Russia Offers to Increase Prices for Electric Power Delivered to Azerbaijan

Oil&Gas Materials 22 November 2006 17:47 (UTC +04:00)

Russia made aware the Azerbaijani Government that it intends to increase the prices for the delivered electric energy by 13%. In result, the cost of the electric power will increase by 4 cents, the Vice President of Azerenerji Marlen Askerov said, Trend reports.

In addition, Russia announced its intention to decrease the volume of the delivered electric power up to 60 mVt. Presently, Russia delivers nearly 300 mVt electric power to Azerbaijan. Of course, decreasing the volume of the electric power does not satisfy us because problems may appear in providing the consumers with the electric power. Therefore, various options are considered. If Russia does not give consent to deliver us with more than 60 mVt, our situation will be difficult. Therefore we should define other options Askerov said.

Such decision of the Russian side is linked with the 20% deficit with electric power in Russia. Although the period of the contract with Russia will conclude on November 30, the date of the next negotiations with Russia has not been fixed yet. The Vice President does not exclude the possibilities of receiving electric power from Iran. But taking into consideration the condition of the electric lines, the volume of the delivery can not exceed 130-150 mVt. We may use the Iranian option, but this volume is very limited for us. There can be no problems with the Iranian side in the electric power delivery because they make it considering the increase in the summer period, Askerov said.