Tashkent, Uzbekistan (UzDaily.com) — On 12 August, at a session of the Tashkent City Kengash of People’s Deputies, the newly appointed CEO of Veolia Energy Tashkent, Sevara Pardaeva, who assumed her duties on 1 August, presented for review and approval information regarding the planned increase in heat energy tariffs. Her address took the form of a briefing with answers to questions raised, the main one — the reasons for raising tariffs — being objective in nature.

From 1 May 2025, tariffs for gas and electricity were increased, and from 15 June 2025, the cost of purchased heat also rose. A revision of the tariff for a heat supply company, which essentially acts as a distributor of heat from the producer to the end consumer, is a natural step. The increase in energy carrier prices amounted to: gas — 20%, electricity — 11%, and purchased heat — 13%.

At the same time, the heating tariff is increasing by only 7.1% — from 664,465 to 711,641 soums per 1 Gcal. The tariff for households will rise by 15% — from 121,617 to 139,860 soums per 1 Gcal, which is still far below cost price.

Currently, the heating service is subsidized by the state. Under the current tariff, consumers pay 18% and 82% is covered by state subsidies. At present, this is one of the most heavily subsidized sectors of the local budget. After the tariff increase in October 2025, the ratio will be as follows: the public will pay 19.7% of the total tariff, while state subsidies will cover 80.3%.

The government’s strategy is aimed at changing this situation, with the complete cessation of heating subsidies by 2030. This strategy formed the basis of the public-private partnership agreement signed with Veolia Group in 2021. According to the approved financial model, tariff adjustments for households were to be made annually at 30%, but for various social reasons this process has been delayed. Only in 2024 was the heating tariff revised twice in one year, each time by 15%. At the same time, the company’s own tariff remained unchanged, and it managed to maintain service costs for two years without increases through optimization processes.

Tariff for budget-funded organizations and other legal entities.

The gradual reduction of state subsidies is being carried out in accordance with the instruction of the Cabinet of Ministers dated 17 January 2024 No. 03/1-3480. This is part of a policy to reduce the budget burden and ensure a fairer distribution of costs among consumer categories.

The 18.8% increase in the tariff for budget-funded organizations (from 801,963 to 952,797 soums/Gcal) is linked to the rising cost of energy resources as well as the reduction of benefits. In this case, to avoid an additional financial burden on legal consumers, the tariff for budgetary organizations remains at this level. This approach helps maintain balance in the heating system and prevents a sharp increase in costs for businesses.

The tariff for legal entities was previously significantly below cost — 244,497 soums/Gcal. The 40% increase (to 342,296 soums/Gcal) is a step toward the gradual alignment of prices with other categories and the reduction of cross-subsidization, in which one group of consumers covers part of another’s costs.

In the future, tariffs for budget-funded organizations and legal entities will gradually be aligned, approaching a single average level. This will help reduce the imbalance in heating costs among consumer categories, ease the burden on the city budget, and ensure fair cost distribution.

How is the company raising tariffs less than other utility providers?

The first and most significant factor is loss reduction. Between 2022 and 2024, losses were reduced from 44.3% to 33.4%. Ninety-seven percent of this reduction was achieved through: capital repairs of boilers, replacement of thermal insulation, current repairs, elimination of accident damage (22%), replacement of worn pipes (70%), and capital repairs of pumping stations (5%). The company also uses funds efficiently to cover other production and administrative costs, introducing internal budget limits and implementing optimization processes.

Why are there so many excavations in the city and why do repair works take so long?

Today, about 68% of heating networks require modernization, and the company is already implementing a comprehensive upgrade program. For comparison, in 2021 this figure was 71.8%, and before Veolia arrived, the level of wear was only increasing. With the company’s arrival, the share of networks requiring modernization began to decline.

However, considering that almost two-thirds of heating networks still need replacement, and that this volume grows annually due to the natural aging of infrastructure, the result achieved so far can be considered an important and significant step forward.

From July 2022 to 2025, Veolia Energy Tashkent has been carrying out large-scale modernization and repair work on heating supply facilities:

Replacement of pipelines: In 2022, 39.4 km were replaced. In 2023 — 66 km. In 2024 — 82 km. For 2025, 73.5 km are planned. The total volume replaced over the period will be 187.4 km.

Restoration of pipeline thermal insulation: In 2022, 11.4 km were restored. In 2023, with a plan of 19 km, 31.7 km were actually restored. In 2024, with a plan of 34 km, 47 km were restored. For 2025, 21.5 km are planned. Total over the period — 90.1 km.

Capital repair of boilers in local boiler houses: In 2022, 3 boilers were repaired. In 2023 — 27 boilers, in 2024 — 29 boilers. For 2025, 23 boilers are planned. Total — 59 boilers.

Capital repair of pumping stations: In 2022, 1 station was repaired. In 2023 — 6 stations, in 2024 — 12 stations. For 2025, 13 stations are planned. Total — 19 pumping stations.

In 2022–2024, thanks to the company’s systematic work, 225 million m³ of gas, 49.6 million kWh of electricity, and 29.3 million m³ of hot water were saved.

Plans for 2025–2026 include current repairs and replacement of 474.13 km of worn sections. A 24/7 dispatch service operates to respond promptly to emergencies. Plans also include the capital replacement of 73.5 km of heating mains, restoration of 21.34 km of thermal insulation, modernization of 23 local boiler houses and 13 pumping stations, and replacement of 669 valves and 345 compensators.

All these works are aimed at improving the quality and efficiency of heating supply. However, the fact remains that the heating system is in a condition requiring massive capital investment, which unfortunately cannot be completed in a short period and is planned over the next 10 years. This increases the readiness load for emergency repairs, which may grow year by year as the system continues to age. Given this situation, the company is planning increased mobility and readiness for emergency elimination, improving work with contractors to control the timely and high-quality completion of contracted work.

Why can’t the city be switched entirely to local boiler houses?

The issue of local boiler houses is closely tied to efficiency and economical gas consumption. In densely populated areas, the use of local boiler houses is inefficient. However, in certain districts of the city where large boiler houses are currently operating at half their capacity, such a system is inefficient.

In these areas, a transition to several local boiler houses, more efficient and economical for specific parts of the city, is planned. It should be noted that 9 large heat generation plants belong to the heat producer LLC “Toshkent issiqlik markazi” and one belongs to JSC “Toshkent issiqlik elektr stansiyasi.” Veolia Energy Tashkent purchases about 90% of its heat energy (hot water) from these producers and delivers it to the capital’s consumers. The company’s own boiler houses supply about 10% of the total volume.