The Minister of Economy and Finance, Jamshid Kuchkarov, stated that a double increase in heating and hot water tariffs in 2025 will not be sufficient, as noted during a meeting of the Senate of the Oliy Majlis.
Senator Anvar Tuychiev mentioned that in 2025, 28.3 trillion sums are planned to be allocated from the state budget for subsidies. Of this amount, 12.3 trillion sums will go to the energy sector, including 7.5 trillion sums to cover the difference between the market cost of gas and electricity production or procurement and their retail prices in the domestic market. Additionally, subsidies for heating supply companies are set to increase by 600 billion sums, totaling 4.8 trillion sums.
Under these circumstances, shouldn’t the approach to subsidizing change with the transition to market principles? If we subsidize the energy sector, what will be the future efficiency, and how will this affect tariffs? — he stated.
Jamshid Kuchkarov described the issue of tariffs and subsidies for thermal energy as somewhat problematic. He pointed out the significant disparity in tariffs across different regions.
We have a very high disparity in tariffs: one price in Tashkent, and another in Bukhara and Fergana. There are also some technological issues in this area. The problem of installing meters for accounting thermal energy.
Centralized heating is mainly available in cities. It is a very costly service. It is quite challenging to bring thermal energy tariffs in line with covering costs by 2025-2026 — he admitted.
The head of the Ministry of Economy highlighted technological issues in the sector, including outdated equipment, such as boilers and heating networks.
Old technologies, leftover from the Soviet era, are still in use there. They consume a lot of gas, and the efficiency of gas utilization is also very low, — he stated.
The head of the Ministry of Economy and Finance noted that the Council of People's Deputies of Tashkent decided to raise tariffs twice next year.
I must say that this is not enough to cover the tariffs. Despite Tashkent having a large budget, we are forced to allocate subsidies for heating in Tashkent from the republican budget, — he indicated.
On December 6, the head of the Ministry of Construction and Housing and Communal Services, Ilkhom Turaev, announced that in 2025, tariffs for hot water and heating in Uzbekistan will be increased twice.