Social limit on electricity and gas needs reassessment

Social limit – a right or a restriction?

Since the introduction of social limits for electricity and natural gas in Uzbekistan, these measures have been a topic of heated discussion.

To ensure stability in electricity supply and the efficient use of energy resources, a limit of 200 kWh for electricity and 500 cubic meters of gas during the heating season (100 cubic meters in other months) has been implemented. Consumption within these limits is charged at a reduced rate, while exceeding them results in progressively higher rates. People have become aware of this system and adapted to it.

However, these restrictions have created difficulties for certain groups of the population. Given that cold temperatures, snowfall, and freezing nights have continued into March, the president instructed the extension of the increased gas limit for this month. In response, the government set the gas limit at 500 cubic meters for March as well— a decision widely welcomed by the public.

For now, it remains unclear whether this measure will apply only for the current year or become permanent. However, this should not be just a temporary measure for 2025 but a long-term solution for future years as well.

Electricity limits

Currently, Uzbekistan has set a social limit of 200 kWh per month for electricity. If consumption exceeds this threshold, citizens must pay a higher tariff for electricity.

This is particularly unfair for residents in areas without access to natural gas. Many regions of the country, especially remote villages, are not supplied with gas. As a result, people have no choice but to rely on electricity for heating and cooking.

Therefore, in areas dependent on electricity, either the social limit should be increased, or a 50% discount on payments should be introduced.

Gas limit – A solution for the autumn-winter season

For natural gas, the government has set a limit of 500 cubic meters from October 1 in Khorezm and Karakalpakstan, and from November 1 to March 1 in other regions, including Tashkent.

The decision to extend this limit for March was correct and justified.

Previously, the heating season lasted from October 15 to April 15. Using this timeframe as a baseline would be fair. No one wastes gas unnecessarily — when the weather is warm, people naturally consume less. Besides, from April 1, the price of gas for the population will rise to 1,000 UZS per cubic meter, encouraging everyone to be more economical.

To ensure stable gas supply in cold and chilly periods, it would be reasonable to introduce a minimum limit of 250 cubic meters for October in all regions except Khorezm and Karakalpakstan, and for April in all regions.

Moreover, as gas prices rise beyond the social limit (from April 1, the cost of gas exceeding 100 cubic meters will be set at 1,800 UZS per cubic meter, up to 1,000 cubic meters), people may prefer using air conditioners or electric heaters instead of expensive gas. This could lead to an excessive load on the electricity supply system.

The remaining limit should not be lost

Under the current system, any unused portion of the monthly social limit expires at the end of the month. For example, if the electricity limit is set at 200 kWh but you only use 150 kWh, the remaining 50 kWh is lost and does not carry over to the next month. The same applies to gas consumption.

This forces consumers to maximize their use of the limit instead of encouraging energy conservation.

If a household does not fully consume its allocated 100/500 cubic meters of gas or 200 kWh of electricity, the unused portion should roll over to the next month. This would benefit both consumers and suppliers.

For instance, someone who used less gas and electricity in December could use more in January within their accumulated limit. Such a system would also encourage consumers to be more efficient with their energy use.

International practices

Several countries around the world have social limit systems, but they apply different approaches compared to Uzbekistan:

• Kazakhstan – The government subsidizes electricity and gas prices for socially vulnerable groups.
• Russia – In some regions, a social norm is implemented, offering discounted rates for low-income households up to a certain limit.
• Germany – Monthly consumption norms are set to encourage energy savings, but unused limits roll over to the next month.
• France – There is no monthly limit system, but financial compensation is provided by the government for certain groups.

As seen in these examples, Uzbekistan should also reconsider its electricity and gas limits in a way that balances economic efficiency with consumer well-being.

In short, the government's introduction of social limits for electricity and gas is economically justified. However, these restrictions must be improved to better reflect the actual needs of the population.

Implementing the following measures will make the system more effective:

• In regions without gas supply, the electricity limit should be increased to 400 kWh (with extended thresholds) or a 50% discount on payments should be introduced.
• The gas limit should be applied nationwide from October 1 to May 1. Specifically, in all regions except Karakalpakstan and Khorezm, a 250 m³ social limit should be introduced in October, and another 250 m³ limit should be provided in April for all regions.
• Any unused portion of the social limit must be carried over to the following months to encourage energy-efficient consumption.

Efficient use of energy resources and protecting citizens' interests should be among the government's key policy priorities. Such reforms would not only ensure stability in gas and electricity supply but also improve convenience for the public.