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Azerbaijan Prepared to Refuse from Russian Electricity Imports

Oil&Gas Materials 5 April 2007 12:14 (UTC +04:00)
Azerbaijan Prepared to Refuse from Russian Electricity Imports

Azerbaijan, Baku / corr. Trend S.Aliyev / Marlen Asgarov, vice-president of Azerenerji state energy company, stated that Azerbaijan is prepared to refuse Russian electricity imports, unless the sides fail to reach an agreement on cur in tariffs. At the present time Azerbaijan does not depend on Russian electricity, he noted.

During talks in Baku the sides reached a preliminary agreement on cut in import tariffs from 3,636 cents per 1 kW/h to 3.4 cents per 1 KW/h. However, later Russia did not confirm this change and as result, import for halted.

At the present time Russia and Azerbaijan continue energy exchange on a zero level at prices coordinated previously. Azerbaijan returns to Russia electricity in the volume of supply.

The existing agreement for the electricity supply had been designed only for 2007. However, the prices were accepted only for the first quarter.

In the first quarter of 2007 Azerbaijan imported the Russian electricity at the same prices applied in 2006 - 3,636 cents per 1 KW/h. However, Azerbaijani electricity to be delivered to Russia has increased from 1.58 cents per 1 KW/h to 1.8 cents. In accordance with the agreement, Russia supplies Azerbaijan with electricity at the capacity of 200-250 MW during busy periods at a time when Azerbaijan has an electrical power shortage

The difference in import and export tariffs is explained by the application of special co-efficiencies. It differs depending on day, night and busy periods. In daytime the co-efficiency is 0.7 and busy period - 1.6-1.7. Azerbaijan receives energy in busy period and returns it in night period.

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