Uzbekistan allocates 333 billion soums to regulate tariffs for heat supply services in 2020

In 2020, thermal energy suppliers will receive 333.2 billion soums to cover part of the costs arising from the application of reduced tariffs for the population, follows from the statement of the Finance Ministry.

It is noted that in order to provide social support in the field of heat supply (central heating and hot water supply), at the initiative of the Finance Ministry, methods of state subsidizing of tariffs for the population have been introduced, which provide for:

- the establishment of lower tariffs for the population in comparison with tariffs for wholesale consumers, to whom tariffs are set based on the cost (full cost coverage);

- payment of subsidies from the State Budget to heat supply enterprises as compensation to cover part of the costs (losses) arising from the application of reduced tariffs for the population.

According to the Ministry of Finance, in 2019, the level of tariffs for the population was set lower by 35% compared to tariffs for wholesale consumers, and therefore, subsidies to heat supply enterprises in the amount of 286.4 billion soums were allocated from budgetary funds. 

In 2020, state subsidizing of tariffs for heat supply services to the population will also be maintained, and funds in the amount of 333.2 billion soums have been provided for the payment of subsidies to heat supply companies to compensate for the price difference in the approved parameters of the State Budget.