Details added (first version posted on 17:23)
BAKU, Azerbaijan, June 30
Trend:
A meeting of the Azerbaijani Tariff Council was held on June 30, Trend reports with reference to the council.
The appeal of the State Oil Company of Azerbaijan (SOCAR) was considered at the meeting and a corresponding decision was made on the regulation of tariffs for natural gas.
According to the decision, 1,200 cubic meters per year will be calculated at the current tariff – 0.10 qepik (5 cents) per cubic meter, from 1,200 to 2,500 cubic meters per year - at the rate of 0.20 qepik (11 cents) per cubic meter, over 2,500 per year - 0.25 qepik (15 cents) per cubic meter.
This decision will not affect the cost of electricity
The reason for reconsidering the gas tariff is an increase in consumption, an expansion of gas supply coverage and an increase in costs as a result of an increase in the number of subscribers by almost 18 percent.
Low gas tariff for the population and an increase in consumption from about 1,300 cubic meters to 1,600 cubic meters for each subscriber compared to 2017, when the recent tariff regulation came into force, as well as an increase in total consumption from 2.7 billion cubic meters to 3.7 billion cubic meters increased the loss in gas supply, which is paid off at the expense of the state budget.
An increase in tariffs is required to improve the quality of service, eliminate dependence on the state budget, ensure investment, completely repay the production costs, and constantly supply consumers with natural gas.
The various options for increasing the tariff were considered during the discussions held at the meeting of the Tariff Council.
The proposed models were evaluated taking into account such issues as ensuring the sustainability of energy security in accordance with the economic policy of the country, purposeful and rational use of resources, compliance with the interests of consumers and producers, social orientation, gradual formation of market relations in the field of gas supply, elimination of subsidies from the state budget, prices for natural resources in other countries, etc.