Azerbaijan Introduces New Tariffs for Water Supply and Wastewater Connection Services

Azerbaijan's Tariff Council has approved tariffs for connecting construction sites to water supply and wastewater systems for the first time, addressing a previously unregulated sector with inconsistent charges, the council announced on January 2.

The decision, based on a proposal from the State Water Resources Agency, establishes standardized tariffs with a differentiated approach for residential subscribers and construction projects in urban and regional areas.

Tariffs for Residential Subscribers:

• Water Supply Connection:
  • Baku, Sumgayit, Khirdalan, and Absheron: 200 AZN.
  • Other administrative regions: 170 AZN.
• Wastewater Connection:
  • Baku, Sumgayit, Khirdalan, and Absheron: 345 AZN.
  • Other administrative regions: 290 AZN.

Tariffs for Construction Projects:

For construction sites with daily discharge requirements up to 100 cubic meters:

• Water Supply Connection:
  • 995 AZN or 1,015 AZN, depending on pipe diameter.
• Wastewater Connection:
  • 1,635 AZN.

Implementation Details:

The approved tariffs cover connection works up to 30 meters, funded by the applicant. For distances exceeding 30 meters, the existing network will be expanded by the supplier without additional charges.

Benefits of the Regulation:

The council stated that this regulation aims to:

• Reduce connection costs.
• Ensure stable and high-quality services.
• Enhance financial transparency and improve accounting systems.
• Eliminate inconsistencies, enabling businesses to accurately estimate investment costs.

The new tariffs take effect immediately and are expected to provide a more structured approach to connections, fostering a reliable and investment-friendly environment.