The main reason for the increase in tariffs is monopoly

Baku/18.10.21/Turan: By the decision of the Tariff Council (on October 16), prices for electricity and gas have been increased. According to the decree, since November 1,  the price of 1 m3 of natural gas sold to the population with a volume of up to 1200 m3 (including 1200 m3) will no longer be 10, but 12 gepiks. The cost of used gas over 1,200 m3 has not changed: 20 kopecks for 1,200 cubic meters to 2,500 cubic meters (including 2,500 cubic meters) with annual consumption and 25 kopecks for more than 2,500 cubic meters.

For the population, when gas consumption is up to 1200 cubic meters (including 1200 cubic meters), the tariff will be 0.12 manat per 1 m3, and not 0.1 manat as it was before.

The price of gas for industry and agriculture also increased. Thus, the price for 1000 m3 increased from 200 to 220 manats. Gas price for Azeristiliktechizat OJSC, neighboring boiler houses and CNG filling stations, as well as for Azerenergy increased from 130 to 165 manats per 1,000 cubic meters.

By another decision of the Tariff Council, prices for electricity were also increased. So, with the level of electricity consumption by the population up to 200 kW/h (including 200 kW/h), the tariff will be 0.08 manat for each kW/h, from 00 to 300 kW/h (including 300 kW/h) - 0.09 manat per 1 kW/h, over 300 kW/h - 0.13 manats per 1 kW/h.

Earlier, when using up to 300 kWh of electricity, the population paid 0.07 manats, while using electricity more than 300 kWh - 0.011 kopecks. The tariffs for trade and services were increased from 0.09 to 0.011 manats, and for other territories - from 9 to 10 kopecks.

Recently, the country has seen an increase in food prices. It is obvious that the increase in gas and electricity prices will lead to a new round of price increases.

Why were gas and electricity tariffs increased? What is the need for this?

Expert Vahid Maharramli answered these and other questions in the "Difficult Question" program.

According to him, the main reason for the rise in tariffs is monopoly. “The rise in prices for electricity and gas is just a consequence of monopoly. Monopoly organizations are not transparent, and we do not know their costs or profits. Of course, they can manipulate it all as they please. They can artificially inflate costs. They are not interested in providing the population with quality services at a minimal price. As a result, a Tariff Council (TC) has been created, with the help of which they can, whenever they want, overstate the cost of the services they provide. However, this also applies to other areas,” the expert says.

Maharramli is convinced that the Tariff Council "arbitrarily, without the permission of the government and the permission of the country's leadership", not only cannot raise the tariff for any product, but even dare not come up with such an initiative."

According to him, the authorities motivate the last price increase by the unprofitable production, its subsidies and the intention to get rid of subsidies in this way. “Recently, they have had a new excuse - they allegedly do all this with the aim of “reconciling the interests of the consumer and the producer,” Maharramli said.

In addition, the expert believes, the increase in electricity prices is presented as insignificant - “by only 1 gepik”. But, in fact, there was a rather serious price increase - by as much as 14%. And even then, when using up to 300 kWh; with a consumption of more than 300 kWh, the price increase will be 28.5%.

As for the increase in tariffs for trade and services, they were increased by 22.2%. Of course, this will lead to an increase in the price of goods and services provided.

Another reason for the increase in tariffs, Maharramli believes, is the increase in costs by enterprises. These expenses are associated with the payment (to any individual, or any structure, official) of additional funds. It is clear that these funds are drawn from the population.--0--