Azerbaijan has established the cost of services for connecting to energy and gas distribution networks – 2024-05-05 17:25:39

by times news cr

2024-05-05 17:25:39

Prices for services for connecting to electrical and gas distribution networks have been established.

As Day.Az reports with reference to the secretariat of the Tariff (Price) Council of Azerbaijan, to connect consumers to electric and gas distribution networks, measures are being taken to provide better services, optimize time and costs. The need for an integrated approach to recovering costs associated with connecting to networks, preliminary forecasting of consumer spending and other similar reasons necessitated the introduction of new regulation in this area.

In this regard, at a meeting of the Tariff (Price) Council held on May 3, 2024, the amounts of payments for services for connecting to the electric and gas distribution networks were determined based on proposals from the Ministries of Energy and Economy, the State Oil Company, and Azerishig OJSC.

The following payment amounts have been established for connection to the electrical network:

– 1-phase power supply up to 10 kW – 40 manat/kW;

– 1-phase power supply above 10 kW – 60 manat/kW;

– 3-phase power and low voltage – 293 manat/kW;

– average voltage – 170 manat/kW.

According to the new rules, connection to 1-phase power supply for the “residential subscribers” group can start from 1 kW, depending on the required power. In this case, when the required power is up to 3 kW, the cost is reduced; when it is 4 kW, the cost remains stable, and at 5 kW or more the cost increases. Let us note that expenses for the “population” group, regardless of the required capacity, by this time amounted to 160 manats. For consumers from the “population” group, connections for 1-phase power up to 5 kW are 97.4%, which shows the degree of cost reduction for large groups of consumers.

Also, based on the new payment amounts, at retail, public catering, household and other types of services, payment amounts for low-power connections for a 1-phase power supply scheme (including 20 kW) are reduced by 60-76%.

The amount to be paid for services for connecting to the electrical network is also reduced for 3-phase power supply with the required power from 20 kW to 50 kW. If the required power is between 50 kW and 200 kW, the amount increases.

At the same time, business entities will make payments only according to the tariff, since additional requirements associated with strengthening the network at 3-phase and higher power connections have been removed. This will also reduce overall costs for entrepreneurs by eliminating the costs associated with network reinforcement.

Payment amounts for connection to the gas distribution network are as follows:

– services for the technological and physical connection of household gas installations (with a total gas consumption of 10 m3/h) to a network located 100 meters in a straight line, including the preparation of design and estimate documentation in territories where territorial planning documents have been approved – 271 manats;

– for the service of physically connecting construction projects to the network in territories where territorial planning documents have not been approved – 160 manats.

Before the new regulation, work to connect to the gas distribution network was carried out at a price consistent with the agreement between consumers and contractors. That is, if before regulation different contractors offered different prices for connecting to the network, then after regulation uniform and optimal prices were established.

It should be noted that 99% of connections for the year are made up of household gas installations, of which 96% are from subscribers in the “residential” group. Thus, the process of connecting a large number of consumers to the gas distribution network has been optimized, which will reduce costs in this area.

Other work related to the connection, namely the preparation of design estimates, will be carried out at the expense of the customer on the basis of contracts with the contractor, since the performance of work on the site from the construction site to the point of connection is not regulated.

New rules regarding connection to electricity and gas distribution networks will increase transparency in this area, allow consumers to optimize their time and costs through the use of quality services, and contribute to ensuring sustainable and high-quality service from energy supply companies.

The decision will come into force on June 3, 2024.

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