TASHKENT, May 20 (NNN-XINHUA) – Uzbekistan will introduce a monthly “social norm” – a limit for state-subsidised gas and electricity, as part of a broader energy reform the country is facing, the government said yesterday.
The country’s market needs phased reform, to attract private investment and increase capacity to meet rising energy demand, said a joint statement of the Ministry of Finance, Ministry of Energy, and Ministry of Economic Development.
Consumers who used gas and electricity beyond the monthly social norm will have to pay extra money, in accordance with the rate based on free market price, it said.
“The growing demand is satisfied by increasing the volume of natural gas purchased at free prices on the market. As a result, it also increases the amount of direct and indirect costs to maintain the current level of subsidised (or below the actual cost) natural gas tariffs, at the expense of the state budget,” the statement said.
It added, the nation of 35 million people, needs to attract private investments to create new energy capacities, and reform the energy market to make it more attractive.
The statement said, the government will soon draft a law on the social norm for electricity and gas, which will envisage protection of the vulnerable part of the population.– NNN-XINHUA
