Minister of Energy of Uzbekistan, Jurabek Mirzamakhmudov, in an interview with UzReport TV, spoke about the increase in tariffs for electricity and gas.
He emphasized that since the tariff rates do not cover all the costs of production, transportation, and distribution of gas and electricity, large subsidies are allocated from the state budget.
The head of the Ministry of Energy noted the attraction of investments in the sphere of energy resource generation. However, investors are currently not willing to invest in the system of electricity transportation, distribution, and delivery to consumers "due to low tariffs".
"The reason is that the payback period of the invested funds is too long... Some calculations have shown a payback period not in 10-15 years, but over 30-40 years. Therefore, the increase in tariffs is one of the steps to solve this issue," he stated.
Jurabek Mirzamakhmudov pointed out that the import of gas was also taken into account when determining the tariffs.
"When determining the tariffs, I will say it again, compensation for part of the expenses was taken into account, as well as the costs of natural gas import. We import electricity from Turkmenistan and in summer from Kyrgyzstan and Tajikistan. Tajikistan's tariffs have not changed compared to previous years, while Turkmenistan's have slightly increased compared to last year. Calculations have been made and all this has been taken into account," he said.
In the formation of electricity tariffs, the import of gas was considered as the main factor, which is used to produce up to 80% of electricity, as well as mazut.
The Minister noted that 85% of gas fields in Uzbekistan are depleted, which requires the construction of compressor stations, leading to "additional capital expenditures, additional time, and this affects the cost price".
According to reports, Uzbekistan has turned into a net gas importer. In 2023, the cost of gas imports amounted to 694.9 million dollars, increasing by 2.5 times in a year, and for the first quarter of this year - 360.2 million dollars.
Jurabek Mirzamakhmudov stated that there are no plans to revise the basic (social) norms of gas and electricity consumption at the moment.
When asked how much of the cost is covered by the new tariffs and when the subsidization of energy resources from the state budget will stop, the Minister replied, "We are working in two directions. Yes, the increase in tariffs compensates for part of the expenses, but the optimization of our costs, for which we have clear target parameters, is already the second task. We will look at these two parameters as we balance them."
The government is providing assistance to around 1.5 million needy families due to the tariff increase, including one-time payments in the heating season and compensations.
The Ministry of Economy and Finance noted that since the last tariff increase in August 2019, inflation has reached 66%. The head of the department, Khurshed Mustafaev, stated the costs of electricity and gas before the tariff increase, including operating expenses of enterprises, investment projects, and loan repayment.
Energy expert Ravshan Khuzhanov, working in Germany, urged the government to disclose the entire cost chain of energy resources so that consumers can understand how the final price is formed.
