We understand that the issue of rising hot water and heating tariffs is a cause for concern, and we are ready to explain the current situation in detail.
On September 12, 2024, the Kengash of People's Deputies of the city of Tashkent approved a proposal to increase tariffs for residents and legal entities (except budget organizations) by 15%.
Why are tariffs increasing?
The tariff increase has been driven by rising prices for energy resources — gas and electricity — which are essential for the production of heat and hot water.
In 2023, electricity tariffs for businesses increased significantly. To cover these additional costs, we were forced to raise tariffs for budget organizations and other legal entities effective December 2, 2023.
However, our residential tariff remained unchanged until the end of the 2023/2024 heating season. From April 2, 2024, it increased by 15%, which is significantly below the rate of growth in energy prices. This was the first residential tariff increase since 2019. As you can see, we are making every effort to keep tariff growth gradual and moderate in order to avoid sharp price hikes.
What about subsidies?
The current residential tariff covers 16% of the base tariff. After the upcoming 15% increase, it will cover 18%. The remaining portion will continue to be compensated by government subsidies.
When will the new tariffs take effect?
The decision of the Kengash of People's Deputies of the city of Tashkent is an intermediate step in the process of approving and applying the new tariff. The next steps are:
The Kengash's decision is forwarded for consideration to the Hokim of Tashkent.
The draft decision of the Hokim is published on the portal www.regulation.gov.uz for public review and discussion. The discussion period is 15 days.
The Hokim of Tashkent signs the final decision. The tariffs will take effect 15 days after the publication of this decision.
The date on which the tariffs take effect will be announced on the official resources of Veolia Energy Tashkent and in the media.
We understand that a tariff increase is a significant burden. However, Veolia Energy Tashkent, like everyone else, depends on energy prices, which determine our costs. The tariff increase was a forced measure. We are doing everything possible to maintain a balance between economic reality and support for our citizens.