Oil&Gas Materials 11 July 2005 16:57 (UTC +04:00)

“Barmek Azerbaijan, the operator of the energy distribution networks of Baku and Sumgayit, has paid 1.4trln manats (more than $297m) to Azerenerji Joint Stock Company (JSC) for energy supply,” Trend reports quoting Husseyn Arabul, the President of Barmek Azerbaijan, as saying on Monday.

“The company remits to the company 40bn manats a month in average. In accordance with the contract we are due to pay to Azerenerji 75% of value of the energy supply in 2005.

We have paid more than target. Therefore, the claims by the JSC on non-payment for the supplied energy contradict the reality,” he said.

Barmek Azerbaijan paid to JSC 463.2bn manats ($98.5m) in 2004. The amount of the payments comprised 382bn manats ($81,2mn) in 2003, and 342bn manats ($72.7m) - in 2002.

Arabul noted that in accordance with the contract Barmek Azerbaijan holds a right to chose itself a source of purchase of electric energy. “It might be Russia or Ukraine.

We prefer Azerenerji, as it sells energy at low prices вЂ" 1.5 cent for 1KW/hours. The Russian electricity costs 2.5-3 cents. If we decide to change the source of purchase of energy, it will result in rise of energy tariffs in Azerbaijan,” he said.