Electricity and gas prices to rise annually, not every 3 years

According to Resolution No. 337 of the Cabinet of Ministers dated June 15, 2024, titled “On Additional Measures to Further Improve the Tariff Policy in the Fuel and Energy Sector,” electricity and natural gas prices in Uzbekistan were initially set to remain unchanged for a minimum of three years, starting in 2026. However, just one day before this resolution took effect, on March 31, the Cabinet of Ministers issued a new resolution stating that prices will increase yearly.

While the context may appear complex, the fuel and energy tariff policy itself is intricate and frequently revised, often leaving consumers little time to adapt.

Tariff increases tied to inflation

Under the newly adopted resolution, separate electricity tariffs will be applied for consumption between 201 kWh and 500 kWh. A previous government resolution dated April 16, 2024, had already outlined that prices for electricity and gas would rise starting April 1, 2025.

According to that resolution, household consumers using between 201 kWh and 1,000 kWh per month were to be charged 1,000 sums per kWh. However, the March 31 resolution revised this figure to 800 sums per kWh.

To summarize the upcoming changes:  
- Currently, household consumers pay 450 sums per kWh for usage up to 200 kWh, and 900 sums for 201–500 kWh.  
- From May 1, the rates will be 600 sums for up to 200 kWh, and 800 sums for 201–500 kWh.

In both pricing schemes, the total payment for 500 kWh will amount to 360,000 sums. While this means the total cost remains unchanged for now, the core message of the new resolution lies elsewhere.

Starting January 1, 2026, electricity and natural gas prices will be indexed annually on May 1, with a cap of 10 percent, based on the annual inflation rate.

In 2024, Uzbekistan’s annual inflation rate was recorded at 9.8 percent. If inflation reaches 10 percent this year, electricity and gas prices are expected to increase by the same amount next year.

Unstable tariff policy

It is worth noting that on June 15, 2024, the Cabinet of Ministers approved a resolution to define the main directions of Uzbekistan’s fuel and energy tariff policy through 2035.

Additionally, the April 16, 2024, resolution established a schedule for the phased adjustment of fuel and energy prices for 2024–2025. However, based on the President's instruction, a resolution issued on March 28 shifted the date of the planned price increase from April 1 to May 1.

Following that, on March 31, the Cabinet adopted another resolution mandating annual price increases for electricity and gas starting in 2026, indexed to inflation but not exceeding 10 percent. This update replaces the earlier plan to freeze electricity and gas prices for at least three years from 2026.

As a reminder, starting May 1, 2024, new payment rates for electricity and gas will come into force, along with a cap on energy consumption levels.