Energy regulator to take over the gas market, Ministry of Energy to lose the right to issue individual permits
The powers of the Energy Market Development and Regulation Agency are being expanded to include natural and liquefied gas. Starting from 2028, it will approve regulated tariffs and payments. At the same time, the Ministry of Energy will no longer be able to issue individual permits to specific enterprises and consumers.
Energy Regulator to Take Over Gas Market, Ministry of Energy to Lose Right to Issue Individual Permits
The powers of the Energy Market Development and Regulation Agency of Uzbekistan now extend to both natural and liquefied gas. This is stipulated by a presidential decree dated September 22.
According to the document, the energy regulator is tasked with the gradual formation of market principles and the regulation of the electricity, natural gas, and liquefied gas markets.
Until now, the regulator's work was mainly focused on the electricity market. The decree officially establishes the expansion of its powers to the gas sector.
The annex to the document outlines the key areas of the agency's activities. In particular, it must promote competition in the electricity, natural gas, and liquefied gas markets and ensure a balance between supply and demand.
The regulator will also monitor equal and transparent conditions for market participants and compliance with competition legislation.
In addition, its powers include licensing participants in these markets and monitoring compliance with licensing requirements, as well as approving methodologies for calculating technological losses during the production, transmission, and distribution of electricity.
Starting from 2028, the regulator must approve regulated tariffs and payments in the sectors of electricity, natural gas, and liquefied gas supply, monitor compliance with consumer rights, and introduce an effective system for reviewing their appeals.
Another change concerns the powers of the Ministry of Energy. The decree abolishes the practice under which the ministry could issue individual permits to fuel and energy sector enterprises and consumers regarding contractual relations, provision of services, and other economic matters.
In addition, the action plan provides for the simplification of public services in the fuel and energy sector, including procedures for issuing and coordinating technical specifications.
To achieve this, these processes are planned to be transitioned into a fully proactive format, and a corresponding draft document will be prepared for submission to the Cabinet of Ministers.
The document also provides for a review of the regulatory framework of the energy sector and the further introduction of market mechanisms in the industry. In particular, it envisages the development of rules to ensure competition in the electricity, natural gas, and liquefied gas markets with the involvement of international consultants.
As a reminder, the decree also changed the differentiated electricity tariffs for large consumers in Uzbekistan. From 9:00 to 17:00, a reduction coefficient will apply to them — the tariff will become 1.5 times lower. At night, the previous discount is canceled, and electricity will be paid for at the regular tariff.