“Electricity and gas prices are expected to be liberalized in May” – Central Bank

Electricity and gas prices may increase in Uzbekistan in May. Deputy Chairman of the Central Bank, Bekhzod Khamroyev, told about this in an interview with Gazeta.uz on January 26.

“Price liberalization is expected in May.  This is included in the inflation forecast,” he said.

The Central Bank previously approved two scenarios for the development of Uzbekistan’s economy until 2025. According to the main scenario, fiscal consolidation begins due to structural changes and the gradual adjustment of regulated prices to market prices (revenues and expenditures are optimized to reduce public debt and budget deficits). 

According to the main scenario, fiscal consolidation will begin due to structural changes and the gradual adjustment of regulated prices to market prices, the competitive environment will improve due to the reduction of the state’s role in the economy and the continuation of planned reforms, and the volume of private and direct foreign investments will grow at a high rate.

Bekhzod Khamroyev expects price liberalization to take place within the main scenario.

Gas and electricity tariffs in Uzbekistan were last increased in August 2019. Liberalization of prices for energy resources and reform of the energy sector have been postponed several times.

The government planned to increase electricity and gas tariffs in February-March 2020, but postponed this measure due to the coronavirus pandemic. In October 2020, Ulugbek Mustafoyev, the chairman of the “Regional Electricity Networks” JSC, announced that President Shavkat Mirziyoyev had set himself the task of not increasing electricity tariffs in 2021-2022.

In May, it was reported that a total of 7.3 million subscribers consume electricity in Uzbekistan, and 80 percent of them consume up to 200 kWh of electricity per month on average. However, these households account for only 31% (5.7 billion kWh) of the total electricity consumed by the population.

85% of 4 million gas subscribers in Uzbekistan consume up to 500 cubic meters of natural gas per month. However, they account for only 35% (4.5 billion cubic meters) of the total population consumption.

The government had planned to introduce social norms and limits on energy consumption from July 15, 2022, but later postponed the decision.