BAKU, Azerbaijan, February 21. The regulated prices and tariffs in Azerbaijan's electric power industry are set by the regulator, Trend reports.
This issue is envisaged by the bill "On Electric Power", which was discussed at today's meeting of the Parliamentary Committee on Natural Resources, Energy, and Ecology.
The establishment of an energy regulatory body is a key factor for the successful fulfillment of strategic objectives, which was approved by the Minister of Energy of the Republic of Azerbaijan on July 23, 2015. Such a regulator in Azerbaijan was launched in December 2018.
According to the draft law, the prices and tariffs regulated in the electricity sector are as follows: electricity transmission tariffs, electricity distribution tariffs, tariffs for market operator services, prices for connection services to transmission and distribution networks, electricity delivery tariffs by an authorized supplier to consumers, envisaged by Article 19.8 of the bill.
Prices (tariffs) in the electric power sector should ensure electricity development and stimulate social and economic advancement, fully covering the reasonable costs of subjects for electricity transmission and distribution.
The rules for establishing regulated prices (tariffs) in the electric power industry are approved by the regulatory body and published on its official website.
Losses to be taken into account while determining prices (tariffs) are calculated in a manner to define electricity loss indicators by transmission and distribution system operators, for the reporting period.
Market pricing mechanisms in the wholesale electricity market are developed on the supply-demand balance based on the price offers of electricity buyers and sellers, as well as on the pricing by the parties to the electricity purchase and sale agreement.
Submission of price offers and pricing in the wholesale market are determined by the wholesale market and the balancing rules. In the bilateral contract market, buyers and sellers of electricity freely set the terms of bilateral contracts and prices.