The Azerbaijani government should increase tariffs for electric energy taking into consideration the demand of the poor levels of the society if it seeks establishment of effective and long-term functioning energy sector, McNeill Watkins, the head of the project working group PA Consulting Group, told Trend.
“The current tariffs cover half of prime cost of energy production and the government continues to subsidize annually $700 million in the sector,” he underlined.
The leadership of the Azerenerji JSC said that the department occurred losses as prime cost of 1 KW/H energy comprised 120 manats, but it was sold to the energy distribution companies Barmek and Bayva for 71 manats.
The population pays 96 manats for 1 KW/H electric energy, while the tariffs for state establishments and enterprises comprise 153.4 manats. Commercial organizations purchase the same volume of energy for 295 manats.