Tuesday, 16, July, 2019

By the presidential decree, a number of oil & gas, energy sector bodies have been handed over from the Cabinet of Ministers to the Ministry of Energy .

Among them are the Uzatom Agency, the State Authority for Control over Use of Oil Products and Gas, which will no longer be owned by the state, as well as the State Authority for Energy Sector Supervision, which will be reorganized into the Authority for Energy Sector Supervision.

The decree also liquidated the joint-stock company National Energy Saving Company at the request of its shareholders and the National Agency for Project Management.

The decree listed systemic problems in the energy sector. In particular, the lack of coordination and of systemic approach for the development of the oil & gas and energy complex and non-diversifiedness of energy sources which undermine the sustainable energy supply to the economic sectors and households, given the growing demand.

The directive model of managing the energy organizations, excessive administrative regulation of the financial and economic activities of companies, as well as inefficient use of labor reduce the efficiency and effectiveness of their work, leading to an increase in non-production costs and costs per unit of generated energy.

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