Energy Tariff Reform in UzbekistanEnergy Tariff Reform in UzbekistanEnergy Tariff Reform in UzbekistanEnergy Tariff Reform in Uzbekistan
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Workshop: International Experience on Energy Tariff Reforms // Семинар: Международный опыт по реформе тарифов на энергоносители

April 19, 2023 | Hyatt Regency Hotel | Tashkent, Uzbekistan // 19 апреля 2023г. | гостиница «Hyatt Regency» | Ташкент, Узбекистан

The event is organized by the:
Ministry of Energy of Uzbekistan, Ministry of Economy and Finance of Uzbekistan
Agency for Strategic Reforms
under the President of the Republic of Uzbekistan
and with the support of the World Bank and ERRA

 

  • Backround / Общая информация

  • Agenda / Повестка дня

  • Presentations / Презентации

    Background Information // Общая информация

    Uzbekistan’s energy sector is a significant contributor to the country’s economy, accounting for about 13 percent of industrial output in 2021. Energy is a source of export earnings, predominantly of natural gas, whose export brought 717 million USD of hard currency to the country in 2021 making 49.8% more revenue than 2020. The energy sector is also among the largest job providers, employing about 150,000 people.

    Uzbekistan ranks among top 25 countries with highest fossil fuel subsidies with total subsides accounting for 6.6 percent of GDP in 2020.  Domestic natural gas prices are underpriced standing at about half of its prevailing cost, entailing significant subsidies across the economy. Similarly, the electricity tariffs stand at around 70 percent of its cost. The current situation of artificially low tariffs and high subsidies results in: (i) large portion of sector assets being obsolete and in need of modernization or replacement; (ii) lack of proper pricing signal for renewable energy scale up – renewable energy capacity addition; (iii) lack of incentives to save energy and optimize energy consumption; and (iv) shrinking the fiscal space with fossil fuel subsidies and narrowing resources for other priorities.

    To tackle all the above-mentioned challenges, the GoU has initiated a broad energy sector reform that envisages addressing fundamental issues and introducing competitive principles in sector management and operations. As part of the energy reform efforts in Uzbekistan, with the support from the World Bank and development partners, the Government has been undertaking major steps in reforming the sector. Sector oversight functions were consolidated under the Ministry of Energy (MoE) established in February 2019 followed by unbundling of Uzbekenergo (UE, vertically integrated power utility) in March 2019, and Uzbekeneftegaz (UNG, vertically integrated oil & gas utility) in July 2019 as first steps toward the creation of a more competitive electricity market in Uzbekistan.

    In addition, energy tariff reforms have commenced and remain a top priority. In April 2019, the GoU adopted a new electricity tariff methodology setting out a path for tariffs to be systematically adjusted to full cost recovery levels. Moreover, supported by the World Bank, the GoU implemented two tariff adjustments in 2018–2019 that collectively increased the weighted‐average tariff of electricity and gas by around 70 percent. However, despite the recent tariff reforms, the current level of retail electricity tariffs stands at around 70 percent and gas tariffs – at 50 percent of its cost-recovery level. Tariff reforms paused in 2020-2021 due to the impacts of COVID-19 and the war in Ukraine and are planned to resume in 2023 to reach power and gas tariffs cost recovery by 2026. To this end, the GoU has requested the World Bank support to organize a workshop on energy subsidy reforms.

    Agenda // Повестка дня

    April 19, 2023
    09:00Registration and social networking // Регистрация и знакомство участников
    09:25Group Photo // Фото группы участников
    Introduction // Введение
    09:30Opening Remarks // Вступительная речь
    • Jurabek Mirzamahmudov, Minister of Energy, Uzbekistan
    • Marco Mantovanelli, Country Manager for Uzbekistan, World Bank
    • Ardian Berisha, Moderator
    09:45Introduction to the program // Введение в программу
    Berisha, Ardian
    Training Expert, ERRA, Managing Consultant, Optima Energy Consulting
    Speaker bio
    Berisha, Ardian
    Training Expert, ERRA, Managing Consultant, Optima Energy Consulting
    Berisha, Ardian

    Ardian Berisha is a regulatory reform specialist and electricity tariff expert with more than 17 years of experience in power sector reform and energy regulation. Ardian supports regulators improve the stability and predictability of their legal and regulatory frameworks for enhanced infrastructure investments through bankable projects and private sector participation.           

