Losses of Heat Supply Company Reach 100 Million AZN

The state company of supply of thermal energy to the population and other consumers Azeristiliktechizat partially opened its financial statements for 2015, according to which its annual loss from business activities amounted to 11 million 860 thousand manats.

Taking into account 2015, the company's losses reached 96.4 million AZN. The audit (LLC Premium Audit) found that the financial statements are faithful, in accordance with national accounting standards.

The financial report does not disclose information about the economic activity of heat supply to the consumers. Contrary to the requirements of the law, there is no information on the corporate website.

Unpaid debts of consumers to service companies at the beginning of January 2016 reached 13.5 million AZN, increasing by 708,000 AZN in 2015.

Due to the financial difficulties of Azeristiliktechizat, by January 1, 2016 it had tax debts and so forth obligatory payments totaling 1.7 million AZN. In addition, the company has short-term financial commitment to water, electricity and gas supply in the amount of 71.4 million AZN.

Public investment in the development of Azeristiliktechizat reached 195.7 million AZN in 2005.

In 2011-2015 to subsidize the company, 104.8 million AZN was allocated from the state budget. In 2016, the amount of financial assistance of Azeristiliktechizat from the state budget was projected at 18 million AZN.

Tariffs for heat supply in Azerbaijan are regulated by Tariff (Price) Council. For people the cost of heating one square meter is 0.15 AZN, and for other consumers - 0.25 AZN per 1 cubic meter volume of the heated area. Last time the rate was revised in November 2011.   ------08D