Azerbaijan State Water Resources Agency: Differentiating tariffs to protect those vulnerable

Differentiating water tariffs in Azerbaijan will serve to protect the poor, Asad Shirinov, advisor to the chairman of the Azerbaijan State Water Resources Agency, said during the panel discussion "Regulating Natural Monopolies: Competition and Public Interests," held as part of the 2nd National Competition Forum in Baku, Report informs.

He noted that tariffs are a key issue for all utility companies, as the funds collected are used to maintain infrastructure.

"The main task is to maintain the underground infrastructure for transporting water from one point to another, the operation of pumping stations, and the costs of the large team working on this process. Tariffs serve precisely to cover these operational and maintenance costs," he said.

Shirinov added that tariff policy should consider not only operational costs but also major investment costs: "In Baku, the Absheron Peninsula, and in the regions, including Karabakh, major investments are required during the recovery period. These costs are calculated separately, and the Tariff Council evaluates them. We submit our price justifications to the Council, and both our development strategy and sustainable development goals are taken into account."

He emphasized that differentiation should not mean higher prices: "The main goal is to protect the poor and ensure social justice. Proper tariff justification serves to ensure sustainable development, modernization, and efficient use."