Regulatory Support for Central Asia

The National Association of Regulatory Utility Commissioners (NARUC) in cooperation with the U.S. Agency for International Development (USAID) has established a new Central Asia Partnership within its Energy Regulatory Partnership Program (ERPP). This partnership is designed to strengthen the capacity of energy sector regulatory authorities in effectively providing acute oversight of utilities and subsequently attracting investment while protecting consumers’ interests. The partnership will achieve these goals through providing technical assistance and capacity building to regulatory agencies and relevant ministries in the region to move toward transparent and cost-reflective energy pricing. It will help countries review and improve vulnerable customer policies, support the advancement and development of energy markets, and, where possible, support the capacity and independence of regulators.

Partner Countries

The Central Asia Energy Regulatory Partnership countries include Kazakhstan, Uzbekistan, the Kyrgyz Republic, Tajikistan, and Turkmenistan. These former Soviet republics share similar energy challenges related to infrastructure, cost-reflective tariffs and subsidies, and regulatory independence.

Project Duration

June 2020-June 2022, pending extension of the period of performance of the ERPP Cooperative Agreement with USAID, which currently concludes August 2021.

Objectives

NARUC partnerships are designed to be vehicles for long-term capacity building and promote the sharing of experience between regulators, providing a platform for peer-to peer and practical information exchange. NARUC is able to offer not only experts from utility commissions around the U.S. but also independent system operators, regional transmission organizations, utilities and other energy sector stakeholders in order to give a 360-degree perspective on regulatory issues. NARUC also has a strong network of regulators around the world that participate in and contribute to partnership activities, increasing the pool of practical expertise that can be accessed for various peer-to-peer platforms.

Bilateral country partnerships will provide tailored capacity building and technical support to assist national regulators and relevant ministries in building regulatory systems to support an enabling environment for investment in the energy sector. This will be achieved through developing foundational documents and providing targeted and context-specific trainings.

Regional workshops and trainings will be used to provide all regional counterparts with an overview of best practices in key regulatory areas and develop a common understanding among national regulators and other key decision makers. These regional workshops will focus on common issues of interest from these partners, providing a general overview that lays the groundwork for more technical and tailored bilateral engagements, and provide a forum for convening energy regulators and decision makers of the region that might not otherwise have the opportunity to interact.

Goals to Achieve

The overarching objective of the partnership is to enable regulatory agencies and ministries in the region to build robust regulatory frameworks that incentivize investment in the energy sector though transparent and cost-reflective pricing and market mechanisms, while ensuring customer interests are protected. Whenever possible, NARUC will support the overall capacity building and independence of regulators. It is through these ends that Central Asian regulators will have the tools and necessary resources available for them to continue their own policies of self-reliance. Allowing these agencies to operate independently will drive local solutions and create enduring policies that strengthen capacities and accelerate development of their energy sector.

CONTACTS

USAID                                                                      NARUC

Dorian Mead, USAID/E3/Energy Division               Erin Hammel
Agreement Officer’s Representative                       NARUC Director
dmead@usaid.gov                                               EHammel@naruc.org
 

Lora Kudaibergenova, USAID/Central Asia              David Bloom

Project Management Specialist                               NARUC Program Manager

lkudaibergenova@usaid.gov                                     DBloom@naruc.org