Both gas and light have risen in price. "Will continue"

Based on requests from state institutions, the Tariff (Price) Council has raised prices in several sectors during a recent meeting.

In a statement released on January 2, the council announced for the first time that tariffs have been approved for connecting to water supply and wastewater systems. Until now, these services were provided without state regulation, resulting in varying costs. The approved tariffs include:

• Water supply connections:

  • Baku, Sumgayit, Khirdalan, and Absheron region: 200 AZN.
  • Other administrative areas: 170 AZN.

• Wastewater connections:

  • Baku, Sumgayit, Khirdalan, and Absheron region: 345 AZN.
  • Other administrative areas: 290 AZN.

Additionally, the cost of heating services for households has increased.

The council claims that the current cost of providing heating by Azeristiliktechizat OJSC is 1.10 AZN per square meter. However, since 2011, the payment for these services has been set at 0.15 AZN per square meter.

The new tariffs include:

• For households without meters: 0.30 AZN per square meter.
• For households with meters: 14.6 AZN per 1 Gcal (approximately 40-50 square meters).

The tariff for natural gas supplied to centralized heating systems in multi-apartment buildings remains unchanged.

Price Increases for Natural Gas and Electricity

For household consumption, the new gas tariffs are as follows:

• Up to 1,200 cubic meters per year: Increased by 0.5 qepik, now 12.5 qepik per cubic meter.
• 1,200–2,500 cubic meters per year: Increased by 2 qepik, now 22 qepik per cubic meter.
• Above 2,500 cubic meters per year: Increased by 5 qepik, now 30 qepik per cubic meter.

Electricity prices have also risen:

• Up to 200 kWh: Increased by 0.4 qepik, now 8.4 qepik per kWh.
• 200–300 kWh: Increased by 1 qepik, now 10 qepik per kWh.
• Above 300 kWh: Increased by 2 qepik, now 15 qepik per kWh.

The new tariffs will take effect on January 2, 2025.

The council justifies the gas price increases by stating that the current domestic average gas tariffs are below production costs. The adjustments aim to address economic losses, ensure profitability, and attract investments into the sector.

The council also emphasized that the increase in gas prices impacts electricity production costs, necessitating new electricity tariffs to ensure service sustainability.

Experts Express Concerns

Economist Zohrab Ismayil told Radio Azadliq that besides gas supply, the quality of other utility services remains problematic. He noted frequent power outages, unstable voltage, and insufficient heating services across many areas. He described the situation as a reflection of financial crises in institutions like Azerigas, Azeristiliktechizat, and Azerishiq, adding that the price hikes are largely an attempt to address these crises and fill budget gaps.

Economist Rashad Hasanov shared with Turan that the price hikes reflect inflationary pressures that increase service costs, inevitably passing these costs to end consumers. He highlighted the need for greater transparency and optimization in financial and operational management within these sectors before considering further tariff increases.

Hasanov also noted that higher prices could encourage responsible consumption and reduce excessive use, positively impacting the environment. However, he cautioned that specific considerations should be made for low-income families and those reliant on electricity in regions without access to natural gas.

The recent increases are expected to impact higher-income households more significantly, but attention must also be given to vulnerable populations in remote areas, particularly during harsh winters.