Electricity tariffs to increase again from April 1

On January 23, REN management held a press conference to address the upcoming electricity tariff increase scheduled for April 2025, as per a government decision made in April 2024. According to the representative, electricity tariffs had not been raised since 2018, but the prices of fuel and oil products have been rising annually due to market conditions. The representative emphasized that, as a social republic, Uzbekistan had refrained from raising tariffs for a long time to protect vulnerable groups.

Additionally, REN highlighted that ongoing efforts to increase local power capacities, replace transformer stations, and upgrade existing infrastructure require substantial funding. "Therefore, the price increase is necessary," said Diyor Nishonov, Deputy Director of REN's Data Processing and System Improvement Department.

Earlier, during a session in the Senate of the Oliy Majlis (Parliament) discussing the 2025 state budget, Deputy Prime Minister and Minister of Economy and Finance Jamshid Kuchkarov noted that even after two tariff increases, the new prices would not fully cover operational costs. He added that energy subsidies would continue in 2025-2026 but would significantly decrease by 2027 and might cease altogether by 2028.

According to the approved plan, starting from April 1, 2025, electricity tariffs for residential consumers in multi-story buildings and dormitories equipped with centralized electric stoves will increase as follows:

For consumption within the social norm of up to 200 kWh, the tariff will rise from 225 UZS to 300 UZS;
For consumption between 201 kWh and 1000 kWh, the price will increase to 500 UZS;
For consumption between 1000 kWh and 5000 kWh, the price will be 750 UZS;
For consumption between 5000 kWh and 10,000 kWh, the price will be 875 UZS;
For consumption over 10,000 kWh, the price will be set at 1000 UZS.

For other domestic consumers, the price for 1 kWh of electricity will be as follows:

For up to 200 kWh, the price will rise from 450 UZS to 600 UZS;
For consumption between 201 kWh and 1000 kWh, the price will increase to 1000 UZS;
For consumption between 1000 kWh and 5000 kWh, the price will rise to 1500 UZS;
For consumption between 5000 kWh and 10,000 kWh, the price will be 1750 UZS;
For consumption over 10,000 kWh, the price will be 2000 UZS.

For Group IV consumers, the electricity price will increase from 900 UZS to 1000 UZS.

Starting from April 1, the price for 1 cubic meter of gas for all consumers will increase to 1800 UZS, while for CNG filling stations, it will rise to 2500 UZS, and for heat power stations, it will be 1800 UZS.

During the heating season from November to February, the price of natural gas delivered to households will increase as follows:

For consumption up to 500 cubic meters, the price will rise from 650 UZS to 1000 UZS;
For consumption between 500 and 2500 cubic meters, the price will be 1800 UZS;
For consumption between 2500 and 5000 cubic meters, the price will rise to 2100 UZS;
For consumption between 5000 and 10,000 cubic meters, the price will be 2500 UZS;
For consumption over 10,000 cubic meters, the price will be 3000 UZS.

From April 1, 2025, the gas tariffs for consumption from March to October will be as follows:

For up to 100 cubic meters, the price will rise from 650 UZS to 1000 UZS;
For consumption between 101 and 2500 cubic meters, the price will be 1800 UZS;
For consumption between 2500 and 5000 cubic meters, the price will increase to 2100 UZS;
For consumption between 5000 and 10,000 cubic meters, the price will rise to 2500 UZS;
For consumption over 10,000 cubic meters, the price will be 3000 UZS.

The tariff for liquefied gas for the population will increase to up to 2000 UZS per kilogram.

The expected rise in electricity and gas tariffs in April 2025 is anticipated to increase Uzbekistan’s overall inflation rate by 1.8-1.9 percentage points.

Liberalization of tariffs and price formation uncertainty

Electricity and gas tariffs were raised on May 1, 2024 (along with the introduction of a social norm). Prior to that, tariffs had remained unchanged since August 2019, with several price increases postponed over the following five years. In October 2023, tariffs for large enterprises, budget organizations, companies, and other legal entities were also increased.

According to data from April 2024, the price of electricity is approximately 1000 UZS per kWh, and gas costs around 2000 UZS per cubic meter. These prices account for operational costs, including investments and debt repayments. In September 2023, the Ministry of Energy reported that the price of electricity was 970 UZS per kWh (a 21.2% increase from May 2022), while gas was priced at 1890 UZS per cubic meter (a 35% increase).

"There is concern that our reform, particularly the first stage of tariff increases, may only be a temporary solution. In 2-3 years, its effects could dissipate. Why? Because right now we are aligning prices with production costs, but in 2-3 years, who can guarantee that the current lack of transparency in the energy system won’t lead to prices doubling again?" said Doniyor Ganiev, a former deputy in the Legislative Chamber of the Oliy Majlis in July 2024.

On November 4, 2024, President Shavkat Mirziyoyev emphasized that 2025 would be the year of energy efficiency for the energy sector. The President stated that the primary task of each energy company would be to reduce costs.