    Ardian has worked with donor organizations, IFIs and private clients in more than 40 energy projects in Europe, Middle East, Southern Africa and Eurasia. Ardian spends part of his time advising the Energy Regulators Regional Association and their member regulators to support strengthening and improving regulatory practice among a geographically-diverse member base. He has extensive experience in electricity tariff setting, as a policy developer, implementer and modeler for incentive-based regulation. Ardian is a regular lecturer at ERRA’s Tariff Regulation Courses and provides course directorship for capital review and assessment tools, cost of capital and tariff structuring and design. His work experience includes Eswatini, Moldova, Mozambique, Zambia, Georgia, Oman, Saudi Arabia, Kosovo, Hungary, Cyprus, Albania, North Macedonia, Italy, Sri Lanka, Uzbekistan, Ukraine and the Philippines.

    Ardian holds a Bachelor of Science degree in Economics with Mathematical Emphasis from University of Wisconsin – Madison (US) and a Master of Science degree in Economics for Business Analysis (Applied Econometrics) from Staffordshire University (UK).

    10:00Uzbekistan country presentation // Презентация страны Узбекистан
    • Representative of the Government of Uzbekistan
    Energy subsidy reform: International good practices // Реформа субсидирования энергетики: Передовой международный опыт
    10:25Case Study of Egypt // Пример страны - Египет
    Zoheir, Sherif
    Head of Central department for Electricity Market, Egyptian Electric Regulatory Agency (EgyptERA), Egypt
    Speaker bio
    Zoheir, Sherif
    Head of Central department for Electricity Market, Egyptian Electric Regulatory Agency (EgyptERA)
    Egypt
    Zoheir, Sherif
    Sherif is the Head of Central department for Electricity Market in the Egyptian Electric Regulatory Agency (EgyptERA) starting June 2022, he started working in EgyptERA since December 2001, and he get promoted in 2019 to lead the cost & pricing department. He was assigned to be part of the electricity tariff reform in Egypt. In 2020, he was selected to be a board member in the Waste Management Regulatory Agency (WMRA), He was graduated from the faculty of commerce and business administration in 2001 with a Bachelor's Degree in foreign trade. And now he is preparing his Business Administration Master’s (MBA) in Strategic Management.
    10:45Case Study of India (Online) // Пример страны - Индия (онлайн презентация)
    Devaguptapu, Rajasekhar
    Fellow, Centre for Social Economic Progress, India
    Speaker bio
    Devaguptapu, Rajasekhar
    Fellow, Centre for Social Economic Progress
    India
    Devaguptapu, Rajasekhar
    Rajasekhar Devaguptapu is a Fellow with Centre for Social Economic Progress, New Delhi, India. He is a full-time researcher in the areas of electricity distribution, finances of distribution utilities, power markets, power purchase agreements etc. Earlier he has worked extensively in the areas of policy and regulatory design, efficacy and impact assessment of regulatory mechanisms, deviation settlement mechanism, ancillary services etc. His other research interests include renewable energy, regulatory reforms, electricity access etc. Previously, he was Advisor at Forum of Regulators, Central Electricity Regulatory Commission (CERC), New Delhi, India, and Joint Secretary at Delhi Electricity Regulatory Commission (DERC), New Delhi, India. He also delivers lectures on power sector related topics to the students and trainees of National Power Training Institute, Faridabad, India. He received his Masters in Infrastructure Management with specialization in restructured power systems from TERI University, New Delhi.  
    11:05Case Study of Latvia // Пример страны - Латвия
    Snuka, Rota
    Commissioner, Public Utilities Commission (PUC), Latvia
    Speaker bio
    Snuka, Rota
    Commissioner, Public Utilities Commission (PUC)
    Latvia
    Snuka, Rota

