Debts to Sumgayitelektrikshebeke is due to Low Level of Collection of Water Consumption Charges: Department Head of Azeru

Business Materials 20 May 2008 17:53 (UTC +04:00)
Debts to Sumgayitelektrikshebeke is due to Low Level of Collection of Water Consumption Charges: Department Head of Azeru

Azerbaijan, Baku, 20 May / Trend corr S. Babayeva/ Azersu JSC reported that its debt to Sumgayitelektrikshabaka OJSC for consumed electric energy was caused by poor collection of charges for consumed water from subscribers.

"Our debt to Sumgayitelektrikshabaka is valid. It occurred due to poor collection of charges for consumed water," Agshin Rustamov, head of the PR Department of Azersu said on 20 May.

According to Rustamov, in January to April collection of charges for water and sewerage services totalled only 68.4%, including 46% from the population. Population comprises 80% of Azersu's subscribers.

"We try to pay off our debts as far as possible. It should be taken into consideration that along with debts Azersu also spends money for repair and construction, purchase of re-agents for water purification, pays off taxes and budget transfers, pays off the credits of the World Bank and the European Bank for Reconstruction and Development," Rustamov said. Energy resources comprise 45% of the prime cost of 1 cu m of drinking water produced by Azersu.

Azersu pumps, energy supply to which was cut by Sumgayitelektrikshabaka yesterday, provide water to 70% of Sumgayit and the entire Binagadi region of Baku.

The water pumps are located in the base of the Jeyranbatan reservoir.

The distribution net of the Sumgayitelektrikshebeke cut off power supply supplied by Shimal-1 line. "If Azersu does not began to pay debts, the Shimal-2 line will be cut off as well which supplies water pumps which pump water to the majority of the districts of Baku," Sumgayitelektrikshebeke said on 19 May.

According to Sumgayitelektrikshebeke, the power supply was cut off because of the big volume of the debts of Azersu (1 January 2008) totaling to AZN38mln. The debts of Azersu increased by AZN3.45mln in January-April 2008.

"Power supply will be restored when the problem of debts will is addressed and agreement is signed on its adjustment," a source in Sumgayitelektrikshebeke said.

According to Rustamova, in January to April Azersu paid Sumgayitelektrikshebeke AZN795,300 while it paid only AZN234,100 during the same period of 2007. According to the recent agreement between the parties, Azersu must pay Sumgayitelektrikshebeke AZN750,000 quarterly.

"We [Azersu] try to address this problem by means of talks and at present it is very important for us," a representative of Azersu said.