Starting January 1, 2027, Uzbekistan will begin the first phase of transition to wholesale and retail electricity sales market through 'purchases based on bilateral contracts.' This will enable large consumers to acquire electricity directly from private producers at prices agreed upon by the parties, while small and micro power plants can sell energy to enterprises in their respective regions.
The rules for this market phase were approved by Cabinet of Ministers Resolution No. 527 dated September 30, 2026. This document was adopted to implement the Law 'On the Energy Industry' and is based on the concept of a phased transition to wholesale and retail electricity market mechanisms for the period 2023–2030, approved by Presidential Decree No. UP-166 dated September 28, 2023.
Bilateral contracts on the wholesale market will be concluded between independent producers and large consumers. An independent producer is defined as a private enterprise operating under a license and not having a long-term guaranteed electricity purchase agreement. A large consumer is an enterprise connected to networks at 6 kV or higher and consuming no less than 10 million kWh of electricity per year. Budgetary and municipal organizations, budget-funded water supply and pumping stations, farms, and mobile network operators are excluded from this definition.
In the retail market, small and micro power plants with a capacity of up to 5 MW will be able to sell electricity at contract prices to consumers connected to the distribution system operator's networks in the same region—Karakalpakstan Republic, a region, or Tashkent. Household consumers are excluded from this category.
Prices under bilateral contracts will be determined by free agreement. A contract may be valid for no more than one year, while supply volumes are planned and paid hourly. Contract terms must comply with dispatching requirements and grid connection rules.
A producer is entitled to conclude multiple contracts with different buyers, including separate agreements for each of its power plants, but the total sales volume must not exceed the actual generation of the plant. A large consumer can also purchase electricity from several producers, provided that the total purchases do not exceed its actual consumption. The parties themselves determine in the contract how transmission and distribution costs are distributed.
The contract comes into force after its registration by the market operator. At this stage, the functions of the operator will be performed by JSC 'Uzenergosbyt'—the central buyer, whose shares are entirely state-owned. Trading operations will be conducted using the CAS and Billing systems of JSC 'Regional Electric Networks.'
Electricity not sold under direct contracts will be purchased at regulated tariffs by the central buyer, and in the retail market—by the designated supplier. Buyers can also purchase additional volumes if their contractual supplies are insufficient. Power plants with a state participation of 50% or more will continue to sell all their electricity to the central buyer at regulated tariffs.
Consumers, including large consumers, will have the opportunity to sell surplus electricity generated by their own renewable energy installations at a regulated tariff. The central buyer is prohibited from granting any unjustified advantages, preferences, or discriminatory conditions to anyone.
The market operator daily checks the hourly schedules of contracts. The sales volume cannot exceed the planned purchase volume by the buyer, and purchases cannot exceed the planned consumption. If discrepancies are found, the parties are obliged to provide corrected data by 11 AM the day before delivery. If they fail to do so, the operator will independently adjust the volumes using established formulas and send the agreed schedules to the parties by noon.
Solar and wind power plants, energy storage systems, and large consumers must provide a daily power forecast for the next day to the system operator by 10 AM. On the day of delivery, they must provide forecasts four hours, one hour, and fifteen minutes before the start. If actual generation or consumption deviates from the forecast beyond the permissible level, the system operator may limit the power. Power plants and large consumers must report accidents and changes in equipment status within five minutes.
The rules provide for the possibility of transferring distribution system operator assets or a share in its charter capital to the private sector under trust management. In such cases, payments for distribution services are made in accordance with relevant service agreements.
The Agency for Regulation and Development of the Energy Market will monitor the wholesale market. The market operator will publish a register of participants, actual volumes of electricity purchases and sales, and market operation reports on its website, storing data for at least five years.
Market participants will first attempt to resolve disputes among themselves and then may appeal to the agency. Within two working days, the agency will schedule a discussion, which must take place within five working days of the application. If an agreement is not reached within 30 days, the applicant may submit the dispute to court. The agency, together with ministries and state bodies, has been instructed to bring its regulatory documents into compliance with the resolution within two months.