    Rota has served as a commissioner on the Public Utilities Commission (PUC) in Latvia since July 2016, mainly working with energy and water sector regulation. During this tenure many key changes were implemented in the regulation policy. For example, the introduction of auctions for the underground gas storage capacity reservation has been delivered effectively since 2020. The energy system tariffs have become more cost reflective by introducing capacity payments for all system users. The Finnish Baltic regional gas market integration resulted in gradual elimination of entry/exit tariffs between internal borders. Her regulatory consulting experience includes countries like Ukraine, Israeli, Kyrgyzstan, and North Macedonia.

    From 2011 until 2016, Rota held the senior official position at the Ministry of Economics in Latvia where she oversaw all energy-related issues. Among her key priorities in this capacity were: Development of energy policy along with gas and electricity market liberalization, unbundling of vertically integrated gas and electricity undertakings, investments into infrastructure, as well as revision of renewable energy support policy.

    Rota holds a Master’s degree in applied mathematics from Riga Technical University, a PhD in Economics from Latvia University of Life Sciences and Technologies and obtained BSc in Law from University of Latvia.

    11:25Q&A // Вопросы и ответы
    11:50Coffee break // Перерыв на кофе
    12:10Case Study of Vietnam (Online) // Пример страны – Вьетнам (онлайн презентация)
    Derbyshire, William
    Director, Economic Consulting Associates (ECA), UK
    Speaker bio
    Derbyshire, William
    Director, Economic Consulting Associates (ECA)
    UK
    Derbyshire, William
    William Derbyshire is a Director with Economic Consulting Associates, based in Bangkok. ECA specialises in the application of economics to energy markets, including regulatory and policy advice, costing and pricing studies, investment planning and asset valuations. William has over 25 years of experience, the last 20 of which have been focused on the ASEAN region. He has been working on a near-continual basis in Viet Nam’s power sector since 2006, including as an advisor to the Electricity Regulatory Authority on introducing competitive generation markets, on network pricing and on market modelling. Outside of Viet Nam, he has led cost of service and energy pricing studies in countries including Indonesia, Malaysia, Singapore and Thailand. William can be contacted at william.derbyshire@eca-uk.com.
    12:30Case Study of Azerbaijan // Пример страны – Азербайджан
    Maharramli, Shahin
    Head of Tariff Sector, Azerbaijan Energy Regulatory Agency (AERA), Azerbaijan
    Speaker bio
    Maharramli, Shahin
    Head of Tariff Sector, Azerbaijan Energy Regulatory Agency (AERA)
    Azerbaijan
    Maharramli, Shahin

    Shahin joined Azerbaijan Energy Regulatory Agency in 2019 and gained valuable experience in energy sector regulation. Since the period when he started working at the regulator coincided with reforms in the energy sector of Azerbaijan, he has been actively involved in the preparation of new laws, improvement of legislative framework, designing renewable energy support schemes and cost-based Tariff Methodologies for calculating electricity, gas and heating tariffs.

    Shahin actively cooperates with international organizations including European Development Bank, Asian Development Bank, ERRA and exchanges ideas with experts from various European countries and plays crucial role in the study of international experiences.  

    He also closely participates in the projects on the green energy zone to be created in the Karabakh region of Azerbaijan and specifically makes vital contributions on the valuation of energy efficiency measures, calculation of district heating and renewable energy tariffs, and designing of new electricity tariff schemes.

    Shahin holds a Bachelor of Science degree in Economics from Baku Engineering University (Qafqaz University) and a Master’s Degree in Management Economics from Xiamen University (China). He taught Microeconomics and Economic Policy at Azerbaijan State University of Economics (UNEC) as a visiting lecturer and has publications related to energy and labor economics.

