New tariffs for electricity to take effect in Azerbaijan July 15

Business Materials 14 July 2016 20:43 (UTC +04:00)

Baku, Azerbaijan, July 14


New tariffs for electricity will take effect in Azerbaijan from July 15, read a message issued by Azerbaijan’s Tariff (price) Council.

The relevant decision was made during a meeting of the Tariff (price) Council.

The wholesale price for one kilowatt hours of electricity will be 0.043 manats, while the retail price will stand at 0.07 manats for one kilowatt hours from July 15, according to the decision.

Currently, the wholesale price for one kilowatt hours of electricity is 0.045 manats for the electricity generated at wind farms, 0.025 manats – at private small hydro power plants and 0.041 manats for the electricity generated by Azerenergy JSC. The retail price for electricity is 0.06 manats for one kilowatt hours. These tariffs were set in 2007.

The new tariffs are aimed at ensuring the sustainability and persistence of qualitative service in energy supply, reducing the financial dependence and prospective development of the producer and the distribution network, said the message.

“The production capacity of the country’s power supply system has increased from 5,590 megawatts to 7.160 megawatts over the last ten years, while the number of users has reached 2.5 million people,” said the Tariff Council. “All this, as well as the development and expansion of the power network required considerable amount of expenditures and investments, since the cost of transformers, electrical equipment, hardware devices, as well as other raw materials has significantly increased over these years.”

The Tariff Council said that the new tariffs, which are considerably lower than in other countries of the region, make it possible to reduce the dependence of the producer on the state budget and increase the salaries of over 18,000 employees of this system.

The debt of users till July 15 will be calculated based on the old tariffs.