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Economy

Uzbekistan Plans to Cut Heating Costs by Up to 40%

Uzbekistan Plans to Cut Heating Costs by Up to 40%
Uzbekistan Plans to Cut Heating Costs by Up to 40% / Photo: UzDaily.

Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan plans to reduce the cost of producing and supplying heat by 30–40% through the modernisation of district heating systems and reductions in network losses, Deputy Economy and Finance Minister Khurshed Mustafayev said on 14 October.

Mustafayev, who oversees the oil and gas sector, said that raising tariffs was not being considered the only way to bring charges closer to the actual cost of providing heating services.

A draft Cabinet of Ministers resolution предусматривает the preparation of a dedicated programme to reduce the cost of heat production and supply by at least 15% annually.

One of the first steps will be a technical audit of the existing heating system. The findings will be used to identify measures needed to modernise infrastructure and reduce heat losses.

“Cost is not an indicator that only increases. The company, together with the relevant ministries and agencies, will work to bring it down,” Mustafayev said.

The draft resolution also proposes a procedure for revising household heating tariffs. From 2028, tariffs could be reviewed once a year, on 1 May, taking annual inflation into account. Annual indexation would be capped at 10%.

Separately, new tariffs are scheduled to be introduced from 1 November 2026. Public consultation on the draft resolution will end on 28 October.

A plan to gradually bring reduced tariffs closer to the cost of providing heating by 2030 was previously established by a presidential resolution dated 11 March 2025.

The planned reforms also include modernising heating infrastructure, reducing network losses by 25% by the end of 2027 and introducing modern billing systems at companies operating in the sector.

Anvar Umarov
Anvar Umarov

Anvar Umarov is the founder and editor-in-chief of UzDaily, a leading business and news publication covering Uzbekistan and Central Asia. With over 20 years of experience in journalism, he has also worked as a PR manager for both state and private organizations, bringing a broad perspective on media, communications, and public affairs to his editorial leadership.