    12:50Case Study of Georgia // Пример страны - Грузия
    Sanikidze, Givi
    Head of Tariff and Economic Analysis Department, Georgian National Energy and Water Supply Regulatory Commission (GNERC), Georgia
    Speaker bio
    Sanikidze, Givi
    Head of Tariff and Economic Analysis Department, Georgian National Energy and Water Supply Regulatory Commission (GNERC)
    Georgia
    Sanikidze, Givi

    Givi is a tariff expert with 10+ years of experience in energy sector tariff regulation, specializing in economic regulation of regulated infrastructure and electricity tariffs. As a head of tariff and economic analysis department at GNERC, Givi has been actively involved in the tariff reform process in Georgia in terms of development of new energy legislation and frameworks and the development of new tariff methodologies for the electricity, natural gas, and water supply sectors, that have resulted in improved regulatory framework and increased investments in Georgian energy sector. He also actively participated in various international partnership programs organized by the European Union, the Energy Community and NARUC. Givi holds a PhD in Energy and Power Engineering from Georgian Technical University (GTU) and MA in economics from the Kutaisi State University (KSU).

    13:10Case Study of Türkiye // Пример страны - Турции
    Kölmek, Mehmet Ali
    Head of Tariffs Department, Energy Market Regulatory Authority (EMRA), Türkiye
    Speaker bio
    Kölmek, Mehmet Ali
    Head of Tariffs Department, Energy Market Regulatory Authority (EMRA)
    Türkiye
    Kölmek, Mehmet Ali
    Dr. Mehmet Ali Kölmek is head of Tariffs Department in Energy Market Regulatory Authority (EMRA) of Türkiye where he also worked as assistant energy expert, energy expert and group head at several divisions such as electricity distribution group, organized wholesale markets group, electricity tariffs group and market monitoring & financial risk group. EMRA is the sole independent regulator of electricity, natural gas and oil markets in Türkiye. Dr. Kölmek’s department is responsible for determination of regulated tariffs for electricity & gas markets; where they monitor the oil market for necessary interventions. Dr. Kölmek has a B.S. degree in Electrics & Electronics Engineering from Bilkent University, M.Sc. Degree in Electronics Engineering from Ankara University and MBA degree in Energy Management from Technical University of Berlin. He earned his Ph.D. in Energy Systems Engineering from Gazi University. Before EMRA, he worked as an engineer for Turkish Electricity Transmission Company and Turkish Radio & Television Agency.
    13:30Q&A // Вопросы и ответы
    Lessons learned and next steps // Извлеченные уроки и следующие шаги
    13:55Summary of the subsidy reform process, lessons learned, next steps // Резюме процесса реформы субсидий, извлеченные уроки, рекомендации для Узбекистана
    • Maksudjon Safarov, Senior Energy Specialist, World Bank
    • Ardian Berisha, Regulatory Specialist, ERRA
    14:15Closing Remarks // Заключительное слово
    • Sudeshna Ghosh Banerjee, Practice Manager for Europe and Central Asia Energy, World Bank
    • Jurabek Mirzamahmudov, Minister of Energy, Uzbekistan
    14:30Program ends & Lunch // Завершение программы и обед

    ERRA reserves the right to change the published agenda at any time during the organisation and implementation of the programme.

    Workshop presentations

    • Introduction to the program
    • Case Study of Egypt
    • Case Study of India (Online)
    • Case Study of Latvia
    • Case Study of Vietnam (Online)
    • Case Study of Azerbaijan
    • Case Study of Georgia
    • Case Study of Türkiye
    • Lessons learned and next steps

    Презентации семинара

    • Введение в программу
    • Пример страны - Египет
    • Пример страны - Индия (онлайн презентация)
    • Пример страны - Латвия
    • Пример страны – Вьетнам (онлайн презентация)
    • Пример страны – Азербайджан
    • Пример страны - Грузия
    • Пример страны - Турции
    • Извлеченные уроки и следующие шаги
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