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Azerbaijan to Introduce Fixed Utility Tariff — But Skepticism Grows

Azerbaijan is set to implement a fixed monthly tariff for gas and electricity services that will not exceed 1 manat per household, according to Deputy Energy Minister Orkhan Zeynalov.

The announcement was made during a parliamentary session discussing the draft law “On Gas Supply” and proposed amendments to the “Law on Electricity.”

The government claims the goal is to improve service quality and ensure a fairer distribution of operational costs without increasing current consumption tariffs. Zeynalov emphasized that this structural change is meant to support consumers who regularly pay their utility bills and could even slightly ease their financial burden.

However, the move is already drawing skepticism from both economic analysts and the public. Critics argue that while the tariff may appear symbolic on paper, it sets a precedent for additional fees that could quietly increase over time.

“Citizens are already grappling with inflation and stagnant wages,” one consumer rights advocate noted. “Adding even a small fixed charge raises red flags—especially when trust in public utility providers is already low.”

The Ministry claims the fixed tariff represents less than 2% of total utility expenditures, but watchdog groups say the lack of transparency in how these funds will be allocated could open the door to mismanagement or hidden rate hikes in the future.

Critics are calling for stricter oversight mechanisms and public consultations before the measure is finalized. While the Ministry insists the initiative is about “cost efficiency and fairness,” many remain unconvinced, warning that even a 1-manat fee could become the first step in a broader monetization strategy targeting basic services.

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