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RESOLUTION OF THE CABINET OF MINISTERS OF THE REPUBLIC OF UZBEKISTAN

of April 13, 2019 No. 310

About measures for further enhancement of tariff policy in electric power industry

According to the resolution of the President of the Republic of Uzbekistan of October 23, 2018 "About measures for the accelerated development and ensuring financial stability of electric power industry", and also for the purpose of enhancement of tariff policy in the electric power industry providing the calculation of electricity tariffs based on covering of the current and capital expenditures, stimulating attraction of private sector in electric power industry, the Cabinet of Ministers decides No. PP-3981:

1. Approve:

The main directions of tariff policy in electric power industry of the Republic of Uzbekistan for the period till 2030 according to appendix No. 1;

Regulations on procedure for forming of electricity tariffs according to appendix No. 2 and to enact it since January 1, 2020.

2. Form the Interdepartmental tariff commission under the Cabinet of Ministers of the Republic of Uzbekistan in structure according to appendix No. 3.

3. To the Ministry of Finance of the Republic of Uzbekistan:

in two-month time together with the Department of Energy, the Ministry of housing-and-municipal servicing and the Ministry of investments and foreign trade of the Republic of Uzbekistan and other interested ministries and departments with technical assistance of the international financial institutions to introduce in accordance with the established procedure to the Cabinet of Ministers the draft of the government decision providing the organization of activities of the Interdepartmental tariff commission under the Cabinet of Ministers of the Republic of Uzbekistan;

in a month together with the interested ministries and departments to bring the regulatory legal acts adopted by them into accord with this resolution.

4. To impose control over the implementation of this resolution on the deputy prime minister of the Republic of Uzbekistan - the Minister of Finance D. A. Kuchkarov and the Minister of Energy of the Republic of Uzbekistan A. S. Sultanov.

Prime Minister of the Republic of Uzbekistan

Abdullah Aripov

Appendix No. 1

to the Resolution of the Cabinet of Ministers of April 13, 2019 No. 310

The main directions of tariff policy in electric power industry of the Republic of Uzbekistan for the period till 2030

Chapter 1. General provisions

1. These Main directions of tariff policy in electric power industry of the Republic of Uzbekistan for the period till 2030 (further - tariff policy) determine practical mechanisms of realization of state policy of regulation of pricing on the electric power taking into account strategic tasks by steady power supply of the population and industries of economy on the basis of the principles of achievement of financial stability of electric power industry and further development of energy infrastructure.

The main directions of tariff policy upgrades and diversifications of the generating capacities with finishing them to 20 thousand MW during the period till 2030 according to the resolution of the President of the Republic of Uzbekistan of October 23, 2018 No. PP-3981 "About measures for the accelerated development and ensuring financial stability of electric power industry" are developed for the purpose of ensuring electrical power safety of the Republic of Uzbekistan, taking into account expansion.

2. The main directions of tariff policy are:

providing to consumers of access to the electric power on reasonable and competitive rates;

ensuring financial stability and investment appeal of electric power industry;

expansion, upgrade and diversification of the generating capacities, including on the terms of public-private partnership, ensuring efficiency of productive activity, improvement of quality of the made products and the rendered services;

establishment of the principles of pricing on the electric power aimed at providing complete covering of operating and capital costs, necessary net profit of the organizations of electric power industry in transition period;

step-by-step cancellation of practice of cross subsidizing in case of establishment of rates, with ensuring social protection of needy and vulnerable segments of the population by provision of address subsidies according to the procedure approved by the Ministry of Finance and the Ministry of Economy and Industry of the Republic of Uzbekistan;

establishment of transparent, consecutive and predictable regulation of electric power industry, including step-by-step implementation of practice of establishment of rates for the long-term period, for decrease in feeling of regulating risk from investors;

implementation of the differential tariffs after full-scale implementation of the automated control system and accounting of the electric power of all customer groups;

phased transition till 2023 to technique of forming of rates taking into account the advanced international practice.

3. The main directions of tariff policy are based on the following principles:

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