What does regulation mean?

Regulation of energy issues means regulation of relations between producers, transmitters, distributors, sellers (suppliers) and consumers in the field of electric and thermal energy, as well as gas supply in the Republic of Azerbaijan.

Issues regulated by the Agency

The agency regulates relations between producers, transmitters, distributors, suppliers and consumers in the field of electric and thermal energy, as well as gas supply in Azerbaijan, analyzes the activities of enterprises, makes proposals on restructuring measures, develops incentives for investment, engineering and communication systems and services, organizes control over compliance with quality requirements.

AERA's duties in the regulated industry

Regulates relations between producers, transmitters, distributors, suppliers and consumers in the field of electricity and heat energy (regulated industry), as well as gas supply;

Participates in policy-making iand implementation process of a unified state policy in the regulated industry (electricity and heat energy, gas supply);

Ensures the development of incentives to increase the investment climate in the regulated industry, as well as to attract investment in these areas, taking into account international experience;

Resolves disputes between producers, suppliers, transmitters, distributors and consumers in the regulated industry;

Makes proposals on the formation of price (tariff) policy in the regulated industry;

Takes measures to create a healthy competitive environment in the regulated industry and increase the efficiency of energy production. 

Activity purpose  

The purpose of the Agency's activities is to ensure the efficient operation, sustainable development and transparency of the regulated industry to develop this area by improving control mechanisms, to adapt services to the requirements of a market economy, as well as to ensure access to these services for entrepreneurs.

Areas of responsibility: Natural monopolists

Azerbaijan has a natural monopoly on electricity and heat, as well as gas supply.

"Azerenergy" OJSC

 “Azerenergy” OJSC, a natural monopoly enterprise that is responsible for production and transmitssion of electricity in Azerbaijan.

"Azerishiq" OJSC

"Azerishiq" OJSC, a natural monopoly enterprise that distributes and supplies (sales) eletricity to household and commercial consumers in Azerbaijan.

"Gas-Export-Department"

"Gas-Export-Department" receives gas from the "Operating Companies", "Shah Deniz" and "Azeri-Chirag-Guneshli" fields, and ensures the sale of SOCAR's gas in foreign markets.

"Azerigas" PU

As a part of  SOCAR, "Azerigas" PU distributes and suplies (sales) gas to household and commercial consumers in Azerbaijan.

"Azeristiliktechizat" OJSC

"Azeristiliktechizat" OJSC provides heat to household and commercial consumers, public, and industrial buildings and structures in Azerbaijan, including Baku and surrounding areas.