Azerbaijan - Raising Rates : Short-Term Implications of Residential Electricity Tariff Rebalancing

Tariffs are low in Azerbaijan and need
to be raised to finance badly needed network maintenance and
to balance supply and demand. This study presents an
analysis of the short-term impacts of a 50 percent
electricity tariff increase on residential consumers. The
study starts by reviewing electricity tariffs, consumption
levels, and expenditure patterns compared to neighboring
countries. It then considers the welfare effects o f raising
tariffs, with particular attention to the poor and other
vulnerable groups. It concludes with potential links to
agriculture, the environment, and stakeholder analysis.