A fixed monthly tariff for electricity consumption will be introduced in Azerbaijan, APA reports.
This amendment was adopted during the third reading of the draft law on “Electric Power” at today’s session of the Milli Majlis (Parliament).
According to the draft, a fixed tariff is a monthly tariff element applied to each consumer in order to cover a portion of fixed costs determined by the regulator, which is independent of the level of electricity consumption.
It was noted that the draft law was prepared with the aim of introducing a fixed tariff in the field of tariff regulation within the electricity sector. In international practice, there are cases where fixed tariffs are applied in regulating electricity prices and tariffs. The main concept of a fixed tariff is that consumers connected to the network pay a set amount monthly as a fixed cost. The fixed tariff is not related to the amount of electricity consumed and is applied regardless of the consumer category. It is used to cover certain costs of the distribution system operator.
The draft law defines the fixed tariff as a monthly tariff element applied to each consumer in order to cover the portion of fixed costs, independent of consumption level, as determined by the regulatory body.
The draft law also regulates the rights and obligations of electricity suppliers and consumers related to the implementation of the fixed tariff, as well as other related matters.
