Electricity tariffs set to rise starting April 1
Starting April 1, 2025, residents of Uzbekistan can expect an increase in electricity tariffs. The previous tariff of 450 UZS for domestic consumers within the established social norm will rise to 600 UZS. This increase follows a previous tariff adjustment on May 1, 2024. Representatives from Regional Electric Networks (REN) have provided insight into the reasoning behind the price hike.
At a press conference held on January 23, REN management addressed the upcoming electricity tariff adjustment scheduled for April 2025. The decision to raise tariffs was made by the government in April 2024. According to REN representatives, the last time electricity tariffs were increased was in 2018. The rise in fuel and oil product prices due to market conditions has necessitated this adjustment. They emphasized that Uzbekistan, as a social republic, has refrained from raising tariffs for an extended period to protect vulnerable groups.
Furthermore, REN highlighted the ongoing efforts to enhance local power capacities, replace transformer stations, and upgrade existing infrastructure, all of which require substantial funding. Diyor Nishonov, Deputy Director of REN’s Data Processing and System Improvement Department, stated that the price increase is necessary to support these initiatives.
During a session in the Senate of the Oliy Majlis discussing the 2025 state budget, Deputy Prime Minister and Minister of Economy and Finance Jamshid Kuchkarov noted that even with two tariff increases, the new prices would not fully cover operational costs. He mentioned that energy subsidies would continue through 2025-2026 but would significantly decrease by 2027 and might cease altogether by 2028.
As of April 1, 2025, electricity tariffs for residential consumers in multi-story buildings and dormitories equipped with centralized electric stoves will increase based on consumption levels. The prices will range from 300 UZS to 2000 UZS per kWh, depending on the amount of electricity used.
In addition to electricity tariffs, gas prices will also see an increase starting from April 1. The price for 1 cubic meter of gas for all consumers will rise to 1800 UZS, with varying prices for different consumption levels.
The expected rise in electricity and gas tariffs in April 2025 is projected to impact Uzbekistan’s overall inflation rate by 1.8-1.9 percentage points.
Despite the tariff adjustments, concerns have been raised regarding the long-term sustainability of these increases. It is essential for energy companies to focus on reducing costs and improving energy efficiency to address these challenges in the future.
President Shavkat Mirziyoyev has emphasized that 2025 will be the year of energy efficiency for the energy sector in Uzbekistan, highlighting the importance of cost reduction measures in the industry.
