Heat supply tariffs in Tashkent increase twice, yet still insufficient – Deputy PM

In Tashkent, heat supply tariffs will be increased twice next year, but this measure is still insufficient, according to Deputy Prime Minister and Minister of Economy and Finance Jamshid Kuchkarov. He announced this during the second plenary session of the Senate of the Oliy Majlis on December 18.

“Now, if we talk about heat supply enterprises, our issues with heat supply are a little more complicated. This is because there are significant differences in tariffs. For example, the cost of producing thermal energy is the same in Tashkent but differs in Bukhara or Fergana. There are also technological challenges in this sector. One of them is the issue of metering heat consumption, which is inherently difficult. Another challenge is the outdated nature of the system, as boiler houses and supply networks still operate using old Soviet-era technologies. These facilities consume significant amounts of gas and operate with low efficiency in terms of profitability and gas utilization,” Kuchkarov explained.

He noted that the Tashkent city council had recently adopted a resolution to increase heat tariffs twice next year, but this measure alone was not sufficient.

“To cover the tariffs, despite Tashkent's large budget, the city still needs to allocate subsidies related to heating from the republican budget,” the minister added.

Kuchkarov further stated that ongoing reforms in the energy sector aim to establish retail and wholesale markets for electricity and gas.

“Once the electricity and gas markets are established, there will no longer be a need to provide subsidies to this sector from the budget,” the Deputy Prime Minister emphasized.

It is worth recalling that at the same meeting, Kuchkarov mentioned that subsidies to the energy sector from the state budget would continue in 2025-2026, sharply decrease in 2027, and be eliminated starting in 2028.