The Azerbaijan Finance Ministry denied indirect subsidizing the fuel and energy complex of the country in 2007, even though 220 mln. AZN was allocated in the State Budget for this purpose.
Trend was informed in the Ministry today, that the decision is linked with the advance in the tariffs on electric power in more than 2 times in accordance with the decision made by the Tariff Council of the Country on January 6, 2007.
Due to the increase in the tariffs for the population from 2 gapik to 6 gapiks per 1 Kwatt/hour, Azerenerji, Azerbaijan major electric power generator can further cover the prime cost of the electric power generation at its own expense. Both in 2007 and 2006, indirect subsidizing were considered for Azernerji JSC.
While preparing the state budget an amendment was made that in case of increase in tariffs, the Government might remove subsidies. Thereby, Azerbaijan has fulfilled another recommendations put forward by international financial institutions. They have proposed Azerbaijan to reject the indirect subsidizing policy.