It is proposed that starting from 2028, tariffs for centralized heat supply in Uzbekistan will be adjusted annually based on the inflation rate. This provision is included in a draft government decree published by the Ministry of Construction and Housing and Communal Services for discussion.
According to this draft, tariff indexation should occur once a year, beginning on May 1st, and be based on annual inflation, although the increase must not exceed 10%. The basis for conducting the indexation will be proposals from the Ministry of Construction and Housing and Communal Services and the Ministry of Economy and Finance.
Previously, a presidential decree from March 11, 2025, established a requirement to gradually reduce heat supply tariffs for the population to the cost of services by 2030.
The new draft also provides for a separate increase in the cost of heating and hot water, which is set to take effect on November 1, 2026. Specifically, in Tashkent, the cost of these services is projected to increase by approximately 30%.
The draft also includes a mechanism for revising norms of thermal energy consumption and thermal load. Enterprises belonging to JSC 'Issikliktaʼminoti', as well as organizations providing centralized heat supply services under a public-private partnership model, are obliged to update current standards within two months in accordance with urban planning norms and rules.
These updated indicators must be submitted for approval to the Council of Ministers of Karakalpakstan, regional khokimiyats, and Tashkent. Within this document, the following procedure is proposed: if the revised norms of thermal energy consumption decrease, current heat supply tariffs must be reduced for all domestic consumers in that area; if the norms increase, tariffs will remain at the previous level until the next approval.
A separate section of the draft is dedicated to reducing the costs of heat energy production and delivery. The Ministry of Construction and Housing and Communal Services, together with the National Energy Efficiency Agency, the Ministry of Energy, JSC 'Issikliktaʼminoti', and other agencies, must develop a plan to reduce the cost of thermal energy by 15% within one month.
Furthermore, a comprehensive technical audit of the entire country's heat supply system is planned by the end of 2027. Based on the results of this audit, a modernization and reconstruction program for heat networks and other heat supply facilities must be created and subsequently submitted for approval to the Cabinet of Ministers. When developing plans for social and production infrastructure development, objects that have undergone this technical audit must be taken into account.
The draft also introduces changes to the corporate governance system of JSC 'Issikliktaʼminoti'. Specifically, it proposes increasing the share of independent members of the company's supervisory board to 75% within one month. By the end of 2026, it is planned to attract two qualified foreign specialists for the positions of advisor to the chairman on technical issues and deputy chairman on financial issues.
By April 1, 2027, key performance indicators (KPIs) must be introduced for the company's executive body, which stipulate a reduction in heat network losses by 25% by the end of 2027. Additionally, by the end of 2026, heat supply enterprises belonging to JSC 'Issikliktaʼminoti' must be equipped with a modern billing system.
The company must begin preparing financial statements according to international standards for the 2026 reporting period, and this must happen before April 1, 2027. The Ministry of Construction and Housing and Communal Services, the Ministry of Economy and Finance, the National Energy Efficiency Agency, the Ministry of Energy, and JSC 'Issikliktaʼminoti', together with international consultants, must develop a strategy for the development of the heat supply sector until 2030 by May 1, 2027.
It should be noted that since 2026, gas and electricity tariffs in Uzbekistan have also been increased annually starting May 1st, taking into account inflation, provided that the growth does not exceed 10%.
