The Institute for Reducing the Share of the Shadow Economy, Improving Tax and Customs Administration, and Fiscal Analysis at the Ministry of Economy and Finance has proposed changing the current system of heat supply subsidies in Uzbekistan. This initiative was announced on July 30 as part of a fiscal dialogue.
Instead of continuing to compensate tariffs for all consumers, the institute proposes transitioning to a model of targeted social support for households that genuinely need it.
According to data presented in the presentation, the total amount of subsidies for heat supply across the republic will reach 3.8 trillion soums in 2026, with 2.9 trillion soums, or 77% of this amount, allocated to Tashkent.
The current situation shows that the population pays less than 20% of the basic tariff, which is set at 711.6 thousand soums per 1 Gcal, while about 80% of the cost is covered by the state budget. The authors of the proposal point out that centralized heat supply in Tashkent heavily relies on these budgetary compensations, whereas in most other regions, the household directly bears the cost of heating.
One of the significant shortcomings of the current system, according to the institute, is its non-targeted nature, as subsidies are provided regardless of the consumer's income or property status. Furthermore, there are differences in tariffs for legal entities: budgetary organizations pay 952.8 thousand soums per 1 Gcal, while other legal entities pay 342.3 thousand soums.
The institute proposes gradually introducing a social consumption norm. Preferential payment conditions may apply to housing up to 60 square meters per household or 16 square meters per registered resident.
For the area exceeding the established social norm, the basic tariff is proposed, which means a 5.1 times increase in payment for the population compared to the current rate (139,860 soums per Gcal). There are also plans for the gradual transition of second and subsequent residential premises to the basic tariff, with the share of payment increasing from 40% to 100%.
For legal entities, it is proposed to gradually increase the share of the basic tariff application: first from 60% to 80%, and then to a full transition to 100%. In the long term, the institute advocates abandoning tariff subsidies in favor of targeted cash assistance for those in need, which will be distributed through the Unified Social Protection Register.
However, for a significant portion of citizens, the payment procedure may remain unchanged. The presentation showed that 45.4% of apartments in Tashkent are no more than 60 sq. m, and the current payment terms will be maintained for them.
Following reports of a possible fivefold increase in tariffs, the Institute of Fiscal Analysis at the Ministry of Economy and Finance clarified that this proposal represents only an analytical development by staff and is not an official decision, bill, or regulatory document. Current tariffs and payment rules for heat supply remain unchanged.
The institute emphasized that the goal of the initiative is not a general increase in payment but a shift in focus from subsidizing all consumers to providing targeted support to those who need it. The preferential tariff remains within the social norm: 60 sq. m per household or 16 sq. m per person. For a family of four, this norm will be 64 sq. m.
According to the institute's estimates, this approach will not change the payment procedure for 45.4% of apartments in Tashkent with an area of up to 60 sq. m. In the medium term, needy families will receive targeted financial assistance through the Unified Social Protection Register. The study was presented at the 'Fiscal Dialogue' for expert discussion and aims to find fairer methods of distributing budget support.
Previously, in December 2024, Deputy Prime Minister, Minister of Economy and Finance Jamshid Kuchkarov noted that the heat supply problem is more complex than problems with electricity and gas, due to the large difference between the market value of heating and existing tariffs. He also pointed to issues related to the lack of meters and outdated, energy-intensive equipment.
In July 2025, Ilhom Turayev, chairman of 'Issiklik Ta'minoti', stated plans to completely abolish subsidies for heating and hot water in Uzbekistan by 2030, noting that tariffs will be indexed once or twice a year, which will allow for a gradual reduction in the volume of subsidies.
The total volume of electricity production in Uzbekistan reached 44,140.8 million kWh for the period from January to June 2026. This figure demonstrates a 5.7% increase compared to the same period last year, when 41,747.1 million kWh was produced. The data was provided by the National Committee of the Republic of Uzbekistan on Statistics.
The structure of energy production underwent noticeable changes. Output from large enterprises decreased by 4.6%, amounting to 29,832.8 million kWh, compared to 31,282.2 million kWh the previous year. Conversely, the volume of electricity produced by small enterprises increased by 36.8%, reaching 14,308.0 million kWh compared to 10,464.9 million kWh, indicating the growing significance of small businesses in the country's energy sector.
Regarding thermal energy, production by large enterprises in the period from January to June 2026 decreased by 18.1%. The volume of thermal energy amounted to 9,284.7 thousand Gcal, which is lower than the figure of 11,338.0 thousand Gcal recorded during the same period last year.
From January to July 2026, Uzbekistan produced 7 billion kilowatt-hours of electricity from renewable sources, representing a 23% increase compared to the same period last year.
According to official data, the country operates 21 renewable energy facilities with a total installed capacity of 5,602 MW. These include 15 solar power plants with a combined capacity of 3,930 MW and six wind power plants with a total capacity of 1,672 MW.
The production of electricity from renewable sources has shown steady growth in recent years. In 2022, the output was 434 million kWh, in 2023 it was 576.9 million kWh, in 2024 it reached 4.9 billion kWh, and in 2025 it reached 10.5 billion kWh.
In total, from 2022 to July 2026, Uzbekistan generated over 23.4 billion kWh of electricity from renewable sources. These results allowed the country to save approximately 6.24 billion cubic meters of natural gas and prevent the emission of about 13.46 million tons of harmful emissions into the atmosphere. Authorities attribute the achievement of these indicators to the implementation of renewable energy projects, attracting investments, and utilizing modern technologies.
The Ministry of Economy and Finance has put amendments to the Tax Code of Uzbekistan up for public discussion, which provide for a possible tenfold increase in property and land taxes for a number of greenhouse farms in Tashkent and the Tashkent region.
This increase is linked to the negative impact of greenhouse complexes on the environmental situation. It is proposed to apply increased rates to greenhouses located in the capital, as well as in the Yukorichchik, Kibray, Yangiyul, Zangiatin, and Tashkent districts of the region. Furthermore, tax benefits for these farms are being abolished.
There is an exception for those greenhouses where boiler houses and heating installations have been dismantled, or for farms that have switched to using electric heating. A list of such facilities will be compiled by the authorized body responsible for ecology. The authors of the bill hope that this will reduce the negative impact of greenhouse production on the environment and promote the adoption of safer and more energy-efficient heating methods.
Public discussion of this project is scheduled until July 31. After the law is adopted, it will come into force from the date of signing. Previously, there was a plan to relocate greenhouse farms from the capital region, which harm the environment, to the 'Surkhon-Agro' Special Economic Zone in the Surkhandarya region.
