Uzbekistan's President Shavkat Mirziyoyev has recently signed a decree on September 28, which marks another significant step in the reform of the country's energy sector.
This decree introduces the establishment of a new entity called the Joint Stock Company "Uzenergosotish." This organization will be responsible for the centralized procurement and distribution of electrical energy.
Meanwhile, the company "National Electric Networks of Uzbekistan" (NESU) will take on the role of the operator for the unified main electricity transmission system. NESU will specialize in the transportation and transit of electric energy.
Starting from July 1, 2024, "Uzenergosotish" will assume full responsibility for all aspects of centralized procurement and distribution of electrical energy. The operation of the major power grids will be handed over to "National Electric Networks."
As of January 1, 2025, all the obligations of NESU concerning electrical energy export and import contracts, as well as agreements for the purchase of electrical energy from private power stations, will be fully transferred to "Uzenergosotish."
During the initial phase of transitioning to wholesale electricity market mechanisms, "Uzenergosotish" will purchase electricity from producers and sell it to regional power companies and large consumers at established rates.
In the subsequent phase, electrical energy will be traded through an online trading platform at market-driven prices, determined by supply and demand dynamics.
"Uzenergosotish" will conduct export and import operations of electrical energy based on contractual agreements.
The "National Electric Networks" will retain its core responsibilities, including ensuring the reliable real-time operation and stability of the unified electrical power system, providing electrical energy transmission services through the main power grids at approved tariff rates, developing major electrical grids based on approved programs, and ensuring the stable integration with neighboring countries' energy systems while managing parallel operation modes.
By March 1, 2024, there are plans to enact a package of documents that will define the legislative framework for the wholesale and retail electricity markets, as well as the licensing procedures for participants in these markets.
By January 1, 2025, the responsibility for transitioning the contracts of NESU related to electrical energy export and import, as well as agreements for purchasing electrical energy from private power stations, to "Uzenergosotish" will be fully implemented. Nonetheless, NESU will continue to fulfill its obligations as the network operator, as stipulated in contracts and agreements.