Heating tariffs in Uzbekistan may be increased annually within 10%

Heating tariffs in Uzbekistan may be increased annually within 10%

In Uzbekistan, starting from 2028, it is proposed to increase tariffs for centralized heat supply every year, taking inflation into account. This is provided for by a draft government decree published for discussion by the Ministry of Construction and Housing and Communal Services.

According to the draft, tariffs will be indexed once a year — from May 1 — taking into account annual inflation, but by no more than 10%.

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

As a reminder, the presidential decree dated March 11, 2025, provides for a phased bring of reduced heat supply tariffs for the population to the cost level of services by 2030.

At the same time, the new draft provides for a separate increase in tariffs for heating and hot water from November 1, 2026. In particular, in Tashkent, the cost of these services is proposed to be increased by approximately 30%.

The draft also provides for a revision of heat load and thermal energy consumption standards.

JSC "Issiqlikta'minoti", its constituent enterprises, as well as organizations providing centralized heat supply services based on public-private partnership, will have to revise existing standards within two months in accordance with urban planning norms and rules.

The updated indicators must be submitted for approval to the Council of Ministers of Karakalpakstan, as well as the khokimiyats of the regions and Tashkent.

At the same time, the document proposes to establish the following procedure:

A separate block of the draft is dedicated to reducing the costs of production and supply of thermal 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 departments, will have to develop a program of measures to reduce the prime cost of thermal energy by up to 15% within a month.

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

Based on its results, a program for the modernization and reconstruction of heating networks and other heat supply facilities should be developed. The document will be sent to the Cabinet of Ministers for approval.

When forming development programs for social and production infrastructure, it is planned to include facilities that have passed a technical audit.

The draft provides for changes in the corporate governance of JSC "Issiqlikta'minoti". In particular, within a month, it is proposed to bring the share of independent members of the company's supervisory board up to 75%.

By the end of 2026, it is planned to attract qualified foreign specialists to two positions — Deputy Chairman for Financial Issues and Advisor to the Chairman for Technical Issues.

By April 1, 2027, key performance indicators (KPIs) must be introduced for the company's executive body, providing for a 25% reduction in heat network losses based on the results of 2027.

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

By April 1, 2027, the company must transition to preparing financial statements in accordance with international standards, starting with the statements 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, will have to develop a heat supply development strategy until 2030 by May 1, 2027.

As a reminder, starting from 2026, electricity and gas tariffs in Uzbekistan began to be increased annually from May 1, taking inflation into account, but by no more than 10%.