Alisher Qodirov, leader of the Milliy Tiklanish party, announced the imminent end of monopoly practices in Uzbekistan’s energy market. This development follows the approval of the bill on energy in its second reading during a recent party faction meeting on July 8.
Under the new legislation, consumers will now have the freedom to choose their energy provider, much like selecting mobile communication services. This move is set to introduce healthy competition among energy producers and distributors, a departure from the previous restrictive regulations.
"You have the right to choose a company that sells energy, just as you choose a company that provides mobile communication services. There will be competition between energy-producing and selling companies. This was prohibited in the current law," emphasized Alisher Qodirov.
The bill outlines a structured framework governing various facets of the energy sector, including production, transmission, distribution, storage, and import/export of electricity. Key provisions mandate licensing for all energy-related activities, defining clear roles, rights, and responsibilities for market participants.
The legislation also mandates transparent principles for tariff formation, ensuring fairness and accountability in electricity pricing. This initiative marks a significant departure from the previous centralized control, aiming to enhance efficiency and attract private investment.
A few years ago, Alisher Qodirov warned that just as ending the automobile industry monopoly was necessary to see changes in car prices, ending the energy monopoly is crucial for improving the quality and affordability of gas and electricity supply to the population.
This move aligns with Uzbekistan's broader economic strategy outlined in the presidential decree on the development strategy of New Uzbekistan for 2022-2026. The decree emphasizes the shift towards market-driven mechanisms in vital sectors, aiming to spur economic growth and enhance service delivery across the board.
This included separating the "single buyer" role from the National Power Grid of Uzbekistan, setting forth essential criteria to attract private operators to Hududiy elektr tarmoqlari (Regional Power Networks), and encouraging private investment in small and medium-scale projects by Uzbekhydroenergo.
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