2010, because, first, it might be just a promise to WB, second, significat part of population, especially retired people and families with many children, cannot afford the prices.

Whatever the reason was to raise the utility prices, the government could have done a better job in PRing it, in preparing public mind so that reactions would be milder.