Catering businesses in Uzbekistan demand compensation for power outages

Frequent unscheduled power outages – up to 8–10 times a day at some establishments – are causing business losses and damaging equipment, say entrepreneurs in Uzbekistan.

During an open dialogue held on July 14 with representatives from the catering and retail sectors, organized by the Chamber of Commerce and Industry of Uzbekistan, business owners proposed introducing a compensation mechanism for electricity outages and holding the Regional Electric Networks (RES) accountable.

Nargiza Ulugova, co-founder of the café chain TESTO, said her café cannot operate without electricity. While acknowledging that there are "unresolvable problems" related to electricity shortages and aging infrastructure, she emphasized that unannounced emergency outages – sometimes up to 10 times a day – are breaking equipment and reducing sales.

"I’d like to raise the issue of compensation from the electricity supplier. We all operate on deposits and pay rates – these are not small amounts for a business. Can a compensation mechanism be introduced?" Ulugova asked.

Alina Zimmermann, managing partner of the coffee chain ChayKof and café Moloko, supported Ulugova’s proposal. She noted that power outages occur daily, and in some cases, the same establishment experiences up to 8 outages a day. "How do you think the equipment feels after 8 outages?" she questioned.

Zimmermann stressed that businesses are not given prior notice about outages and that reaching the RES call centers is virtually impossible 80% of the time.

"My staff call RES about 80 times – they just don’t answer. Sometimes I have to go there in person. The last time I went to the RES office in Yakkasaray district, I entered the dispatch room and asked: Why don’t you answer the phone? They replied: We’re on lunch break. When I asked why the power was cut, they said: We don’t know, TashgorRES cuts it off due to high voltage. What does that have to do with us? We’re legitimate consumers – we have a contract that clearly states the supplier is obligated to notify us about outages. No one has the right to just cut the power off without warning," Zimmermann recounted.

She also criticized the lack of accountability on the part of Regional Electric Networks for violating contractual obligations.

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