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Uzbekistan shifts electricity discounts for large consumers to daytime hours

Uzbekistan has revised the differentiated electricity tariff system for large industrial consumers, shifting the discounted rate from nighttime hours to the daytime period. The change is set out in a presidential decree dated September 22 on the further development of the fuel and energy sector and is intended to encourage a more balanced distribution of electricity demand.

Daytime electricity becomes cheaper for major consumers

The amendments apply to consumers in tariff group I. This category covers companies with a combined connected capacity of their primary and backup power supplies of at least 750 kVA that pay for electricity under a differentiated tariff. Budget-funded organisations, water supply companies, pumping stations operated by farms and water consumer associations, and pumping stations financed from the state budget are excluded from the group.

Previously, the day was divided into three tariff periods. During the morning and evening peaks — from 6:00 to 9:00 and from 17:00 to 22:00 — electricity was charged at a coefficient of 1.5. The standard tariff applied from 9:00 to 17:00, while the night periods — from 22:00 to 24:00 and from 0:00 to 6:00 — benefited from a 1.5-times reduction.

Under the new arrangement, the peak-hour surcharge remains unchanged. The night rate will now be charged at the standard tariff, without a discount, while electricity consumed from 9:00 to 17:00 will be 1.5 times cheaper. The adjustment has been incorporated into amendments to clause 78 of the Rules for the Use of Electricity and Natural Gas.

How the tariff schedule has changed

For group I consumers, the updated schedule is as follows: from 0:00 to 6:00, the standard tariff applies instead of the discounted rate; from 6:00 to 9:00, the tariff remains 1.5 times higher; from 9:00 to 17:00, electricity is charged at half the standard rate; from 17:00 to 22:00, the 1.5 coefficient continues to apply; and from 22:00 to 24:00, the standard tariff replaces the previous nighttime discount.

Since June 1, the base electricity tariff for consumers in groups I and II has been 1,100 Uzbek soums per kilowatt-hour. On this basis, group I consumers pay 1,650 soums per kilowatt-hour during peak periods, while electricity subject to the 1.5-times reduction costs approximately 733 soums per kilowatt-hour.

For international manufacturers, construction companies, interior and exterior producers, and other energy-intensive businesses assessing the Uzbek market, the reform changes the economics of operating schedules. Companies able to move part of their electricity-intensive production, equipment use or auxiliary processes into the daytime discount window may reduce energy costs, while operations concentrated at night will no longer receive the previous price advantage. The measure also signals a regulatory effort to manage peak loads and improve the efficiency of Uzbekistan’s power infrastructure — an important factor for future investment planning and industrial expansion.

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