Uzbekistan allocates $12.9M to compensate families for energy costs

BAKU, Azerbaijan, October 19. Uzbekistan allocated 156.6 billion soums (about $12.9 million) in compensation payments to more than 470,000 families in 2025 and the first nine months of 2026 to help households cover electricity and natural gas costs during energy tariff reforms, according to information presented at a meeting in Tashkent on October 15.

This was reflected in the statement by the Uzbekistan's National Agency for Energy Efficiency.

The event, held on October 15, focused on social protection measures and energy efficiency under the World Bank’s Innovative Carbon Resource Application for Energy Transition (iCRAFT) project, which supports energy sector reforms in Uzbekistan.

The session was organized in cooperation with the Center of Green Economy Projects under the Ministry of Economy and Finance, the National Agency for Social Protection, the National Agency for Energy Efficiency and the Yuksalish Movement. Government officials, nongovernmental organizations, businesses and media representatives attended.

Madina Azizova, chief specialist at the National Agency for Social Protection, outlined existing compensation mechanisms and proposals to expand assistance for vulnerable households.

Under the current arrangements, eligible families can receive monthly compensation of up to 37,500 soums (around $3,10) for electricity and between 135,000 (approx. $11,18 ) and 225,000 soums (about $18,63) for natural gas, depending on the season.

Participants also discussed proposed measures for the 2026–2027 autumn and winter season. These include a one-time payment of 1 million soums (around $82,79) to each of 1.017 million families, raising the income eligibility threshold for compensation from 1.5 times to twice the minimum consumer expenditure level, and extending social assistance to an additional 166,000 families.

Other proposals include extending electricity and natural gas compensation through April 1, 2028, covering costs associated with coal and liquefied gas purchases, and increasing the baseline electricity consumption allowance from 200 to 350 kilowatt-hours during the heating season in areas with limited or no access to natural gas.

Obid Ahmedov, head of department at the National Agency for Energy Efficiency, presented existing financial incentives for households and businesses adopting energy-efficient technologies.

Under current support programs, households can receive full reimbursement for residential energy audits, compensation for 20% of solar panel costs and up to 40% of heat pump costs. Businesses can also access financial incentives for renewable energy technologies and energy audits.

Shohijahon Xurramzoda, head of division on the iCRAFT project team, highlighted the importance of cooperation among government agencies, civil society and other stakeholders in implementing social support and energy efficiency measures.

Participants also raised practical challenges in accessing assistance and discussed ways to improve public awareness of available programs.

The session underscored the importance of balancing energy sector reforms with targeted social assistance while expanding household access to energy-efficient technologies.