Azerbaijan and Russia Uphold Cost of Electricity Sale-Purchase in 2008

Oil&Gas Materials 2 April 2008 17:15 (UTC +04:00)
Azerbaijan and   Russia Uphold Cost of Electricity Sale-Purchase in 2008

Azerbaijan, Baku, 2 April /corr. Trend S.Aliyev / Russian INTER RAO UES and Azerbaijani Azerenergy JSC abandoned to change the tariffs for electricity sale-purchase, the Vice President of Azerenergy, Marlen Askerov, said on 2 April. The sides decided to decrease only the maximal capacity of the electricity supply from 300 MWt to 120 MWt described in the contract. "Hence, a new contract will not be signed," Aleskerov said.

Earlier the Russian side made a suggestion to equalize the tariffs for the electricity sale-purchase between Azerbaijan and Russia. The Russian side offered to carry out the electricity exchange on the basis of so-called principle 'mirror', i.e. to apply a single cost at 4.3 cent for 1 KWt of electricity for each of the sides.

At present, the volume of electricity produced in Azerbaijan fully satisfies the demand. In 2007, the volume of electricity acquired from Russia decreased by 70% as compared to 2006. Today, Azerbaijan receives the same volume of electricity supplied to Russia.

The electricity exchange between Azerbaijan and Russia is a positive factor. It increases reliability and sustainability of the electricity system of southern region of Russia (Dagestan, Northern Caucasus) and northern regions of Azerbaijan.

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