The powers of the Agency for Development and Regulation of the Energy Market of Uzbekistan are being expanded to include the natural and liquefied gas sectors. This change was formalized by a presidential decree issued on September 22.
According to this document, the energy regulator is tasked with gradually establishing market principles and regulating the electricity, as well as natural and liquefied gas markets. Previously, the regulator's main activities were focused exclusively on the electricity market, but the decree officially expands its competencies to the gas sector.
An appendix to the decree specifies a list of the agency's main areas of work. These include promoting competition in the electricity, natural, and liquefied gas markets, as well as ensuring the balance between supply and demand. The regulator will also monitor compliance with competition legislation and guarantee equal conditions for all market participants.
The regulator's responsibilities include licensing participants in these markets and overseeing compliance with licensing requirements. Furthermore, it will approve methodologies for calculating technical losses during electricity generation, transmission, and distribution. Starting in 2028, the agency will begin approving regulated tariffs and payments in the electricity, natural, and liquefied gas supply sectors, and will also monitor consumer rights and implement an effective system for handling their appeals.
Abolition of the Practice of Issuing Individual Permits by the Ministry of Energy
Another significant change concerns the functions of the Ministry of Energy. The decree abolishes the practice that allowed the ministry to issue individual permits to enterprises in the fuel and energy industry and end consumers for various contractual relationships, services, and other business matters.
According to 'Gazeta', this system of individual decisions created corruption risks because it gave the ministry considerable freedom of action when issuing permits for specific companies and consumers. As part of the action plan, the simplification of public services in the fuel and energy sector, including procedures for agreeing on technical specifications, is also planned. These processes are intended to be moved to a fully proactive mode, for which a corresponding draft document will be prepared for submission to the Cabinet of Ministers.
The document also provides for the revision of the entire energy regulatory framework and the further implementation of market mechanisms in the industry. In particular, the development of rules ensuring competition in the electricity, natural, and liquefied gas markets is planned, involving international consultants.
It should be noted that previously, a decree in Uzbekistan had changed the differentiated electricity tariffs for large consumers. Now, for them, between 9:00 AM and 5:00 PM, a reducing coefficient will apply, lowering the tariff by 1.5 times. At the same time, the night discount is abolished, and electricity will be tariffed at the standard rate.