Azerbaijani Movement for Democracy and Prosperity Demanded Complex Reforms from Government

The decision of the Tariff Council on increase in energy prices is economically unjustifiable and impairs the already difficult social situation.

This is stated by the statement Azerbaijani Movement for Democracy and Prosperity (AMDP) in connection with the decision of the Tariff Council of 28 November to raise prices for natural gas, jet fuel, fuel oil, electricity and medicines.

This decision, as mentioned in the document, has caused anxiety and dissatisfaction among the population.

AMDP believes the decision made by the Tariff Council only at the request of monopolies, without the involvement of experts and consultants, monitoring, surveys, economic feasibility study, or the study of market demand and purchasing power, is wrong.

 The decision of the Tariff Council does not take into account the social situation of the population or its purchasing power. When using so-called "differentiated system of payment" for gas and electricity supplies the principle of social justice has been violated.

 In view of this, the number of people living below the poverty line will grow rapidly, the prices in other markets will increase, many manufacturing plants and facilities will close, headline inflation will rise, the level of fees for municipal services will fall, and the possibility of public access to the achievements of social and economic progress will be reduced.

 As a result, this will increase social discontent.

 AMDP believes that if comprehensive reforms are not started and the new differentiated approach to the regulation of tariffs is not provided, the observed poor management of natural monopolies will lead to further growth of wasteful corruption and misappropriation, and violation of financial discipline.

 To avoid the above noted AMDP demanded that the government should cancel the decision of the Tariff Council; increase accountability and transparency in the activities of natural monopolies and by means of restructuring and privatization reforms to optimize costs and tariffs.

 In addition, AMDP offers to start comprehensive reforms on the basis of a package of proposals "package of basic and urgent measures in the economy" put forward by the Supreme Majlis of Azerbaijan on 31 January of this year.

 If these proposals are not put into practice, AMDP will require the resignation of the government.

AMDP was established in February 2015. It is led by the known economist Gubad Ibadoglu. -06D--

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