Negotiations on Supplying Azerbaijan with Electric Power in 2007 Started in Baku

Oil&Gas Materials 15 December 2006 16:02 (UTC +04:00)

Azerenerji JSC has started negotiations with representatives of RJSC EES Rossiyi about the volume and the price of electric power envisaged to supply Azerbaijan in 2007, Marlen Asgarov, Vice-President of Azernerji, said, Trend reports referring to Azernergi.

The Azerbaijani party has took proposes put forward by the Russian counterparts into consideration, and for its part, has formed its own conditions.

A time-out needed for thorough study of the positions. The opinion exchange will be continued in Baku after the partners get acquainted with the point of view of the counter agents.

Azerbaijan reached an agreement with Russia on the issue on supplying the country with electric power till the end of 2006. The cooperation will be continued on the basis of the existing conditioned till the end of 2006.

In 2007, Azerbaijan is about to buy 700 mln. KWatt/hour from Russia. The Russian party has decided to increase the tariffs on its electric power till 4,1 cents per 1 KWatt/hour.

In 2005, Russia supplied Azerbaijan with 1 bln. KWatt/hour of electric power. The cost of the supplies was 2,8 cents per 1 KWatt/hour. In 2006, the Russian party supplied Azerbaijan with 770 mln. KWarr/hour at the price of 3,636 cents per 1 KWatt/hour.

At the same time, Georgia has completed paying its energy debts of 13 mln. KWatt/hour to Azerbaijan for energy power supplied earlier. However, Mr. Asgarov pointed out that Georgia still keep on supplying the country with electric power. As soon as possible, Azerbaijan will return this volume of electric power to the Georgian party.