Rise in gas prices not to lead to growth of electricity prices, says tariff council

Ilkin Mejidov, Secretary of the Azerbaijan Tariff Council, said that rise in gas prices will not lead to growth of electricity prices.

On March 14, 2007 the Tariff Council made a decision to fix price of natural gas for the enterprises manufacturing chemical, aluminum and steel products as well as manufacturers of electric energy at 42 AZN per 1000 cub.m., which is lower than the price for other groups of consumers.

Mejidov said that during this period huge capital was invested into electric energy and the generation capacity of the energy system of the country has significantly increased.  The expenses for generation of conditional fuel in Azerbaijan significantly decreased, thanks to construction and launching of power stations equipped with modern technologies and this process continues in line with the state program of development of the fuel-energy complex.

“Impact of gas price on the chemical and aluminum industries has been studied and it is considered advisable to increase price of natural gas for these enterprises up to 80 AZN per 10000 cub.m. This rise in prices will not affect consumers from other groups of population,” said Secretary of the Council.

* At present 1 KWh of power costs 0.06 AZN.—0--