Summary: Kazakhstan Electricity Grid Operating Co. (JSC)

In December 2018, the regulator announced it would freeze KEGOC's transmission tariffs for 2019, although it previously approved 10% growth for the 2016-2020 regulatory period. We believe the regulator aims to compensate for increases in electricity prices for end consumers following introduction of the capacity market in Kazakhstan from Jan. 1, 2019. This supports our view that regulation in Kazakhstan remains unpredictable and politicized. KEGOC's S&P Global Ratings-adjusted EBITDA for the first six months of 2018 amounted to Kazakhstani tenge (KZT) 46 billion (about €110 million), and we expect the company to generate EBITDA of about KZT80 billion-KZT85 billion for full-year 2018, versus KZT73.5 billion in 2017. We expect the tariff freeze will be prolonged until 2020 and forecast moderate

...In December 2018, the regulator announced it would freeze KEGOC's transmission tariffs for 2019, although it previously approved 10% growth for the 2016-2020 regulatory period. We believe the regulator aims to compensate for increases in electricity prices for end consumers following introduction of the capacity market in Kazakhstan from Jan. 1, 2019. This supports our view that regulation in Kazakhstan remains unpredictable and politicized. KEGOC's S&P Global Ratings-adjusted EBITDA for the first six months of 2018 amounted to Kazakhstani tenge (KZT) 46 billion (about 110 million), and we expect the company to generate EBITDA of about KZT80 billion-KZT85 billion for full-year 2018, versus KZT73.5 billion in 2017. We expect the tariff freeze will be prolonged until 2020 and forecast moderate EBITDA of KZT70 billion-KZT75 billion in 2019-2020....

Summary