Uzbekistan Revamps Energy Regulations, Adjusts Tariffs for Overuse
The Cabinet of Ministers recently announced new guidelines aimed at adjusting energy costs for businesses that exceed their consumption limits. A resolution issued on December 27, 2024, clarifies the application of a 1.2 multiplier to energy tariffs for enterprises.
These updated regulations focus on electricity and gas usage, specifically addressing payments for resources consumed beyond contractual volumes during the billing period. Since September 2024, a 1.2 multiplier has been applied to consumption that exceeds contractual limits by 20% or more.
Under the revised rules, the increased tariff will only apply to volumes consumed after the 20% threshold is surpassed. For example, if the agreed monthly supply is set at 100,000 kWh, the higher tariff will only apply to consumption beyond 120,000 kWh.
While certain exemptions are still in place, such as residential electricity consumers being excluded from these changes, the rules do not apply to specific entities like automotive gas-filling compressor stations, thermal power plants (TPPs), or other strategically important enterprises.
Additionally, the resolution introduces new guidelines for handling electricity debt during the auction sale of real estate. Unless otherwise stated in the purchase agreement, the responsibility for settling electricity debt will now fall on the buyer.
These changes are part of broader efforts to promote responsible energy use. In light of these efforts, the president has instructed officials to reassess measures aimed at reducing wasteful energy consumption. One proposal under consideration is to allow debtors the option to repay their arrears in installments to minimize the risk of disconnection from the power grid.
