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Economy 09/10/2024 A 50% discount on electricity to be introduced for private homes without gas supply

A 50% discount on electricity to be introduced for private homes without gas supply

Tashkent, Uzbekistan (UzDaily.com) — Private homes in Uzbekistan that are not connected to the gas supply will be eligible for a 50% discount on electricity, according to Energy Minister Jurabek Mirzamakhmudov during the Lolazor podcast.

As of 1 August, 4.27 million consumers are supplied with gas, 3.66 million of whom receive liquefied gas (propane) in gas cylinders. Since 1 May, the social norm for gas consumption has been set at 100 cubic meters from March to October (in Karakalpakstan and Khorezm regions, from March to September) and up to 500 cubic meters during the heating season from November to February (in Karakalpakstan and Khorezm, from October to February). The norm for electricity is 200 kWh per month, without seasonal adjustments.

Earlier this summer, former deputy Doniyor Ganiev noted that residents in some regions are deprived of gas supply and are forced to use electricity for heating in winter, causing them to exceed the social norm and face higher tariffs. He called on the government to increase the electricity consumption norm (currently 200 kWh per month) for the winter period. Deputy Prime Minister Jamshid Kuchkarov promised to consider this issue.

When asked about plans to increase the social norm in regions where consumers without gas use electricity for heating, the minister replied: "Yes, such proposals have been made, and not just on this issue. Previously, we faced a shortage of generation capacity, but now we have sufficient capacity. Differentiated tariffs depending on consumption have been introduced. Currently, a 50% discount is in place for apartment buildings equipped with electric stoves, and we have been tasked with implementing a similar discount for private homes not connected to gas."

According to him, the Ministry of Energy, together with the Ministry of Economy and Finance, is working on the issue of providing discounts to private homes. "If we finish the work this month, we will introduce the relevant decision. We aim to implement this by January 1," added Mirzamakhmudov.

Plans are also underway to introduce adjusting coefficients for industrial enterprises’ tariffs based on load.

"For example, tariffs could be increased or decreased by 10%, 20%, or 30%, including during night hours. We’ve also been tasked with addressing electric vehicle issues. Plans are being developed to charge electric vehicles at specific times of day to balance the power system," the minister said.

He noted that this is related to the launch of solar and wind power plants, as well as the commissioning this year of 300 MW energy storage systems in the Andijan and Fergana regions. Another such facility will be built in the Tashkent region.

"In September, for the first time, the system could not accept the generated energy into the grid. In such cases, you cannot receive the energy, but you still have to pay for it. This happened over three days. That is, consumption was lower than production. To avoid such situations, after launching 4 GW energy storage systems, electricity will be stored in batteries and fed into the grid as needed," he explained.

According to him, as a result of reduced consumption compared to production, Uzbekistan has increased electricity exports and reduced imports. In 2024, the country purchased 800 million kWh less electricity compared to 2023, the minister noted.

It is worth recalling that for household consumers living in apartment buildings and dormitories equipped with centralized electric stoves, the tariff is 225 sums within the social norm of up to 200 kWh per month. For other consumers, the tariff is set at 450 sums per kWh.

The minister also stated that there are no plans to increase the electricity social norm beyond 200 kWh.

"The norm was introduced not to be increased later. It was developed based on consumption analysis among the population," concluded the minister.

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