Uzbekistan intends to abolish monopoly over gas and electricity supply

The Uzbek government unveiled on Monday the draft 2021 State Programme. The document proposes abolishing the monopoly over gas and electricity supply. The country's authorities intend to allow local companies to buy electricity and liquefied petroleum gas on the open market, rather than from state monopolies, in the face of domestic energy shortages.

Uzbekistan exports natural gas mainly to China, but this winter it experienced a shortage of fuel, which caused a reduction in export supplies and discontent among the population.

According to the draft presidential decree published on Monday, the state monopoly on the supply of electricity and liquefied gas to local enterprises will be abolished already this year.

The draft also proposes cancellation of customs duties and permits for the import of liquefied gas.

The Uzbek Ministry of Energy will be tasked with overseeing the implementation of the roadmap and allow enterprises to import electricity and gas from August 1, the draft document said.

In the meantime, according to experts, the government`s efforts to abolish monopoly on the electricity market would destroy the entire energy system of the country.

Two new players will appear in the producer-consumer chain with their own turnover taxes, costs and profits, which would lead to a surge in energy prices.

According to the State statistics committee, gas production in Uzbekistan decreased by 18.6% to 44.9bn cubic meters in January-November 2020.