Azerbaijan to Implement Fixed Monthly Tariff for Electricity

Baku: Fixed monthly tariff will be applied for electricity, APA reports. This is reflected in proposed amendments to the “Law on Electric Power” discussed today at a meeting of the Milli Majlis (Azerbaijani Parliament) Committee on Natural Resources, Energy, and Ecology.

According to Azeri-Press News Agency, the draft law aims to introduce a fixed tariff for electricity sector pricing regulation. The fixed tariff is a monthly billing component applied to each consumer to cover fixed costs determined by the regulatory body associated with electricity supply, regardless of consumption levels. This approach is seen in international practices where fixed tariffs are integrated into electricity pricing mechanisms.

The draft specifies that grid-connected consumers will pay a set monthly fee, which is not connected with consumption volume and is applied irrespective of consumer category. This fee will help cover certain costs of the distribution system operator. The draft further defines the fixed tariff as a monthly charge per consumer, intended to recover fixed costs that do not depend on electricity consumption levels.

Additionally, the proposed amendments regulate the rights and obligations of electricity suppliers and consumers in relation to the fixed tariff, addressing issues that may arise from its implementation.