Baku, July 8 — Azerbaijan’s parliament has passed a controversial new law introducing a fixed monthly utility fee for gas consumers, set to take effect from July 1, 2028. While officials hail the measure as a step toward a “transparent and fair” system, critics argue that the lack of public consultation and poor communication risk undermining trust in the reform.
The law, passed in its third reading, mandates a monthly charge of up to 1 manat (approx. $0.60) per subscriber — on top of existing consumption-based tariffs.
“This is not a price hike, it’s a structural reform,” claimed Deputy Energy Minister Orkhan Zeynally, asserting that less than 2% of total system costs will be covered through this flat fee.
📉 Critics: “Reform without clarity is a recipe for confusion”
While the government insists the change won’t increase total costs, consumer rights advocates and energy experts warn that poor public communication and lack of transparency could turn the reform into a public relations failure.
Energy analyst Ilham Shaban pointed to a familiar pattern:
“We’ve seen this before — a decision taken behind closed doors, later explained through vague statements,” he said.
“It creates an information vacuum that gets filled with speculation, fear, and eventually anger.”
Shaban emphasized that the true success of the reform hinges not on its design but on public perception, which has been largely neglected so far.
⚠️ Public trust at risk
Public response to similar initiatives in the past — such as the highly criticized 1-manat “technical fee” introduced by a mobile operator — suggests that even modest charges can spark outrage if not properly explained.
“Right now, the state is asking citizens to trust a promise that this fee won’t increase over time — without offering any concrete legal guarantees or oversight mechanisms,” said Gulshan Asgarova, a civil society activist.
“In a country where electricity and gas outages are still common in some regions, people are being asked to pay more for services they don’t always reliably receive.”
🧾 Low-usage households may pay more per unit
Another criticism comes from economists and social workers, who argue that low-income or energy-conscious users — such as pensioners or rural families — could be disproportionately affected.
“If a household uses very little gas, a fixed monthly fee means they end up paying more per cubic meter than larger consumers,” said economist Taleh Ismayilov.
“It’s effectively a regressive charge unless offset with social subsidies, which are not yet part of the plan.”
🌍 Global practice ≠ local context
While the government points to Western Europe as a model — where such fixed fees are standard — critics argue that comparisons fall short due to vast differences in service quality, income levels, and consumer protections.
“You can’t transplant a German utility model into Azerbaijan without also importing the accountability and service guarantees that come with it,” Asgarova added.
🗣️ What’s next?
Despite being officially approved, the law still faces an uphill battle in terms of public acceptance. Experts warn that failure to clearly explain the rationale, benefits, and long-term impact could lead to a repeat of past backlashes.
“This should be a case study in how not to launch a reform,” said Shaban.
“You don’t build trust through legislation alone — you earn it through engagement and transparency.”
🧮 Bottom line:
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What’s changing: Fixed 1-manat monthly utility fee starting July 2028
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Official justification: Predictable infrastructure funding, fairer cost distribution
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Key concern: Poor communication, regressive impact, erosion of public trust
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Public message: Reform might be logical — but it needs to be earned, not imposed
