ADSEA: Differentiation should not mean higher prices

16:36 - 3.10.2025


October 3, Fineko/abc.az. We have entered a new stage in development of competitive relations. The issue of regulation of natural monopolies requires special attention. As the State Agency for Water Resources of Azerbaijan (ADSEA), acting as a natural monopoly entity, we prioritize resource efficiency management, loss reduction, and transparency.

ABC.AZ reports that ADSEA Adviser to the Chairman Asad Shirinov made this statement at the II National Competition Forum.

"The tariff issue is the most painful point of all communal structures, natural monopolies. According to the tariff law, establishment of tariffs is associated with reimbursement of operating costs. The operating costs are not related to execution of any project or its prevention in the event of an accident. Speech is about the fact that when transporting water from one point to another, it is necessary to maintain the underground infrastructure in working order, ensure its operation, functioning of pumping stations, as well as cover the costs of a large team involved in this process. Tariffs serve precisely to cover these operational and operational costs. We have studied the experience of our closest neighbors, in particular, Turkey and European countries. The tariff rule they use most often is the differentiated tariff rule. We have this point in our national water strategy for the efficient use of water. In Azerbaijan, the differentiation of water tariffs will be aimed at protecting low-income segments of the population. Differentiation should not mean higher prices. The main goal is to protect the poor and ensure social justice. The correct justification of tariffs serves to ensure sustainable development, modernization and efficient use," Shirinov said.