Uzbekistan allocates US$1.15 billion per year to compensate for the population’s consumption of electricity and natural gas
Tashkent, Uzbekistan (UzDaily.com) - Uzbekistan allocates US$1.15 billion per year to compensate for the population’s consumption of electricity and natural gas.
The cost of 1 kilowatt-hour of electricity is 970 soums. The population pays 295 soums per kilowatt-hour. The difference is compensated by the state. The situation with natural gas is approximately the same: the cost of 1 cubic meter is 1,890 soums, and the consumer pays 390 soums.
The Ministry of Energy explains that subsidizing the industry from the state budget leads to a deficit due to the fact that the industry operates at a loss. This prevents more funds from being channeled into the social sector. As a result, funds that could have been used to update the system are used only to cover this gap.
To save budget funds, experts propose introducing market mechanisms into the industry, and using the saved funds to develop the social sphere, build new schools and medical institutions, modernize the energy system and introduce modern technologies.