Authorities in Uzbekistan have announced plans to gradually adjust heating and hot water tariffs to match actual production costs by the year 2030. Currently, residential tariffs cover a mere 20 percent of the actual cost, leaving the vast remainder to be heavily subsidized through the state budget.

According to a draft government resolution submitted for public review, significant tariff increases are scheduled to take effect on November 1, 2026. Furthermore, starting May 1, 2028, heating and hot water prices are intended to undergo annual indexation based on the inflation rate, capped at a maximum increase of 10 percent per year.

During an official press briefing, Deputy Minister of Economy and Finance Khurshid Mustafoyev addressed the background behind the restructuring. He noted that tariffs in Tashkent remained frozen between 2019 and 2024, while energy resources, wages, and operational costs steadily climbed, resulting in a fivefold gap between the actual cost of services and the prices charged to the population.

Officials claim that reaching full cost-recovery will not rely solely on consumer price hikes. The strategy supposedly involves targeted cost-reduction programs, technical audits of aging infrastructure, and modernization efforts designed to cut production costs by at least 30 to 40 percent before the end of the decade.

Source: kun.uz