How Limits on Electricity Use will Impact Uzbekistan
This year, Uzbekistan implemented reforms aimed at modernizing and optimizing energy consumption, including a new scheme introduced by the Cabinet of Ministers of the Republic of Uzbekistan. Entitled “Additional measures to introduce market mechanisms in the fuel and energy sector,” the scheme comprises a new pricing structure for fuel and energy resources for 2024-2025, alongside revised basic standards for monthly household electricity and natural gas consumption, starting May 1, 2024. Under the new regulations, residents must pay 450 UZS (3.6 cents) for each kilowatt used up to 200 kWh per month and 900 UZS (7.2 cents) for 201 kWh to 1,000 kWh per month. If energy consumption increases, the price changes accordingly. Household consumers living in apartment buildings and dormitories equipped with centralized electric plates for cooking will be charged 225 UZS (1.8 cents) for up to 200 kWh per month, from 201 kWh to 1,000 kWh – 450 UZS (3.6 cents). Negative reaction to the move has been widespread with numerous complaints posted on social networks such as Instagram and Facebook, demanding the cancellation of the limit of up to 200 kWh. One of the key protests is that the number of family members was not considered when setting the limit and that it will need to increase in the colder months of autumn-winter. Residents also commented they will need to save up to pay for their bills and one Facebook post commented that the 200-kWh limit should be cancelled or at least increased to 500 kWh. In response to public outcry, Uzbekistan's Ministry of Energy issued an official statement announcing that there was no reason to revise its decision and reported that since 71% of the population consumed less than 200 kW of electricity in June, the limit was realistic. When interviewed by TCA on the situation, Umida Ahadova from the Navoi region, commented, “Four people live in our family, and electricity is mainly used for housework. Since it is summer, we often use the air conditioner to cool the house. But the electricity consumption rarely exceeds the set limit of 200 kW." Another interviewee Roziboyeva, who shares a rented house in Tashkent with seven friends said, “Eight girls have lived in a 3-room apartment for almost a year, but our energy consumption is only slightly more than 150 kW. That said, we don’t use air conditioners to heat and cool the house." According to the ministerial statement , 1 kWh of electricity costs 895 UZS (7.1 cents) (without VAT). The state reimburses 552.4 UZS (4.4 cents) for each kWh of electricity supplied to the population within the basic norm and 102.1 UZS (0.81 cents) from 201 kW to 1000 kWh. “It should be said that consumers' electricity savings have increased due to increasing tariffs, " claimed the ministry. " As a result, the load on the system is reduced, people’s electricity systems are cut, and accidents are also decreasing." Research conducted by Asia-Plus last year showed that Kazakhstan has the highest electricity tariff among Central Asian countries....
