The High Economic Court of Tajikistan has not yet made a final decision on the lawsuit filed by the Open Joint Stock Company (OJSC) Power Distribution Networks seeking to recover a debt of US$37 million from the Tajik Aluminum Company (TALCO).

"The claim is based on TALCO's failure to pay for electricity received in this amount," Rustam Mirzozoda, Chairman of the High Economic Court of the Republic of Tajikistan, announced at a news  conference in Dushanbe on August 1. 

According to Mirzozoda, the latest hearing on this case was postponed due to the change in leadership at the Power Distribution Networks, which did not appear in court on the scheduled date of July 15.

"During the previous process, the parties could not reach an agreement, and the hearing was postponed. Thus, the court proceedings are ongoing, and no final decision has been made yet," Mirzozoda added.

Disputes between Barqi Tojik (Tajikistan’s state-run power utility company) and TALCO over unpaid electricity bills have been ongoing since early 2020. In the summer of that year, "Barqi Tojik" management reported at a press conference that TALCO's electricity debt amounted to 415 million somonis ($39.2 million at the exchange rate set by the National Bank for that period).

At that time, TALCO issued a statement refuting the holding company's claim, asserting that "for the past five years, payment for electricity has not only been made in full but has also exceeded the billed amounts."

However, two years later, in December 2022, OJSC Power Distribution Networks (which took over electricity sales in Tajikistan following the restructuring of Barqi Tojik in 2021) filed a lawsuit.

According to the Ministry of Energy and Water Resources, TALCO is one of the largest electricity debtors in the country. As of July 1 this year, the total amount of unpaid electricity by the company reached 492.5 million somonis (over $46 million).

Despite this, TALCO receives electricity at the lowest tariffs in the country—15.57 dirams per kilowatt.  In comparison, residential customers pay 30.75 dirams, and other industrial enterprises pay 60.65 dirams per kilowatt.

Recall, OJSCs Power Distribution Networks and Power Transmission Networks were established on the basis of the national power utility company (Barqi Tojik) in summer 2020  

The process of restructuring of Barqi Tojik began in 2012 and Barqi Tojik was divided into three independent companies: (i) generation; (ii) transmission business; and (iii) distribution.

Barqi Tojik now operates just as power generation company.    

The main objective of the restructuring of Barqi Tojik is in ensuring transparency in the country’s energy system. 

The Tajik Aluminum Company (TALCO) is one of the ten largest aluminum smelters in the world and the only aluminum producing plant in Central Asia.  TALCO is wholly owned by the Tajik government.  Tajikistan does not mine alumina but imports the raw material through tolling arrangements.

Construction of the Tajik aluminum plant (TadAZ) began in 1972, and the first pouring of aluminum took place on March 31, 1975.  The Tajik aluminum smelter has a rated capacity of 517,000 tons of primary aluminum per year.

On April 3, 2007, TadAZ was officially renamed to TALCO – Tajik Aluminum Company.