The issues of optimization and improving management effectiveness in the energy sector of the Kyrgyz Republic

Energy sector is a priority sector of the Kyrgyz economy. At the same time, this sphere is in a crisis situation and is characterized by many ongoing crisis trends. The article identifies the problematic issues of the state energy policy of Kyrgyzstan, analyzes the causes of the crisis situation and explores a wide range of causes and trends that have caused such critical situation in the industry. In particular, the analysis of the effectiveness of mechanisms for managing the energy system in Kyrgyzstan is being conducted, the development of the management system of the energy system is being investigated, and a general analysis of the current state of the industry is given. The paper considers the effectiveness of management in the light of the reforms which took place in 2015-2016. These reforms, namely, the processes associated with the liquidation of the Ministry of Energy and Industry and the transfer of functions for the implementation of energy policy to other government authorities (the Ministry of Economy and then to the Committee on Industry, Energy and Subsoil Use), and the creation of the “National Energy Holding Company”, which is in fact began to perform the functions of a transfer link between energy companies and the state. The main focus of the research is aimed at analyzing such crisis phenomena and trends as the issue of the inconsistency/con- tradiction of the state tariff policy to the existing market conditions, when due to non-economic reasons (elections, populism), tariffs are unreasonably underestimated, and to issues of the functional effectiveness of the energy sector management in Kyrgyzstan and existing systematic management mistakes, in a combination with a low tariff policy, have led to a large deficit in the industry, to lack of its investment attractiveness and significant wear of the equipment and networks.