Roadmap Tariff Reform for Improved Sector Sustainability

( ADB: Uzbekistan, June, 2018 - May, 2019, Client: Uzbekenergo, ADB, Budget: 768,780 EUR )

Title: Roadmap Tariff Reform for Improved Sector Sustainability

Budget: 768,780 EUR

Country: Uzbekistan

Dates: June, 2018 - May, 2019


The objectives of the project are to assist the government of Uzbekistan and Uzbekenergo in establishing a cost recovery tariff and optimised tariff structure to contribute to the financial sustainability of Uzbekenergo.


The expected outputs of the project are described below:

a) Determining the real cost of electricity generation, transmission, and distribution;

b) Designing a cost recovery tariff strategy;

c) Designing a tariff structure with a differentiated tariff for classes of customers to replace the current, single tariff for all customers which allows cross-subsidization between customer classes; and

d) Developing a roadmap for a gradual increase in tariff to full cost recovery level by 2023. The Technical Assistant will reference international best practice in cost recovery tariff design in the power sector and assess the potential application and benefits specific to Uzbekistan's power sector

  • Review the efficiency and effectiveness of operational and administrative functions as determine cost of power generation, transmission and distribution

  • Review the current tariff setting policies and methods as input to developing a new tariff methodology and tariff levels for different categories of consumers and for transfer pricing

  • Conduct an analysis of the revenue requirements and efficiency measures needed to meet the projected cost of electricity supply

  • Develop options for a tariff structure and tariffs for different categories of consumers

  • Propose changes to the regulatory framework to enable the introduction of the proposed tariff structure

  • Set specific targets and develop a Financial Recovery Plan including a roadmap and an implementation plan for the power sector of Uzbekistan

  • Support the implementation of tariff reforms through a public information campaign, education, a study tour and on the job training and support.

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