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Azerbaijan

Electricity Sector Regulation

The Tariff Council provides tariff recommendations, which are reviewed by the Council of Ministers and subject to the final approval of the Office of the President*. The Ministry of Industry and Energy and the Ministry of Economic Development* are represented on the tariff council.

Tariffs

Electricity prices are regulated. Generation and transmission prices are bundled and separate from retail tariffs.

Generation and Transmission Tariff:
 $0.014 per kWh
Retail Tariffs:
  
Residential:
 $0.02 per kWh
Industry:
 $0.03 per kWh
Commercial:
 $0.06 per kWh

Fuel Mix

Natural Gas:
 67.1%
Oil:
 22.5%
Hydroelectric:
 10.3%

Industry Structure

Generation and transmission facilities are bundled together and owned and managed by the Government through Azerenergy. Distribution, including retail services, is privately managed through concession arrangements with Barmek - a Turkish company, and Bayva - a local consortium.

Electricity (2004 data)

Production:
 21.5 TWh
Consumption:
 18.5 TWh
Trade:
 1.0 TWh (export) and 2.4 TWh (import)

More Information

See Chapter IV (Azerbaijan) of the Electricity Sectors in CAREC Member Countries: A Diagnostic Review of Regulatory Approaches and Challenges. [ PDF ]

Visit: www.adb.org/Azerbaijan/


*The ADB website provides links to external websites that are not under its control. ADB is not responsible for the content of these sites.