Regional power grids explains increase in electricity prices in April (video)

Uzbekistan has explained the reasons behind the upcoming increase in electricity prices in April.

During the December 18th Senate plenary session discussing the "On the State Budget of the Republic of Uzbekistan for 2025" law, Minister of Economy and Finance Jamshid Kuchkarov announced a further electricity price increase effective April 1, 2025.

He cited the fact that current tariffs do not fully cover costs as the primary reason. Minister Kuchkarov also stated that subsidies to the energy sector will significantly decrease by 2027, and budget subsidies will sharply decline starting in 2028.

Today, at a press conference held at the Agency for State Service Development and Anti-Corruption (AOKA), officials from Regional Power Grids JSC provided further clarification on the price increase.

"As we all know, Cabinet of Ministers Resolution No. 204 issued in April 2024 emphasized and indicated the introduction of appropriate tariff adjustments for both 2024 and 2025. The price increase was announced at that time," said Diyor Nishonov, Deputy Director of the Department of Data Processing and Software Systems Improvement at Regional Electric Networks JSC.

He explained that electricity prices remained stagnant until 2018, contributing to the need for successive price increases.

"The tariff has not increased since 2018. However, we understand that fuel and oil product costs rise annually due to market fluctuations. Given Uzbekistan's status as a social republic, significant emphasis has been placed on social welfare, leading to a prolonged period of unchanged tariffs.

However, accelerating ongoing efforts to increase capacity, such as replacing transformer substations and expanding the capacity of existing ones, requires substantial funding. Therefore, a price increase became necessary. It's important to note that while Regional Electric Networks provides analyses and data on price increases, the Ministry of Economy and Finance ultimately reviews and approves all price adjustments," Nishonov stated.

At the second plenary session of the Senate of the Oliy Majlis, Jamshid Kuchkarov also announced that heat supply tariffs in Tashkent will be increased twice next year.