Uzbekistan plans to liberalize energy prices and introduce social consumption norms for their. This is provided for by the Cabinet of Ministers’ draft Changes in fuel and energy prices Resolution, posted for public input until June 15.
The document proposes to establish the size of the social norm for the consumption of energy resources:
- electricity – up to 250 kWh per month;
- gas (in the period from April to September) – up to 200 m3s;
- gas (during the heating season from October to March, depending on the season) – up to 700 m3s.
The social norm of energy consumption is understood as a certain amount of energy paid by households at a reduced rate. That is, 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 July 1, 2022, with the draft resolution it is planned to increase energy prices.
Electricity
a) The cost of 1 kWh of electricity for households is planned to be increased from 295 to 325 soums (+10.1%) with consumption up to 250 kWh per month. For each next kWh above the social norm (more than 250 kWh), the tariff will be 650 soums.
According to the Ministry of Economic Development, with the proposed differentiated tariffs, the fee for subscribers using up to 250 kWh of electricity per month will increase by about 7,500 soums per month, for subscribers using up to 300 kWh – by 25 thousand soums, and for subscribers using up to 400 kWh – by 61,000 soums.
b) The cost of 1 kWh of electricity for Navoi MMC, Almalyk MMC and budget-financed organizations will increase from 450 to 800 soums (77.7%), and for other legal entities – from 450 to 600 soums (+33%).
For households living in apartment buildings and dormitories, centrally equipped with electric stoves for cooking, the tariff is planned to be increased from 147.5 to 165 soums (+11.8%).
Natural gas
a) The price of one m3 of natural gas to households will increase from 380 to 410 soums (7.8%) with gas consumption within 200 m3s from April to September and if gas meters are present. If consumption is above the social norm (more than 200 m3s), the tariff will increase to 1200 soums.
In the absence of meters, one m3 of gas supplied for cooking and hot water supply will increase from 660 soums to 1,200 soums (+81.8%), for heating – from 380 soums to 700 soums (+84.2%).
During the heating season, tariffs will be calculated based on the social norm of 700 m3s (410 soums for consumption less than this mark, 1200 soums for more).
According to the Ministry of Economic Development, outside the heating season, subscribers with a consumption of up to 200 m3s will increase their expenses to 6,000 soums per month, and with a consumption of up to 300 m3s – up to 88,000 soums per month.
For subscribers consuming up to 700 m3s of natural gas during the heating season, additional costs after the increase will amount to 21,000 soums per month, while consuming up to 1,000 m3s – up to 267,000 soums per month.
b) The cost of one m3 of gas for Navoi MMC, Almalyk MMC and budget-financed organizations will increase from 660 to 1300 soums (+96.9%), automobile gas filling compressor stations (CNG) – from 1000 to 1200 soums (+12%), thermal power plants — from 660 to 1,000 soums (+51.5%) and other legal entities — from 660 to 1,150 soums (+74.2%).
It is proposed to increase the tariff for liquefied gas for households from 1120 to 1600 soums (+42.8%). At the same time, taking into account the fact that an average of 20 kg of liquefied gas is supplied per subscriber per month, the additional costs of the subscriber will amount to 9,600 soums per month, the Ministry of Economic Development estimated.
Tariffs from April 1, 2023
In order to improve the operational efficiency and energy saving of enterprises, as well as to indicate a “long-term goal” to reduce costs, along with new prices for the current year, it is also proposed to approve new prices that will come into force on April 1, 2023.
In particular, from this date, the price of electricity for NMMC, AGKM and budget-financed organizations is planned to be kept at the level of 800 soums, and for other legal entities it is planned to increase from 600 to 700 soums.
As for gas, for thermal power plants the tariff will be increased from 1,000 to 1,200 soums, for NMMC, AGMC and budget-financed organizations – from 1,300 to 1,350 soums, for gas filling stations – from 1,200 to 1,400 soums, for other legal entities – from 1,150 to 1,350 soums.
Fuel and energy prices, set from April 1, 2023, in 2024 and 2025 will be indexed only to the inflation rate. Starting from 2026, it is planned to switch to the wholesale market of electricity, natural and liquefied gas, and then prices will be formed on market conditions.
– The Tashkent Times