Transparency Coalition stands for reduction of gas and electricity tariffs

Baku/21.10.21/Turan: The Coalition of Public Associations "Increasing Transparency in Extractive Industries" of Azerbaijan called on the government to cancel these decisions of the Tariff Council of October 16 and to revise the prices for energy carriers, including gas and electricity in the domestic market, and thus further improve the social situation of the population.

As is known, electricity and natural gas prices have increased again in Azerbaijan these days. Thus, according to the decision of the Tariff (Price) Council, the price for each cubic meter of natural gas up to 1,200 cubic meters per year will be calculated for the population in the amount of 12 qapiks. Until now, this price was 10 qapiks which is up 20%.

According to the decision of the Tariff Council on Saturday, the volume of natural gas for the population after 1200 cubic meters will remain at the level of the tariff adopted in July.

That is, if the population exceeds the norm of 1200 cubic meters per year, it will pay from 20 qapiks per cubic meter to 2,500 cubic meters, and if this limit is exceeded, then 25 qapiks for each subsequent cubic meter.

As for electricity, the differentiation of tariffs for the population has changed. So far, there are two payment limits for electricity - 7 qapiks per month up to 300 kWh and 11 qapiks for consumption over 300 kWh. The new decision of the Tariff Council defines three categories: 8 qapiks /kWh for subscribers up to 200 kWh, 200 kWh - 9 qapiks /kWh from 300 kWh, up to 13 qapiks /kWh for subscribers over 300 kWh.

The Coalition's POSITION PAPER, adopted on October 20, emphasizes that the recent decisions of the Tariff Council on regulating prices for natural gas and electricity at the domestic market do not meet interests of the population, and assesses these decisions as a step to worsen the socio-economic situation, especially in terms of the current pandemic.

"First of all, we note that a similar situation with the rise in prices for state-regulated goods and services is that the state cannot convince consumers in the need for these solutions. The main reason for this is that government decisions are not made collectively, but on the basis of instructions, and there is no dialogue with society. For this reason, public discussions are not held before decisions that directly affect the interests of the country's population, and the interests of people are not taken into account," the document says.

The coalition called on the Government to return to the International Extractive Industry Transparency Initiative (EITI) and achieve transparency at all levels and activities in the extractive industry, including disclosure of information on contracts, licensing conditions, trade in raw materials, tenders and procurement.

Azerbaijan officially withdrew from the EITI in March 2017. The formal reason was disagreement with the Council's decision to suspend Azerbaijan's activities in the Initiative's board. In October 2016, the EITI Board put forward demands to Azerbaijan for the adoption of laws to change state policy aimed at relaxing the requirements for the registration of civil society organizations, as well as allowing them to receive funding from abroad.-0—