Baku: Current tariffs in Azerbaijan for heat supply are significantly lower than their actual cost, as highlighted by Vagif Tagiyev, Head of the Technical and Production Department of Azerenergy OJSC. Tagiyev made this statement during a public hearing on the new draft law “On Heat Supply,” organized by the Natural Resources, Energy and Ecology Committee of the Milli Majlis (Azerbaijani Parliament).
According to Azeri-Press News Agency, Tagiyev revealed that the Tariff Council has set a tariff of 30 gapiks per square meter for heat supply. However, the wholesale sale of heat energy to “Azeristiliktachizat” OJSC is priced at 3 manats. He noted differences in the norms for various types of housing, such as “Khrushchevkas” compared to new buildings, which result in a cost range of 24-80 gapiks per month for heat energy. Despite this, the current tariff remains at 30 gapiks, which Tagiyev described as 4 to 13 times lower than the real price.
The discussion also touched on the social nature of both electricity and heat energy tariffs in Azerbaijan. MP Nagif Hamzayev raised a question regarding the potential for Azeristiliktachizat to become a profitable organization. He questioned whether the goal should be achieved by increasing tariffs or by implementing a more innovative approach. Tagiyev emphasized the need for the tariff methodology to align with reality and for the real price mechanism to be reflected in the law.