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Uzbekistan to Liberalize Energy Prices and Introduce Social Consumption Norms

in Politics / Uzbekistan - by


The Uzbek government plans to liberalize energy prices and introduce social consumption norms. Deputy Minister of Energy Umid Mamadamimov announced this during a briefing in AIMK on Tuesday, referring to a Cabinet of Ministers resolution.

Starting from May 1, social consumption norms for energy resources will be set as follows:

- Electricity - up to 200 kWh per month;

- Gas (from March to October, in Karakalpakstan and Khorezm region - from March to September) - up to 100 cubic meters;

- Gas (during the heating season from November to February, in Karakalpakstan and Khorezm region - from October to February) - up to 500 cubic meters.

The social consumption norm is a specific amount of energy paid for by the population at a preferential tariff. This means that it is sold at a relatively low (preferential) price up to a certain norm, and above this norm, it is sold at market prices.

From this date, energy prices will increase. For residential consumers living in multi-story buildings and dormitories equipped with electric stoves for cooking, the tariff will increase within the social norm limits.

The prices of electricity and gas for various categories of consumers will be adjusted from May 1, 2025, onwards. The decision to liberalize tariffs aims to create a more sustainable and fair energy sector in Uzbekistan.

Economist Behzod Khoshimov highlighted that the current pricing policy in Uzbekistan's energy sector exacerbates income inequality. Billions of dollars in subsidies allocated to energy companies to support non-market prices primarily benefit the wealthy, he emphasized.

Furthermore, due to low tariffs, energy companies are facing significant losses. The news will be updated as more information becomes available.