BAKU, Azerbaijan, October 20. Alongside the broad application of energy efficiency measures, the regulatory and supervisory activities of the Energy Regulatory and Supervisory Agency (AERA) play a crucial role in shaping market relations in the energy sector, ensuring effective management, transparency, and accountability, Energy Minister Parviz Shahbazov said in an article titled “Azerbaijan Becomes a Regional Energy Hub,” published on October 20 in the Azerbaijan newspaper, Trend reports.
Shahbazov noted that during the reporting period, the agency prepared proposals on electricity transmission, wholesale, and retail prices to support the implementation of market reforms.
According to him, the rules for determining regulated electricity prices in the power sector have been developed to ensure effective market organization. The draft law on energy regulation has been revised, and regulations for the installation, technical operation, and safety of electrical facilities have been approved and implemented. Work continues on developing technical operation and safety standards for heating facilities. Monitoring of gas facilities, pipelines, chimneys, and ventilation systems has been conducted to identify violations and ensure compliance, with findings formalized according to legislation.
"Nearly 2,000 control measures have been implemented in state institutions to oversee the efficiency and safety of electricity and heat use and the reliable operation of gas facilities, with all detected violations addressed," the article reads.
Shahbazov emphasized that improving the legislative framework and continuing reforms in the energy sector have led to key legislative steps, including the adoption of the new “Heating Supply” and “Gas Supply” laws. The heating law mandates centralized systems in new buildings, promoting energy savings, reducing emissions, and improving service quality. It also clarifies the rights and responsibilities of heating production, distribution, and sales entities, fostering transparent and efficient public-private relations.
The new gas supply law regulates the transportation, distribution, storage, wholesale and retail sales, and import of gas, ensuring financial transparency, cost-based pricing, prevention of cross-subsidization, and strengthened fiscal discipline for gas supply companies under the State Oil Company. These reforms enhance Azerbaijan’s energy security and make the sector more modern and competitive.
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