SOCIETY | 16:03 / 10.07.2024
4 min read

Uzbekistan introduces double rate for businesses who exceed electricity consumption limit

In Uzbekistan, businesses and other legal entities previously paid 960 UZS per kWh for electricity when exceeding the set limit by 10%, up from the standard rate of 900 UZS. Now, any excess consumption will be charged at double the rate, reaching 1800 UZS per kWh. 

Previously, legal entities set their own limit and made a prepayment. For example, if the monthly limit is 5000 kWh, exceeding this would cost 960 UZS per kWh. Now, if the limit is exceeded, the rate is 1800 UZS per kWh.

Many entrepreneurs have been paying without setting a limit due to this reason.

Since June 1, those who did not set their own limit are charged 1800 UZS for every kWh exceeding 100 kWh, and the power is cut off once the payment is exhausted.

Energy Minister Jurabek Mirzamakhmudov mentioned in an interview with "Uzbekistan 24" on May 30, after a meeting with the president, that the coefficients for electricity and gas consumption for legal entities would be increased.

"Additionally, norms will be set, meaning that if gas or electricity consumption exceeds the set limit by 10%, the excess volume will be charged up to double the rate. Why is this being done? This is to save energy resources, which are becoming more expensive due to imports. It is necessary to achieve maximum energy efficiency in our economy," he said.

The Ministry of Energy clarified that this procedure is applied to legal entities (private business entities, state enterprises, and government organizations). For example, if the limit for a company or state organization is 100 kWh, but consumption reaches 120 kWh, the double tariff applies to 20 kWh.

This standard was reflected in the new rules for the use of electricity and gas, approved by a Cabinet of Ministers decision on May 31, according to the RES. The document came into force on June 10, ten days after its publication in the legislation database. The Ministry of Energy announced the document on June 15.

Based on clause 5 of the rules, proposals for changes to the volumes of electricity consumption can be submitted to the RES following the established procedure. These proposals must be submitted 10 days before the start of the reporting month in which the change is planned.

"The main purpose of implementing these rules is to ensure economical and rational use of electricity by consumers," the company stated. writes with reference to the Regional Electric Networks that if an entrepreneur does not set a limit, the double tariff will apply to any consumption exceeding 100 kWh. This is also specified in the technical conditions of the project.

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