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WEEKLY ECONOMIC REVIEW

Analysis Materials 20 July 2005 16:31 (UTC +04:00)

Last week was remembered with hot discussions in the media on the activities of the energy distributing companies Barmek-Azerbaijan and Bayva-Energy.

They stated with the statement by Etibar Pirverdiyev, the President of Azerenerji JSC, who urged the necessity of reconsidering the investment agreements between the government and the companies.

The key reason for the disagreement was the �wrong management if energy systems, and low payments to Azerenerji energy delivery.

In reply Barmek held a new conference last week and stated the disagreement with Pirverdiyev.

In his turn on Tuesday Farhad Aliyev, the Minister for Economic Development, commented on the disagreements, calling Azerenerji to show understanding in the regard to existing problems.

After the Cabinet of Ministers released statement for media, refuting the reports in presentation of a document to the Azerbaijani President of the cancellation of the contacts eth energy network operators

There rally problems in the activities of the energy distribution companies. These are frequent incidents (in particular in winter period), cessation of energy supply to some parts of the capita, as well as the regions, sometimes the low quality of the electricity.

However, there is a deficit in the capacity. The improvement of the energy supply is linked with the amount of investments needed for the installation of meters, rehabilitation of the energy transmission system, full and qualitative energy supply to consumers.

Summarizing the situation one can come to ground that an only right way for the resolution of the problem existing between the energy distributing companies and Azerenerji could be a mutual understanding and mutual tolerance. Radical steps would not in favor of any of the parts, as well as the national energy system.

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