Electricity and gas prices have been raised

Baku/16.10.21/Turan: On October 16, by the decision of the Tariff Council, changes were made to the prices for electricity and gas.

On November 1, new electricity tariffs will be in effect. The tariff for used electricity up to 200 kWh (including 200 kWh) is set at 8 gepik,  from 200 kWh to 300 kWh (including 300 kWh) - 9 qepik, and over 300 kWh - 13 qepik. Prior to that, when electricity consumption was up to 300 kWh, the population paid 7 qepik, and when consumed over 300 kWh, 11 qepik.

For trade and services, the tariff increased from 9 gepik to 11 gepik, and for other industries - from 9 to 10 gepik.

According to the decision, the price of natural gas sold to the population from November 1 to 1200 m3 (including 1200 m3) will be 12 qepik per 1 cubic meter (the previous price was 10 qepik). At the same time, the price for gas using more than 1200 m3 has not changed: for the annual consumer volume from 1201 to 2500 cubic meters (including 2500 cubic meters), the tariff is set at 20 qepik, above 2500 cubic meters - 25 qepik.

At the same time, prices for gas sold for industry and agriculture rose. So, for every 1000 m3 the price has risen from 200 to 220 manats. Prices for gas sold by Azeristiliktejhizat OJSC, mehella boiler and gas filling stations of the LNG type, as well as Azerenerji rose from 130 to 165 manats per 1000 m3.

The ministry noted that at the meeting of the Tariff Council on October 16, issues were discussed such as increasing prices for natural gas in the world market, ensuring investments in this area with the aim of energy sustainability of Azerbaijan, increasing the level of service, eliminating dependence on the state budget, as well as reimbursement costs for the production and supply of consumed natural gas. It was noted that during the discussions, various options for increasing tariffs were assessed.

As a basis, factors such as determining the competitiveness of the Azerbaijani economy as the main strategic goal, ensuring energy security, creating favorable conditions for the dynamic and intensive development of the economy, targeted and efficient use of resources, harmonizing the interests of consumers and producers, the gradual formation of market relations in this area and the elimination of subsidies allocated from the state budget. "The analysis shows that the cost of extracting and delivering natural gas to the consumer exceeds the selling price. This leads to subsidies for the industry by the state and an increase in dependence on the state budget."

The ministry noted  that the last change in tariffs for consumption groups of the population was made in July 2021, and in the course of tariff regulation, tariffs for the lower consumption limit (1200 m3) were not changed. "The resumption of industrial and catering operations from the beginning of 2021, a faster-than-expected recovery in global economic activity has also sharply increased demand for electricity. As a result of the growth price orientation in many countries, tariffs for industries using natural gas and electricity have changed. and also increased utility costs for categories of consumers. "

It was noted that the main energy producer in the country, Azerenerji OJSC, produces 96% of electricity from natural gas. "More than 50% of the raw materials used for electricity generation at thermal power plants in Azerbaijan are natural gas. In this regard, the change in natural gas tariffs causes an increase in electricity prices. There is a need to regulate electricity tariffs to expand infrastructure work in the sector. providing the population and other subscribers with high-quality, uninterrupted energy, as well as to cover additional costs caused by changes in prices for natural gas used for energy production.” –0--