Azerbaijan may adopt law to allow independents build power stations, sell electricity on market

Adoption of the new law "On Energy" will have a positive impact on electricity prices, chairman of Milli Majlis (Parliament) Committee on Natural Resources, Energy and Ecology Sadig Gurbanov told Trend.

He noted that the draft law "On Energy", discussed recently at the Committee's meeting and recommended to the plenary session of the Parliament, is a generalization of the laws of Azerbaijan "On Electricity", "On Gas Supply", "On Use of Renewable Energy Sources in Electricity Generation", "On Efficient Use of Energy Resources and Energy Efficiency".

Gurbanov emphasized that earlier, when the Law "On Electricity" was adopted, the issue of separation of production and sales was discussed.

"Starting from 2028, the sale of electricity will be regulated through a regulator, outside of the state monopoly. At the same time, domestic and foreign investors will be able to work in this sphere (sale of electricity). Electricity transmission and distribution will remain in the state monopoly. On the other hand, electricity production will be allowed. If someone wants, he will be able to build a station, produce electricity and sell it freely on the market. Therefore, we believe that under market competition, i.e. in a competitive environment, electricity prices should go down," Gurbanov said.

He added that the population will have the opportunity to choose an electricity supplier for commercial facilities.

"Thus, an electricity supplier can be chosen in the same way as people choose their cell phone operators. Having found a suitable supplier, citizens will enter into a contract with him and buy electricity at the tariff set by him. This will ensure uninterrupted and high-quality electricity supply to the country's population, as well as free choice of prices. This will be possible after 2028," Gurbanov summarized.

Moreover, the new draft law "On Energy" in accordance with paragraph 11 of Part I of Article 94 of the Constitution of the Republic of Azerbaijan defines the general legal, economic and managerial framework of activities in the field of energy, as well as mechanisms to ensure energy security, the formation of a healthy competitive environment, support sustainable economic development, providing consumers with reliable, quality, affordable and safe energy.