Prices for gas and electricity for population will increase in Uzbekistan starting from May 1, according to a government resolution from April 16.
Deputy energy minister Umid Mamadaminov explained the long-postponed changes during a briefing on Tuesday.
The increase of tariffs has been repeatedly announced since the last increase in August 2019 but never took place. Prices were raised only for companies and organizations starting from October 2023.
Effective from May 1, “social norm” for gas and electricity consumption are also being introduced as follows:
- electricity — up to 200 kWh per household per month.
- gas (from March to October, and in Karakalpakstan and Khorezm region from March to September) — up to 100 cubic meters.
- gas (during heating season from November to February, and in Karakalpakstan and Khorezm from October to February) — up to 500 cubic meters.
The “social norm” is the volume paid by consumers at a lower, preferential tariff. For gas and electricity consumed above the “norm”, market prices should apply.
Electricity
For consumers residing in apartment buildings and dormitories with central electric stoves, tariffs will increase as follows:
- up to 200 kWh per month, or within the “social norm” — from current 147.5 to 225 soums per kWh,
- each extra kWh from 201 to 1000 kWh — 450 soums,
- 1,000 to 5,000 kWh — 675 soums,
- 5,000 to 10,000 kWh — 787.5 soums,
- over 10,000 kWh per month — 900 soums.
For other household consumers, the revised electricity tariffs increase as follows:
- up to 200 kWh per month — from 295 to 450 soums,
- 201 to1,1000 kWh — 900 soums,
- 1,000 to 5,000 kWh — 1,350 soums,
- 5,000 to 10,000 kWh — 1,575 soums,
- 10,000 kWh per month — 1,800 soums.
Natural gas
The cost of 1 cubic meter of natural gas supplied to the population during the heating season from November to February will increase as follows:
- up to 500 cubic meters — from 380 to 650 soums,
- 500 to 25,00 cubic meters — 1,500 soums,
- 2,500 to 5,000 cubic meters — 1,950 soums,
- 5,000 to 10,000 cubic meters — 2,275 soums,
- over 10,000 cubic meters — 2,600 soums.
From March to October the tariff will be as follows:
- up to 100 cubic meters — 650 soums,
- 101 to 2,500 cubic meters — 1,500 soums,
- 2,500 to 5,000 cubic meters — 1,950 soums,
- 5,000 to 10,000 cubic meters — 2,275 soums,
- over 10,000 cubic meters — 2,600 soums.
The tariff for liquefied gas for the population will rise from 1,120 to 1,600 soums per 1 kg.
From June 1, the price of gas supplied for automobile gas filling compressor stations (CNG fueling stations) will increase from 1,500 to 1,800 soums.
Future tariff increases
From April 1, 2025 tariffs will increase once again. For household consumers in apartment buildings and dormitories with electric stoves, the tariff will increase as follows:
- up to 200 kWh per month (“social norm”) — from 225 to 300 soums,
- 201 to 1,000 kWh — 500 soums,
- 1,000 to 5,000 kWh — 750 soums,
- 5,000 to 10,000 kWh — 875 soums,
- over 10,000 kWh per month — 1,000 soums.
The cost of 1 kWh of electricity for other household consumers will be increased as follows:
- up to 200 kWh per month — from 450 to 600 soums,
- 201 to 1,000 kWh — 1,000 soums,
- 1,000 to 5,000 kWh — 1,500 soums,
- 5,000 to 10,000 kWh — 1,750 soums,
- over 10,000 kWh per month — 2,000 soums.
From the same date — April 1, 2025 — the price of natural gas for all types of consumers will increase to 1,800 soums per cubic meter. For CNG stations, the price will be 2,500 soums, for thermal power plants, it is set at 1,800 soums.
The price per cubic meter of natural gas supplied to the population during the heating season from November to February will increase as follows:
- up to 500 cubic meters — from 650 to 1,000 soums,
- 500 to 2,500 cubic meters — 1,800 soums,
- 2,500 to 50,00 cubic meters — 2,100 soums,
- 5,000 to 10,000 cubic meters — 2,500 soums,
- over 10,000 cubic meters — 3,000 soums.
For gas consumption from March to October tariffs will increase as follows:
- up to 100 cubic meters of gas — from 650 to 1,000 soums,
- 100 to 2,500 cubic meters — 1,800 soums,
- 2,500 to 5,000 cubic meters — 2,100 soums,
- 5,000 to 10,000 cubic meters — 2,500 soums,
- over 10,000 cubic meters — 3,000 soums.
The tariff for liquefied gas for the population will increase to 2,000 soums per 1 kg.
Postponed tariff liberalization
In 2022, the Economy and Finance Ministry said there were a total of 7.3 million households consuming electricity in the country, with 80% of them spending on average up to 200 kWh per month. However, these households account for only 31% (5.7 billion kWh) of the total consumed volume.
85% of the 4 million gas consumers at that time used an average of up to 500 cubic meters of gas per month. They accounted for 35% (4.5 billion cubic meters) of total residential consumption.
The increase of gas and electricity tariffs has been repeatedly postponed since the last increase in August 2019, first because of the Covid pandemic in 2020 and then due to other reasons. The latest planned increase set for July 1, 2022 was also canceled.
In a 2019 article for Gazeta.uz economist Bekhzod Khoshimov wrote that Uzbekistan’s current pricing policy in the energy sector leads to rising income inequality, with the poor getting poorer and the rich getting richer.
Billions of dollars of subsidies provided to energy companies to maintain non-market prices benefit the rich more, he emphasized. Moreover, energy companies endure multibillion-dollar losses due to low rates.
