State Control in the Relevant Field

The Agency exercises state control over the supply of electricity, heat and gas in the Republic of Azerbaijan. The state control is conducted in accordance with the legislation of the Republic of Azerbaijan and within the scope of authority defined by the Agency’s Charter.

The Agency’s Objectives in Conducting State Control

The objectives of state control in the supply of electricity, heat and gas include improving citizens’ satisfaction, enhancing the quality and accessibility of services provided to consumers, ensuring the reliable, uninterrupted, high-quality and safe supply of electricity, heat and gas to consumers, ensuring that supervised entities comply with relevant regulatory legal acts, preventing violations of the law, and ensuring the timely detection and elimination of violations.

Subjects of State Control

• Electricity producers, transmitters, distributors and consumers (excluding residential subscribers);
• Heat producers, transmitters, distributors and consumers (excluding residential subscribers);
• Entities engaged in the production, processing, storage, transportation, distribution, sale, and liquefaction of gas, including those involved in the installation of gas facilities and the construction, use, testing and certification of pipelines, as well as consumers.

Natural Monopoly Entities in the Relevant Field

A natural monopoly exists in the supply of electricity, heat and gas in the Republic of Azerbaijan.

Azerenergy OJSC
Azerenergy OJSC carries out the generation and transmission of electricity in Azerbaijan through its subordinate entities.

Azerishig OJSC
Azerishig OJSC is engaged in the distribution and sale (supply) of electricity in Azerbaijan.

Gas Export Department
Gas Export Department carries out gas transportation in Azerbaijan, reception of gas produced from the Operating Companies, the Shah Deniz and Azeri-Chirag-Gunashli fields, and sales of SOCAR’s gas volumes in foreign markets.

Azerigas Production Union 
Azerigas Production Union carries out the distribution and sale (supply) of gas to residential and non-residential consumers in Azerbaijan.

Azeristiliktejhizat OJSC
Azeristiliktejhizat OJSC carries out the production, transmission, distribution and sale (supply) of heat in Azerbaijan.

Azneft Production Union
Azneft Production Union is engaged in the storage of natural gas in Azerbaijan.

Authority to Consider Cases of Administrative Offenses

When the Agency identifies indications of administrative violations on issues within its jurisdiction, it conducts proceedings and implements measures in accordance with the relevant provisions of the Code of Administrative Offenses of the Republic of Azerbaijan.

Mandatory Instructions

The Agency issues mandatory instructions to regulated enterprises in connection with the implementation of the tasks set forth in its Charter.

The mandatory instructions issued by the Agency shall be regarded as administrative acts pursuant to the Law of the Republic of Azerbaijan “On Administrative Proceedings.” The mandatory instructions may be issued both in connection with specific violations and as a preventive measure against future violations.