Negotiations on Further Energy Exchange between Azerbaijan and Russia due in Baku

Oil&Gas Materials 26 April 2007 16:41 (UTC +04:00)

Azerbaijan, Baku / Trend corr S. Aliyev / The vice president of the Azerenergy State Energy Company, Marlen Askarov, reported on 26 April that the representatives of Unified energy systesm of Russia will visity Baku on 27 April to hold talks on the rehabilitation of energy import and export bvetween Russia and Azerbaijan. The talks are scheduled for 28 April.

The work under the new contract is expected to commence after 1 May. At present Russia and Azerbaijan continue energy exchange at a zero level at previously co-ordinated prices. Azerbaijan returns the same volume of electricity as supplied by Russia.

The Azerenerji vice president stessed that the volume of electricity transportation has been maintauined.

The current agreement on electricity delivery was intended for the whole period of 2007. However, tariffs were adopted for the first quarter only. The import of electricity from Russia to Azerbaijan in the first quarter will be on a par with tariffs applied in 2006, namely 3,636 cents per 1 kW/h.

The cost of Azerbaijani electricity for Russia has increased from 1.58 cents to 1.8 cents per 1 kW/h.