Uzbeks to Pay More for Heating

Uzbeks to Pay More for Heating

Monday, 6 April, 2009
Domestic heating costs are going up in the Uzbek capital Tashkent as the government tries to boost revenues during the economic crisis, but the measure is proving an unpopular addition to already overburdened households.



The firm which supplies Tashkent with hot water and central heating says rates are to increase by eight per cent from April 1. Households will be charged for central heating at a rate of just over 20 US cents per square metre of floor area, and it will cost them about 25 cents to fill a bath with 150 litres of hot water.



Since the latest increase comes soon after the last one, in October, many residents of Tashkent are anticipating further rises in utility prices.



Even before the new increase, an average family of three living in a one-room apartment spends 25 per cent of its monthly income on heating and hot water alone.



Feruza, 30, earns 80,000 soms a month - about 60 US dollars – and pays 20,000 soms in bills for these items. “It’s an awful lot,” she said.



Central heating is provided for six months of the year, from autumn to spring, but bills are payable in equal installments over the entire year, in a bid to ease payments for customers. Despite this, many people are behind with their bills.



“The inspectors come round every day and ask people to pay their hot water bills, and they threaten to switch off the supply if they don’t pay,” said Anvar, 35. “Almost everybody in Tashkent has outstanding hot water bills.”



A local observer added, “People don’t have the money to pay bills. Increasing the charges will only lead to more unpaid bills.”



The anti-crisis plan the government adopted late last year made provision for an eight per cent hike in heating and hot water rates, but did not suggest that wages should be index-linked.





Commentators argue that the authorities should act to mitigate the effects of constantly-rising utility costs, especially as these may contribute to more general consumer price increases, fuelling public anger.



Official figures indicate that the inflation rate has been below seven per cent for the last several years, but the International Monetary Fund calculated that inflation was 19.5 per cent in 2006.



“In an environment of mass unemployment and global financial crisis, the fear of inflation could fuel protest sentiment and social tension,” said Komron Aliev, an economist from Tashkent.



(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 has resumed, covering Uzbekistan and Turkmenistan.)
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