Uzbekistan to begin liberalization of energy prices. Tariffs are expected to increase

In Uzbekistan, the relevant departments plan to develop a schedule for liberalizing regulated prices (tariffs). This is stated in the presidential decree “On improving monetary policy with a phased transition to inflation targeting”. 

According to the document, the Ministry of Finance, before February 1, 2020, together with the Ministry of Energy, the Antimonopoly Committee, the Ministry of Economy and Industry, other interested ministries and departments, was tasked with developing and submitting for approval to the Cabinet of Ministers a schedule of liberalization of regulated prices (tariffs) in 2020-2021, taking into account the impact on inflation targets.

It should be recalled that during the XX plenary session of the Senate, Shavkat Mirziyoyev spoke about problems in the energy sector. According to the head of state, liberalization of electricity prices is necessary in Uzbekistan.

“We must liberalize electricity prices. Our country is very rich, but we are not using the opportunities correctly. Many investors want to invest in the energy sector of Uzbekistan, but they are interested in the price of energy,” the president said.

Shavkat Mirziyoyev noted that Uzbekistan should raise prices for electricity.

“Entrepreneurs will not invest unless we raise prices. Yes, it will be difficult. This will affect many areas, it will be especially difficult for the population, but we are forced to take such measures,” he noted.

Later, during the first meeting of the Economic Council, First Deputy Minister of Finance Timur Ishmetov also said that until tariffs in the electric power industry are liberalized, investments in the sphere will not be attracted. 

“At the same time, the sharp increase in tariffs does not correspond to the policy pursued by the country’s leadership. It can place a burden on people. In general, a long-term process is envisaged,” he said.