Baku: Azerbaijan is set to introduce a new regulatory framework for prices in the heat supply sector starting July 1, 2028. This change will see tariffs being controlled by an authority designated by the relevant executive body, as indicated in the draft law "On Heat Supply." The draft was discussed at the Committee for Natural Resources, Energy and Ecology meeting of the Milli Majlis, the Azerbaijani Parliament.

According to Azeri-Press News Agency, the draft law mandates that prices in the heat supply sector cover all justified expenses of heat supply entities. The regulation aims to promote the development of the sector and boost socio-economic growth. Prices for state-regulated products within the sector will adhere to the law "On Regulated Prices."

For unregulated products, prices will be determined by agreements between the parties involved, except for those products provided by natural monopoly entities. In such cases, the natural monopoly entity will set the prices, adhering to Article 39.6 of the Competition Code. The designated regulator will oversee the monitoring of these prices to ensure compliance.