“Reducing the state’s substantial electricity losses is critical for the Government of Uzbekistan’s drive to develop and modernize industry and infrastructure, helping it to maintain growth and reduce poverty,” said Keiju Mitsuhashi, Senior Energy Specialist in ADB’s Central and West Asia Department. “This project assistance will fund modern, accurate and tamper-proof electricity meters in Andijan, Fergana, Kashkadarya, Namangan and Surkhandarya, supporting the government’s long-term development goals.”

Uzbekenergo, the state-owned utility, experiences high system losses and low tariff collection. This weak performance reflects a lack of investment in modern electricity equipment, including meters which are old, inaccurate and susceptible to tampering.

In response, Uzbekenergo requested support from international financial institutions, including ADB, for the introduction of advanced electricity meters. The “smart” meters allow the utility to remotely disconnect and reconnect supply without sending staff to the customer site, resulting in reduced revenue losses and meter tampering. The metering system also gives the utility the information it needs to identify and reduce overloading and technical losses, and helps customers manage their power use more efficiently.

ADB supported the first phase of the program, benefiting 1 million customers. The fresh project loan will be used to install 3.1 million advanced meters and associated equipment across the 5 regions, allowing Uzbekenergo to complete the nationwide rollout covering 6.3 million customers. The meters provide an innovative technology solution for ensuring transparency and fairness in power billing and improved customer service, and the initiative is the first of its kind and scale in ADB’s developing member countries.

The loan will also help fund staff training at Uzbekenergo, and carry out a public information campaign to raise awareness about energy efficiency. The project will run for almost 5 years, with an estimated completion date of end 2020.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2014, ADB assistance totaled US$22.9 billion, including cofinancing of US$9.2 billion.