State Joint-Stock Company «Uzbekenergo» (SJSC «Uzbekenergo») was established in the form of open joint-stock company in 2001 by Decree of the President of Republic of Uzbekistan based on the structural divisions of the formal Ministry of Power Industry and Electrification.

The further improvement of management structure of Electric Power Industry and coal branches is performed by the company, and production field coordination improvement, transportation and distribution of electric power and coal.

For the purposes of stable power supply of economic branches and population of the Republic, steady and balanced development of Electric Power and Coal Branches, production field coordination improvement and distribution of electric power and coal, the Resolution of Cabinet of Ministers № 290 “On improvement of organization activity of SJSC “Uzbekenergo” dated June 21, 2004 was adopted.

The further development of demonopolization, privatization and corporatization of enterprises of Power Industry Branch, precise sharing of functions of the enterprises of branch ensuring power generation, its transportation and distribution, and also its contingence, balance and close interaction are provided by Resolution.

On the basis of main electrical networks of Unitary Enterprise «Uzelectroset», 5 branches of power transmission - Central, East, Southern, South West and North West МESN were established. The distributing mains of 35 and 110 kW were made over from the balance sheet of UE «Uzelectroset» to balance sheets of the regional enterprises on distribution and sale of the electric power.

At this stage, the company structure comprised of 53 enterprises and organizations, including 37 open joint-stock companies (and ОJSC « Uzbekugol»), 12 unitary enterprises, 3 societies with limited liability and company branch- « Energosotish».

The process of branch reforming with split-up of exclusive (dispatch and transmission of the electric power) and competitive (sale and generation) type of activities and introduction of elements of the market relations in sector of Electric Power Industry is underway.

In accordance with Decree of the President of Republic of Uzbekistan N0PP-407 dated 10.07.2006 “On extension of the process of demonopolization and privatization for 2006-2008”, the sale of blocks of shares of 26 joint-stock companies was envisaged, where the blocks of shares of 25 joint stock companies will be sold based on decision of State Tender Committee (blocks of shares of OJSC” Energoimpex” will be sold through stock exchange or auction and competitive bids).

The sale of state holdings was provided:

• Providing incurrence of investment liabilities, 12 distribution and sale joint stock companies (15%), 9 – electric and thermal power generating companies (15%);
• Joint stock companies, established on the basis of state enterprises – 3(OJSC”Gigrospetstroy”–44%,OJSC”Uzbekgidroenergokurilish”-45,88%, OJSC”Uzbekugol”-35,5%).

During 2007-2008 the state blocks of shares of JV” Kaolin”(56%) and OJSC ”Energoimpex” (25%) were planned to be sold to private ownership.

In 2006 , the blocks of shares at the amount of 9626,0 mln sums were sold, including OJSC” Fergana electric networks” at the amount of USD3759,7 thousand and OJSC”Bukhara electric networks” at the amount of 237,9 mln. sums.

The decision for sale of blocks of shares of 8 joint stock companies (Gidrospetstroy, Uzbekugol, Uzbekgidroenergokurilish, Andigan, Karakalpak, Tashkent, Djizak electric networks, and Tashkent city electric network enterprise) has taken by State Tender Committee at the end of 2006.

At present, the State Property Committee is considering the offer of JV”Electroizolit” for purchase of blocks of shares of OJSC”Gidrospetstroy”, the deadline for submission of bids for purchase of blocks of shares of OJSC”Uzbekugol” was extended for 3 months based on the request of potential investors.

The appraisal company CJSC “Bakholash consulting markazi” is in process of completion of the estimating of Talimardjan TPP for the purpose of its transformation into joint- stock company.

In accordance with Decree of the President of Republic of Uzbekistan from 27.09.2006 “About measures on further development of equity market”, the Open Joint Stock Company worked out the Business Plans for Development for 2007 approved by Supervisory Board of joint stock companies during the meetings.