TODAY.AZ / Business

Azerbaijan, Russia to continue discussing electricity imports

24 April 2007 [07:51] - TODAY.AZ
A delegation from Russia's RAO UES (Unified Energy Systems) will visit Azerbaijan on April 27 to continue the price-haggling discussion.

Marlen Asgarov, the Vice-President of Azerenergy, Azerbaijan's State Electricity Company, told APA-Economics that the delegation is to appear "with a new package of proposals" while they have not sent any yet.

Prior to this, the Moscow negotiations on electricity imports and exports between Azerenergy and RAO EES yielded no result for the parties. It was agreed to hold another meeting in Baku.

Azerbaijan and Russia broke off mutual electricity sales relations since April 1 amid a dispute over the prices while they are currently exchanging electricity under a barter contract and the party returns the same amount of energy within 24 hours without any payment.

Azerbaijan said it would resume the electricity imports if Russia's RAO UES agrees to sell at a favorable price.

As per the agreement inked on January 15, Azerbaijan was importing 200 to 250 megawatts of electricity (some 1bn kilowatt a year) in peak consumption hours at a price of 3.636 cents per kilowatt, close to 3.6 cents in 2006. The agreement was for the full year with the possibility of extension while the prices were for the first quarter.

Azerbaijan also raised the price of electricity being sent to Russia at nights to 1.8 cents from 1.58 per kilowatt.

Azerbaijan imported 0.7bn kilowatts of Russian electricity in 2006. The parties failed to agree on a fixed price after haggling long.

Azerbaijan also refused to buy high-priced gas from Russia in January.

URL: http://www.today.az/news/business/39872.html

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