Tariff Council announces new fees for electricity, gas network connections effective June 3

The Tariff Council will determine new fees for these services starting next month. At its meeting held today, the Tariff (Price) Council set the payment amounts for electricity and gas distribution network connection services, Azernews reports.

This decision was made based on the proposals from the Ministries of Energy and Economy, the State Oil Company, and "Azerishiq" OJSC.

According to the information, the payment amounts for connecting to the electricity network are defined as follows:

40 manats/kW up to 10 kW for 1-phase supply;
60 manats/kW above 10 kW for 1-phase supply;
293 manats/kW for 3-phase supply and low voltage;
170 AZN/kW for medium voltage.

According to the new regulation, the connection to the 1-phase supply for household subscribers can start from 1 kW depending on the required power. When the required power is up to 3 kW, the cost decreases; when it is 4 kW, the cost remains constant; and when it is 5 kW or more, the cost increases. Previously, the cost per household, regardless of required power, was 160 manats. Connections up to 5 kW in the 1-phase supply scheme for residential consumers constitute 97.4%, indicating a reduction in costs for large consumer groups.

Additionally, the new payment amounts reduce the costs for low-power connections (up to 20 kW) under the 1-phase supply scheme in commercial, public catering, household, and other service facilities by 60-76%.

For 3-phase supply, the payment amounts decrease for required power between 20 kW and 50 kW, but increase for power from 50 kW to 200 kW.

Business entities will pay only according to the tariff, as additional requirements for network reinforcement in 3-phase and higher power connections are eliminated, reducing overall costs for entrepreneurs.

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

271 AZN for technical and physical connection services of household gas appliances (with a total gas consumption of 10 m3/hour) to the network located within 100 meters in a straight line, including project estimate document preparation in areas with approved territorial planning documents;
160 manats for the physical connection service of construction objects to the network in areas without approved territorial planning documents.
Before the new regulations, gas distribution network connection works were priced based on agreements between consumers and contractors, resulting in varying prices. The new regulation establishes uniform and optimal prices.

It should be noted that 99% of annual connections are for household gas installations, of which 96% are residential subscribers. Thus, the process of connecting a large number of consumers to the gas distribution network has been optimized, reducing costs in this area.

In areas without approved spatial planning documents, industrial gas facility connections will pay only for the physical connection at regulated tariffs. Other works related to the connection, such as the preparation of project estimate documents from the construction object to the connection point, will be carried out at the customer's expense based on contracts with the executor.

The new regulations will increase transparency, allow consumers to optimize time and costs by accessing quality services, and contribute to the sustainable and quality service of energy supply enterprises, according to the Tariff Council.

The decision will come into force on June 3.