Azerbaijan's Tariff Council Adjusts Natural Gas Tariffs to Ensure Economic Viability
Azerbaijan's Tariff Council has approved new domestic natural gas tariffs aimed at addressing economic losses, enhancing sector profitability, and attracting investments, the council said on January 2.
The council noted that the previous average domestic tariff was below production costs, necessitating tariff adjustments. However, tariffs for centralized heating systems supplying multi-apartment buildings remain unchanged to support the government’s social policy and promote efficient energy use.
New Tariff Structure for Households:
- Consumption up to 1,200 cubic meters per year: Tariff increased by 0.5 qepik (4.2%) to 12.5 qepik per cubic meter.
- Consumption between 1,200 and 2,500 cubic meters per year: Tariff increased by 2 qepik (10%) to 22 qepik per cubic meter.
- Consumption exceeding 2,500 cubic meters per year: Tariff increased by 5 qepik (20%) to 30 qepik per cubic meter.
The average household tariff increased by 1.3 qepik (8.7%), with the monthly cost impacts varying:
- 48% of households: increase of 32 qepik.
- 39% of households: increase of 1.43 AZN.
- 13% of high-consumption households: increase of 7.46 AZN.
Adjustments for Other Sectors:
- Electricity generation: Tariff increased by 2 qepik (12.1%) to 18.5 qepik per cubic meter.
- Industrial and agricultural sectors: Tariff increased by 2 qepik (9%) to 24 qepik per cubic meter.
These measures aim to balance economic objectives with social priorities, ensuring affordable energy access for most households while encouraging sustainable energy use and investment in the natural gas sector.
The full decision can be accessed on the Tariff Council's official website under the "Council Decisions" section.
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