Establishment Date

The Azerbaijan Energy Regulatory Agency (AERA) was established by Presidential Decree No. 1750, dated December 22, 2017. AERA was created on the basis of the State Energy Control Department and the State Gas Control Department, and it operates as a public legal entity under the Ministry of Energy. The Agency commenced its operations in April 2018 and is structured to include its Board, along with departments, divisions, sectors and branches that are part of the Agency’s Staff.

Activity Areas

AERA is responsible for regulation, including state control, over enterprises engaged in electricity, heat and gas supply, as well as overseeing matters related to consumer affairs.

Legal Basis for Operations

Amendments were made to the following laws to ensure the Agency’s activities:

• Energy Law
• Electricity Law
• Gas Supply Law
• Law on Heat and Power Plants 

To ensure the financial independence of the Agency, the “Rules for Calculation and Payment of Fees to the Energy Regulatory Agency by Enterprises Operating in Electricity, Heat and Gas Supply” were approved on March 5, 2018. Additionally, to establish the control procedures conducted by the Agency, the “Rules for Exercising Control in Electricity and Heat, as well as Gas Supply” were approved in accordance with Presidential Decree No. 204, dated July 16, 2018.

Operational Areas of Branches

The Agency currently operates 11 branches located in Baku, Ganja, Sumgayit, Lankaran, Shirvan, Mingachevir, Sheki, Tovuz, Khachmaz, Kurdamir and Imishli. The operational areas of these branches are defined in clause 1.7 of the Regulations approved by Order No. F-79 of the Ministry of Energy, dated July 9, 2020.

To ensure the Agency’s activities in the liberated territories of the Karabakh region of the Republic of Azerbaijan, the following changes were made by Order No. F-28 of the Ministry of Energy, dated March 30, 2021:

• The Kalbajar district was included in the operational area of the Ganja branch;
• The cities of Shusha and Khankendi, along with the districts of Jabrayil, Gubadli, Zangilan, Lachin, Khojavand and Khojaly were included in the operational area of the Imishli branch.

Furthermore, by Order No. 3-15/3-2-175/2024 of the Ministry of Energy, dated April 8, 2024, the Aghdara district was included in the operational area of the Mingachevir branch.

In consideration of the workload of the branches and the distances between the districts, the following changes were made:

• The Aghdam district was removed from the operational area of the Imishli branch and included in the operational area of the Mingachevir branch.
• The Zardab district was removed from the operational area of the Imishli branch and included in the operational area of the Kurdamir branch.
• The Gabala district was removed from the operational area of the Kurdamir branch and included in the operational area of the Sheki branch.