Uzbekistan to ease tariff policy for energy sector reform

Sarkaritel
By Sarkaritel May 20, 2022 07:07

Uzbekistan to ease tariff policy for energy sector reform


Uzbekistan will introduce a monthly “social norm” — a limit for state-subsidised gas and electricity as a part of broader energy reform the country is facing, the government said.

Tashkent, May 20 (IANS) Uzbekistan will introduce a monthly “social norm” — a limit for state-subsidised gas and electricity as a part of broader energy reform the country is facing, the government said.

The country’s market needs phased reform to attract private investment and increase capacity to meet rising energy demand, said a joint statement of the Finance Ministry, Energy Ministry and Economic Development Ministry on Thursday.

Consumers who have used gas and electricity beyond the monthly social norm will have to pay extra money in accordance with the rate based on free market price, it added.

“The growing demand is satisfied by increasing the volume of natural gas purchased at free prices in the market. As a result, it also increases the amount of direct and indirect costs to maintain the current level of subsidised (or below the actual cost) natural gas tariffs at the expense of the state budget,” the statement said.

It added that the Central Asia’s most populous nation of 35 million people needs to attract private investments to create new energy capacities, and reform the energy market to make it more attractive, Xinhua news agency reported.

The statement said the government will soon draft a law on the social norm for electricity and gas, which will envisage protection of the vulnerable part of the population.

Sarkaritel
By Sarkaritel May 20, 2022 07:07