Uzbekistan not planning to increase 200 kWh social norm for electricity consumption despite thousands of complaints

Social media has been abuzz with discussions about the 200 kWh monthly basic norm for electricity consumption introduced on May 1, 2024.

In response to these discussions, organizations within the energy system have issued a joint statement.

The statement recalls that by the decision of the Cabinet of Ministers dated April 16, 2024, the monthly basic consumption norms for household consumers were approved effective from May 1 of this year.

"The main purpose of this measure is to increase the efficiency of electricity consumption among consumers, to properly and accurately distribute the funds allocated by the state to cover the population's expenses, and to ensure the reliable supply of fuel and energy resources," the statement says.

According to analysis, it is planned that the population of the republic will consume a total of 21.2 billion kWh of electricity in 2024, of which consumers with an average monthly consumption of up to 200 kWh will make up 60% of the total number of subscribers throughout the year.

"Based on the above and considering that electricity consumption does not significantly fluctuate throughout the year, a uniform basic norm has been implemented for the entire year.

Firstly, currently, the cost of producing 1 kWh of electricity is 895 UZS (1,002 UZS including VAT).

For each kWh of electricity delivered to the population within the basic norm, 552.4 UZS, and for consumption between 201 kWh and 1,000 kWh, an additional 102.1 UZS per kWh are subsidized by the state for each consumer.

The production cost of 1 kWh of electricity is 741.93 UZS, the transportation cost is 57.8 UZS, and the distribution and sales costs are 202.4 UZS.

Thus, the state subsidizes 447.0 billion UZS for consumers using up to 200 kWh of electricity (71% of consumers) and 30.2 billion UZS for consumption between 201 and 1,000 kWh.

Secondly, the basic norm is the consumption volume of up to 200 kWh per month, and within this consumption range, all household consumers pay a "preferential" rate of 450 UZS (including VAT) per kWh," the system organizations emphasized.

The statement notes that in June of this year, 71% of the population consumed up to 200 kWh of electricity.

"This indicates that 71% of consumers did not exceed the established limit. Therefore, there is no basis for increasing the monthly basic norm of 200 kWh for consumers in the near future," the report said.