TASHKENT, Uzbekistan, September 11. The Uzbek government is planning to raise gas and electricity fees for legal entities starting October 1, Trend reports.
Electricity fees for Almalyk Mining and Metallurgical Combine, Navoi Mining and Metallurgical Combine, Uzmetkombinat, and budgetary institutions will stand at 1000 Uzbek soums (8 cents) per 1 kWh, which is 55 percent more than before the reforms. Other legal entities will have to pay 900 soums (7 cents) per 1 kWh, which is more than the previous index by two times.
Meanwhile, tariffs for gas for Almalyk MMC, Navoi MMC, Uzmetkombinat, and budgetary institutions will settle at 1800 Uzbek soums (15 cents), an increase of 63.3 percent compared to the current price. Gas fees for other wholesale customers will stand at 1500 soums (12 cents), which is 2.2 times higher than the current index (660 soums for 1 kWh).
As per data provided by Fitch Ratings, the international rating agency, the optimization of these costs will reduce Uzbekistan’s budget deficit from the expected 5.1 percent to 4.3 percent of GDP next year and to 3.4 percent in 2025 (with a target of 3 percent).