Unpaid Electricity Bills to Snowball

Unpaid Electricity Bills to Snowball

Saturday, 27 December, 2008
The onset of cold weather in Uzbekistan has resulted in increased energy consumption, and NBCentral Asia observers say large numbers of people will probably be unable to pay for heating and electricity.



According to a December 16 report in Narodnoye Slovo, a state-run newspaper, 70 per cent of the rural population are having difficulties paying their electricity bills and about 56 per cent have not paid at all.



NBCentral Asia observers say these figures reflect reality, and people are unable to meet energy bills because income levels remain very low while prices are rising.



The United Nations Development Programme estimates that around 28 per cent of the country’s 27 people live below the poverty line.



In 2008, the state-owned Uzbekenergo firm increased its charges twice, so that the current rate stands at 4.3 US cents per kilowatt-hour.



Electricity prices in other Central Asian countries are lower; in Tajikistan, for instance, the price is 2.03 cents per kW/hour, while in Kyrgyzstan it is just 1.7 cents.



“People are unable to cover their debts [for electricity and heating] by the time they receive the next bill,” said an employee of the electricity company.



Every month, the average Uzbek family consumes 200 kW/h of electricity, costing the equivalent of nine dollars, and for many of them this is a lot of money.



In winter, many people use electric heaters at home, doubling their power consumption.



“I have to spend half of my pension on paying all the bills,” complained an elderly resident.



NBCentral Asia observers predict that the proportion of bills remaining unpaid will increase, and people will pay only as and when they can afford it.



“Everybody decides for themselves when they can meet unpaid bills,” said Kamron Aliev, an economist from Tashkent. “For example, in rural areas, people usually pay for electricity once every six months, or once a year.”



(NBCentralAsia is an IWPR-funded project to create a multilingual news analysis and comment service for Central Asia, drawing on the expertise of a broad range of political observers across the region. The project ran from August 2006 to September 2007, covering all five regional states. With new funding, the service is resuming, covering only Uzbekistan and Turkmenistan for the moment.)



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