Business owners in Uzbekistan are demanding the introduction of a compensation mechanism to cover losses caused by frequent and unannounced power and gas outages. The issue was brought to the forefront during a meeting with representatives of the café, restaurant, and retail sectors on July 14.
Entrepreneur Nargiza Ulugova, co-founder of Testo Cafe, proposed that electricity suppliers be held accountable for the damage caused to businesses during outages. She emphasized that her company cannot operate without electricity, yet power is often cut without warning — in some cases up to 10 times a day.
“When the electricity goes out, we lose sales, and equipment is damaged. We pay high commercial tariffs and work on deposits. There must be compensation for these losses,” Ulugova said.
Alina Simerman, another entrepreneur in the restaurant business, echoed the call for accountability. She noted that power cuts are happening without prior notice, despite contractual obligations that require energy providers to inform consumers in advance.
“The supplier has no right to disconnect without notice. We’re left with spoiled products and broken equipment,” Simerman said. “Sometimes electricity goes out eight times a day — it’s unbearable.”
The discussion also included Farrukh Sodiqkhodjayev, head of Karbonat in Forish district, who detailed the financial blow his lime production company faced due to a gas outage. Despite paying UZS 4bn ($316,126) in advance for gas over three months, the supply was cut.
“We are an export-oriented company. Still, they shut off the gas. Our income stopped, salaries were delayed, and employees took legal action,” he said.
According to Sodiqkhodjayev, the lawsuit forced the company to pay UZS 8bn ($632,253) in compensation under Article 333 of the Labor Code, which penalizes salary delays. He warned that the provision is proving destructive to businesses already under pressure.
“We went from 370 employees to just 50. I've filed complaints for over a year — no result,” he said.
Economist Otabek Bakirov criticized the double standard in the legal framework. He highlighted the lack of accountability for utility providers, while businesses are penalized for disruptions caused by those very outages.
“There is no mention of damages to inventory or equipment, yet businesses must pay up to 511% per annum in compensation if they can’t pay salaries on time. Meanwhile, energy companies face no such obligation,” Bakirov said. “This is a structural failure.”
The energy provider Regional Electric Networks has previously attributed the power cuts to emergency breakdowns and preparations for the autumn-winter season. However, business owners say the disruptions are routine and increasingly unsustainable.
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