Azerbaijan Energy Regulatory Agency (AERA)

Azerbaijan Energy Regulatory Agency (AERA)


Sectors Regulated:

Electricity, Heating Energy, Gas Supply
  • Heydar Aliyev Avenue 152, “Chinar Plaza” BC
    1029 Baku, Azerbaijan
  • +994 12 598 1653

Regulatory Authority General Information

  • Joined ERRA in 2018
  • Established in 2017


  • Legal basis/ mandate
  • Charter of AERA approved by the Presidential Decree Nr. 1750 of 22.12.2017;
    Rules on implementation of supervision on the fields of electricity and heat energy, as well as gas supply, approved by the Presidential Decree Nr. 204 of 16.07.2018.
  • Responsibilities
  • – Participating in the formation and implementation of a unified public policy in the rel-evant area;
    – Monitoring the compliance with the existing legislation, including consumer protection legislation in the relevant area;
    – Monitoring the efficiency in use of energy resources by the regulated entities in the relevant area, as well as adopting measures in accordance with relevant regulations to prevent (under certain norms) or reduce the negative impact of all energy activities on the environment;
    – Ensuring the development of incentives for improving the investment climate in the relevant area, as well as attracting investments in these areas under consideration of the international experience;
    – Arbitrating disputes among stake-holders (producers, TSOs, DSOs, suppliers, and consumers) in the relevant area;
    – Performing inspections in the relevant area in the cases and in line with the prescrip-tions of the Law of the Republic of Azerbaijan “On Regulation of inspections in the area of entrepreneurship and protection of interests of entrepreneurs”;
    – Making proposals on formation of pricing (tariff) policy in the relevant area;
    – Taking measures for creating a healthy competitive environment in the relevant area and improving the efficiency of energy production.
  • Authorities
  • Independence: Financial, internal decision-making.
  • Supervised by: The President of the Republic and the Ministry of Energy.
  • Reports to:
    – The Presidential office (on fulfilment of Decrees and Orders, issued by the President and/or Vise-President);
    – The Cabinet of Ministers (on activities within the government);
    – The Ministry of Energy (annually, on all activities);
    – The Ombudsman (on human rights protection);
    – The General Prosecutor (concerning a struggle against corruption issues).
  • Appeal process: Two ways for appeal:
    – by the Appeal Council under the Ministry of Energy;
    – in a judicial procedure.

Organisational Structure

  • Organigram
  • Organigram: AERA Azerbaijan (2022)
  • Internal Structure
  • Chairman of the Board and 2 Deputy Chairs.
  • Working Employees
  • • Decision-Making Level: 3
  • • Total Number of Employees: 248
  • Budget
  • Regulatory fees only, collected from the regulated entities, listed in the dedicated by-law, where the main procedures are detailed and issued by the Ministry of Energy upon a Presi-dential approval. The core idea of regulatory fees is dividing the annual regulator cost be-tween regulated entities pro-rata to their turnover.

Annual Report

Information will be available at a later stage.