In Uzbekistan, heating tariffs may be raised by up to 10 percent annually

In Uzbekistan, starting from 2028, it is proposed to raise centralized heat supply tariffs annually taking inflation into account. This is provided for in the draft government resolution put up for discussion by the Ministry of Construction and Housing and Communal Services ..

Under the draft, tariffs will be indexed annually starting from May 1, taking into account the annual inflation rate, but the increase will not exceed 10 percent.

The proposals of the Ministry of Construction and Housing and Communal Services and the Ministry of Economy and Finance will serve as the basis for indexation.

We remind that the President's resolution of March 11, 2025 stipulated bringing heat supply tariffs for the population to the level of service cost by 2030 in stages.Advertising on "Gazeta"

At the same time, the new draft also provides for a separate increase in heating and hot water tariffs from November 1, 2026. In particular, in Tashkent it is proposed to raise the price of these services by almost 30 percent.

In which cases can tariffs be reduced?

The draft also provides for revising the heat load and heat energy consumption standards.

JSC "Issiqlikta'minoti", the enterprises within its structure, and organizations providing centralized heat supply services on the basis of public-private partnership will have to revise the current standards in accordance with urban planning norms and rules within two months.

The updated indicators must be submitted for approval to the Council of Ministers of Karakalpakstan, the regional and Tashkent city khokimiyats.

The document proposes to establish the following procedure:

• If, as a result of the revision, the heat energy consumption standards decrease, the current heat supply tariffs for all household consumers in the respective territory must be reduced simultaneously.
• If the standards are raised, the current tariffs will remain unchanged until they are next revised and approved.

Reducing the cost of heat energy by up to 15 percent is planned

A separate part of the draft is devoted to reducing the costs of producing and supplying heat energy.

The Ministry of Construction and Housing and Communal Services, together with the National Energy Efficiency Agency, the Ministry of Energy, JSC "Issiqlikta'minoti" and other agencies, will have to develop within one month a program of measures to reduce the cost of heat energy by up to 15 percent.

In addition, by the end of 2027, a full technical audit of the country's heat supply systems is planned.

Based on the audit results, a program for modernizing and reconstructing heat networks and other supply facilities will be developed and submitted for approval to the Cabinet of Ministers.

It is also planned to include audited facilities in the formation of programs for the development of social and production infrastructure.

The draft also provides for changing the corporate governance of JSC "Issiqlikta'minoti". In particular, within one month it is proposed to increase the share of independent members on the company's supervisory board to 75 percent.

By the end of 2026, it is planned to attract qualified foreign specialists to the positions of deputy chairman for financial matters and advisor to the chairman for technical matters.

By April 1, 2027, key performance indicators (KPIs) will be introduced for the company's executive body. They envisage reducing losses in heat networks by 25 percent by the end of 2027.

Also, by the end of 2026, the heat supply enterprises within JSC "Issiqlikta'minoti" must be transferred to a modern billing system.

By April 1, 2027, the company must switch to preparing financial reports based on international standards, starting with the report for 2026.

The Ministry of Construction and Housing and Communal Services, the Ministry of Economy and Finance, the National Energy Efficiency Agency, the Ministry of Energy and JSC "Issiqlikta'minoti", together with international consultants, must develop by May 1, 2027 a strategy for developing the heat supply sector until 2030.

We remind that from 2026, electricity and gas tariffs in Uzbekistan began to be raised annually from May 1, taking inflation into account. However, their increase must not exceed 10 percent ..