The Agency makes proposals on the formation of price (tariff) policy in the regulated area.

Based on this activity, the Agency:

• Analyzes received proposals on prices (tariffs) for electricity and heat energy, as well as gas;
• Submits proposals on state regulation of those prices (tariffs) accordingly.

According to the Resolution of the Cabinet of Ministers of the Republic of Azerbaijan No. 178 dated September 28, 2005, the following prices are regulated in the field of electricity and heat energy, as well as gas:

• Electricity;
• Transportation, wholesale and retail sale of natural gas by pipelines;
• Thermal energy;
• Heating system;
• Services for connection of residential buildings, including apartments to electricity, gas and water lines.

According to the legislation on regulated prices, prices for goods and services listed above are set by the Tariff (Price) Council, a collegial executive body of the Republic of Azerbaijan, and proposals may be submitted by the Agency.
In order to submit proposals on tariffs (regulated prices) in the regulated area, the Agency developed a set of documents (directives and regulations) of the European Union called the "Third Energy Package" and a methodology of a recommendatory nature, discussed with the relevant authorities.