Economics

Why 350 kWh instead of 500? Deputy Minister explained

It is being proposed to set the increased basic limit of electricity for the population without gas supply at 350 kWh during the heating season. A Kun.uz reporter addressed Deputy Minister of Economy and Finance Khurshid Mustafayev with the question of why it is not 500 kWh. According to him, 60 percent of the population in non-gasified areas uses up to 300 kWh of electricity per month during the winter, which is why 350 kWh is being proposed.

Why 350 kWh and not 500? Deputy Minister provided an explanation

In Uzbekistan, it is proposed to increase the basic monthly quota of electricity for residents living in off-grid and hard-to-reach gas supply areas from the current 200 kWh to 350 kWh during the heating season. A draft government decision to this effect has been published for public discussion.

At a press conference held on October 14, a Kun.uz reporter asked why exactly 350 kWh was proposed and whether the option of raising the quota up to 500 kWh had been considered.

Deputy Minister of Economy and Finance Khurshid Mustafayev cited two reasons for the chosen proposal:

“Currently, for low-income families, the difference between the basic price and the cost of consuming an additional 150 kWh beyond the initial 200 kWh is covered by the Social Protection Agency. Taking into account this exact right granted to low-income households, 350 kWh is being envisaged [for ungasified areas during the heating season].

The second reason is that we analyzed the electricity consumption during winter for each household in every ungasified region. Based on that, 60 percent of the population living in non-gasified areas uses up to 300 kWh of electricity per month during winter. Based on this, it is proposed to set 350 kWh as the monthly basic quota.”

The Kun.uz reporter also inquired about the scope of the population to which the discount would apply.

“Currently, the number of households that do not receive natural gas is close to 4 million; they receive liquefied petroleum gas. In addition, there are more than 600,000 consumers in areas where gas delivery is difficult – gas is not supplied to them consistently during winter: for example, there may be gas today, it drops tomorrow, and on the third day it is gone again. Based on this, it has been proposed to set the basic electricity quota for them at 350 kWh during the heating season as well,” the deputy minister said.

It should be recalled that currently, residential consumption up to 200 kWh per month is tariffed at 650 soums, while consumption between 201–500 kWh is billed at 900 soums per kWh.

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