BAKU, Azerbaijan, October 24. Azerbaijan has defined the principles for the development of activities in the energy sector based on market relations and free competition, Trend reports.
This issue has been reflected in a new draft law "On energy industry" discussed in the Azerbaijani Parliament.
The draft law envisions ensuring the development of activities in the energy sector based on market relations and free competition is through:
- setting prices for goods, works, and services in the energy sector based on supply and demand, except for prices regulated by the state.
- non-interference by the state in the activities of energy entities, except in cases provided for by law.
- contractual regulation of relations between energy entities and between energy entities and energy consumers.
- taking measures to prevent the emergence of monopolies in the energy sector, other restrictions on competition, and/or unfair competition.
The areas of activity of natural monopolies in the energy sector are defined by the Republic of Azerbaijan's law "On natural monopolies" and are carried out in accordance with this law.
In accordance with paragraph 11 of Part I of Article 94 of the Constitution of the Republic of Azerbaijan, the draft law defines the general legal, economic, and managerial bases of activities in the field of energy, as well as mechanisms for ensuring energy security, creating a healthy competitive environment, supporting sustainable economic development, and providing consumers with reliable, high-quality, affordable, and safe energy.
The draft law was put to the vote and adopted in the third reading after discussion.