Sun. Jun 8th, 2025
Uzbekistan’s Tariff Liberalization Leads to Drop in High-Consumption Households

The Center for Economic Research and Reforms conducted a study analyzing household behavior under Uzbekistan’s new tiered electricity and gas pricing policy, introduced in May 2024. The policy incorporates a social consumption norm.

The research encompassed 3,516 households nationwide, supplementing household data with consumption figures from 3.5 million gas and 8 million electricity subscribers.

Between May and December 2024, electricity consumption decreased by 10.6% compared to the same period in 2023, representing a saving of 1.3 billion kWh.

The number of households consuming over 10,000 kWh monthly significantly dropped, from nearly 80,000 in 2023 to 15,000 in 2024.

“Interestingly, the majority of citizens continued to use energy within their usual norms. The proportion of subscribers consuming up to 200 kWh per month remained stable at 71% in 2023 and 72% in 2024,” the Center reported.

Similar trends were observed in natural gas consumption, with 58% of subscribers using up to 500 cubic meters in 2024, compared to 54% in 2023. The tariff increase did not drastically alter basic consumption levels.

“The most significant reduction was observed in regions with relatively high initial consumption, such as Samarkand, Tashkent, Andijan, and Namangan regions. The number of households with high consumption levels (over 10,000 kWh per month) decreased substantially, indicating a shift towards more economical energy use,” the report noted.

The study also revealed improvements in energy supply. Nearly half of respondents reported positive changes in electricity supply and the availability of natural and liquefied gas.

47% of households reported improved electricity supply, particularly in Surkhandarya (78%), Syrdarya (70%), and Namangan (67%) regions.

Natural gas supply improved for 39% of respondents, with the highest improvements in Khorezm and Surkhandarya regions (both 68%), and Jizzakh region (60%).

Liquefied gas supply improved for 45% of households, notably in Syrdarya (73%), Surkhandarya (62%), and Namangan (59%) regions. These findings suggest increased access to basic energy services as reforms continue.

Widespread adoption of energy-efficient solutions at the household level was a key change. Over 90% of respondents reported implementing at least one energy-saving measure.

LED lighting was the most common practice, with 87% of households switching to LED lighting; this figure exceeded 90% in some regions, including Karakalpakstan, Khorezm, Navoi, and Tashkent.

44% improved window and door insulation with plastic frames, particularly in Kashkadarya (84%), Bukhara (69%), and Khorezm (54%) regions.

31% purchased energy-efficient appliances, with the highest adoption in Jizzakh (60%), Navoi (59%), and Karakalpakstan (54%).

Growing interest in renewable energy is also evident. 64,000 households nationwide installed solar panels with a total capacity of 223.4 MW, generating approximately 313 million kWh annually, equivalent to saving 104 million cubic meters of natural gas.

Over half of solar panel owners expressed satisfaction and interest in expanding generation. Analysis suggests potential demand for solar panels among 1.9 million households, creating a potential domestic market worth over $2.3 billion.

“However, a significant portion of heating still relies on less efficient sources, including outdated gas boilers and solid fuel stoves, highlighting the need for housing infrastructure modernization and incentives for transitioning to modern technologies,” the report concludes.