Electricity tariffs to increase again from April 1
Starting April 1, electricity tariffs in Uzbekistan will increase. Specifically, the tariff for domestic consumers within the established social
The IEA estimates that in 2020, Uzbekistan's implied subsidies on natural gas, electricity and oil amounted to USD 3.8 billion, equivalent to 6.6% of the country's GDP. Indeed, historically, electricity production costs have been on average more than one-third above tariffs charged to end users.
Indeed, the national Electricity Grid reported roughly USD 200 million in losses in 2021. Tariff reforms have therefore been ongoing to phase out subsidies by 2030. Yet, estimates suggest that during this phase out period, Uzbekistan will spend a further USD 55 billion in subsidies.
Uzbekistan has historically been an energy surplus nation, ranking fifth in Eurasia in 2021. Nevertheless, increasing domestic energy demand has significantly reduced net energy exports. Indeed, net energy exports amounted to just 1% of total energy production in 2021.
Modern energy pricing mechanisms and policies are required to incentives investment into the energy sector whilst simultaneously not burdening the livelihoods of the Uzbek population. Thus, subsidies should be gradually phased off and accompanied with support mechanisms for vulnerable groups. Just Transition & Social Pricing Key Takeaways:
PDF version includes complete article with source references.
Get technical specifications, application guides, and ROI analysis tools for containerized power stations, portable photovoltaic containers, and microgrid energy storage solutions.
18 Industrial Park Road, Midrand
Johannesburg, South Africa 1685
Sales & General: +27 11 568 3400
Technical Support: +27 82 459 7781
Monday - Friday: 8:00 AM - 6:00 PM SAST
Saturday: 8:00 AM - 2:00 PM SAST