Azerbaijan and Russia to Conclude Electricity Deal in May
Azerbaijan, Baku / corr Trend S.Aliyev / The vice president of the Azerenergy State Energy Company, Marlen Askarov, reported on 30 April that the contract on the restoration of electricity export and import between Azerbaijan and Russia will be adopted at the beginning of May. At present the two sides have reached an agreement, which confirms the cost of electricity import and export, while exact figure is a commercial secret.
The Azerenerji vice president stressed despite change in tariffs, the current price suits both sides. The contract covers the period by the end of the year. In case unwillingness to extend the term, one of sides is committed to inform within a month. "Otherwise, the contract is cancelled automatically," he added.
The electricity supply to Azerbaijan was ceased at the beginning of 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 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.