The cost of electricity and natural gas has been announced

According to the Ministry of Energy, an average of $1.15 billion is spent annually to subsidize the energy needs of households. If market laws are introduced in the sector, it will be possible to spend these funds in the social sector, the ministry informed. Due to the lack of market mechanisms of price formation, the state is forced to subsidize the energy sector, but the sector cannot be developed without constant subsidies, the Ministry of Energy of Uzbekistan stated. According to the Ministry, the cost of 1 kWh of electricity is 970 soums, and the cost of 1 cubic meter of gas is 1,890 soums. For comparison, according to current tariffs, 1 kWh of electricity is delivered to households for 295 soums, and 1 cubic meter of natural gas for 380 soums. From October 1, a tariff of 900 soums for 1 kWh of electricity and 1500 soums for 1 cubic meter of natural gas will apply to most business entities. "So, even when an average of 200 kWh of electricity is consumed per month, the state is actually giving a subsidy of 135,000 soums for each consumer. The number of consumers in the country is 7.4 million households. Similarly, if the cost of 1 cubic meter of gas is 1,890 soums, one family that burns 750 cubic meters of gas during the heating season receives an average subsidy of 1,132,000 soums. Currently, the total number of gas consumers in our country is 4.1 million households. This means that today, on average, more than 14 trillion soums of subsidies are allocated to the population for the consumption of electricity and natural gas. This means that an average of 1.15 billion US dollars is spent annually to subsidize the energy needs of the population," the official statement said. It should be noted that the official information given in May 2022 stated that the cost of 1 kWh of electricity is 800 soums, and the cost of 1 cubic meter of natural gas is 1400 soums. It can be seen from the above data that the cost of electricity has increased by 21% and the cost of natural gas by 35% in a little more than a year. In the statement of the Ministry of Energy on September 19, it was noted that subsidizing it from the state budget is leading to a deficit due to the fact that the industry is operating at a loss. This does not allow more funds to be allocated to the social sector. As a result, the funds that could actually be directed to updating the system are being used only to cover this gap. The authorities noted that instead of fully subsidizing prices, it is necessary to introduce market principles to the industry, to introduce payment of fees for consumed energy based on market requirements. "If market laws are introduced in the industry, these funds will be saved tomorrow. As a result, the saved funds can be spent on the development of the social sector, the construction of new schools and medical institutions, the introduction of modern technologies for the development of production in each field, as well as the deep modernization of the energy system. In addition, living with the rules of the market in terms of energy, like other goods necessary for living, will undoubtedly encourage the formation and development of our life skills such as consumer culture, not excessive waste, independent control of expenses and rational distribution. ", the Ministry of Energy of Uzbekistan informed. We remind you that earlier in the first half of 2023, Uzbekistan increased its natural gas import by 7.2 times, as a result of which the state budget expenses increased by 25% compared to the same period last year, and the consolidated budget deficit reached almost 6%. was Source: Kun.uz