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Tariff (price) Council of

Azerbaijan Republic

AZ|EN

Next meeting of the Tariff (price) Council held

28.11.2011

Next meeting of the Tariff (price) Council of the Republic of Azerbaijan was held, and tariffs for services of solid waste collection, transportation and disposal, supply of heating and hot water, passenger transport by metro, heating oil, as well as tariffs of services rendered by the State Administration of Radio Frequencies, the Special State Protection Service and the Bureau of the Consumer Goods Examination were considered, and relevant resolutions were adopted. 

Furthermore, the report of the “Azerbaijan Railway” CSC dealing with the impact of the tariffs for inland passenger transport services rendered by the CSC determined on January 31, 2011 to the financial and economic  activity of the institute was heard. It was noted that, modern wagons were put into operation, e-ticket sale started within the framework of the modernization of railway transport. Measures to improve quality of the service go on. 
Tariffs for solid waste collection and transportation services were fixed at monthly 30 copecks per capita for population group, 10 AZN per 1 m3 for other groups, and tariffs for waste disposal were set at 1.2 AZN at the meeting of the Tariff (price) Council. Under the resolution of the Council it was ordered to render services in this sphere under the contract. 
Application of the new tariffs will lead to the expansion of the services in solid waste management sphere, increasing number and volume of containers for collecting and transporting waste, and buying additional special vehicles. 
In addition, tariffs for heating and supply of hot water services rendered by the “Azeristiliktechizat” JSC were determined at the meeting of the Tariff (price) Council. In this respect, hot water tariffs were set at 40 copecks for 1 m3 per capita on population group and 1.5 AZN for 1 m3 on non-population group. Monthly hot water consumption was determined at 2 m3 per capita for the apartmentsthat meters were not installed. 
Besides, by the resolution of the Tariff (price) Council tariffs for heating services were fixed at monthly 15 copecks for 1 m2 residential area on population group and monthly 25 copecks for 1 m3 heated volume, or 30 AZN for  1Gkal energy .  Determiningtariffs for heated volume and heat energy will pave the way for implementing control-dimension works more accurately and stimulating meter installation. 
Moreover, pursuant to the resolution of the Council in the case that meters are not installed account will settled according to the numbers of the days that heat was supplied by informing Tariff (price) Council in advance about the beginning and the end of the season by serving subject, and services will be rendered under the contract. 
Hot water supply services cover approximately 1500 families right now, and only 10% of the revenues of the “Azeristiliktechizat” JSC for the services of hot water supply and heating are shaped on the population group. In this context, determination of the tariffs will contribute to implementing several measures towards increasing durability and quality of the services, notwithstanding determination of the tariffs is not in the level of ensuring profitable activity of the “Azeristiliktechizat” JSC. 
In addition, tariffs for the service of the passenger transport by Baku Metro was considered at the meeting. As known, Perspective Development Plan of Baku Metro has been issued in order to improve passenger transport system and reduce traffic tension in Baku city. It is intended to increase the number of the metro stations and length of the metro lines until 2030. Several measures have been taken in the course of renewing Metro Wagon Park, commissioning new stations, and improving quality of the service in this framework. Herewith, it is decided to fix metro fares at the level of 20 copecks preferring cheap tariff policy corresponding to social goals, although expenditures for passenger transport by metro increased and a passenger’s once fare was several times higher than the cost of the existing tariff. 
New tariffs are considerably lower than the relative tariffs in the several CIS counties and neighboring states. In this regard, passenger transport by metro constitutes 71 copecks in Moscow, 63 copecks in St. Petersburg, 38 copecks in Kazan, 74 copecks in Istanbul, 20 copecks in Kiev and Tbilisi, and etc. 
At the meeting of the Tariff (price)Council tariffs for the services of allocation, registration and operation of frequencies rendered by the State Administration of Radio Frequencies of the Ministry of Communication and Information Technologies were reduced by 12 times for the representatives of diplomatic missions, consulates and international organizations settled in our country. 

What’s more, tariffs for internet services rendered by the Special State Protection Service of Azerbaijan Republic were considered at the meeting. In this regard, current internet tariffs rendered by the Service were reduced by 7.1 times on average as the continuation of the measures in the direction of improving quality of internet services and reducing tariffs in the country. 
Tariffs for current examination services rendered by the Bureau of the Consumer Goods Examination of the State Service for Antimonopoly Policy and Consumer Rights Protection under the Ministry of Economic Development were reduced 5% on average, and tariffs for new services were approved at the meeting of the Tariff (price) Council. 
Furthermore, at the meeting of the Council appeal of the State Oil Company of Azerbaijan Republic dealing with the considering inland wholesale price of heating oilwas discussed taking into account that use of natural gas was more effective than heating oil, and wholesale price of heating oil was set at 140 AZN for a ton including supply costs, value added tax and excise.  
New tariffs will enter into force from December 1, 2011. 

© 2007 Tariff (price) Council of
      Azerbaijan Republic