1. What is a natural monopoly?

A natural monopoly is a sector in which, due to technological characteristics of production, private business entities are unable to operate, or competition does not exist. The state ensures the provision of such services through entities established in the public or state interest and keeps their economic activities under state supervision.

2.Who are natural monopoly entities?

Economic entities engaged in the production or sale of goods under natural monopoly conditions are considered natural monopoly entities. Their fields of activity include:

• Transportation of oil and petroleum products through main pipelines;
• Services for the transportation, storage, and distribution of natural gas through pipelines;
• Transmission and distribution of electricity and heat energy;
• Operation of main and local railway lines, track facilities and structures, traffic management and traffic safety, railway stations, and passenger terminals;
• Airport services, operation of airports, runways, and facilities, as well as aviation and air navigation services for aircraft;
• Operation of roads, tunnels, and stations in metro transport, traffic management, and traffic safety;
• Port services, operation of port facilities, cargo handling, and ensuring maritime safety;
• Public electricity and postal communication services, operation and supervision of radio and television broadcasting stations and high-frequency facilities;
• Operation of main water treatment facilities, trunk pipelines, water supply networks, and related pressure and regulatory facilities;
• Operation of aeration and mechanical treatment plants, pumping stations, main and stormwater collectors, and sewerage networks in wastewater management;
• Operation of reservoirs, canals, collectors, pipelines, and dams in the field of land reclamation and irrigation;
• District heating services.

The complete list of natural monopoly entities can be found here.

3. Which authority supervises the activities of natural monopoly entities?

The State Agency for Antimonopoly and Consumer Market Control under the President of the Republic of Azerbaijan supervises the activities of natural monopoly entities by:

• taking measures, as defined by antimonopoly legislation, to prevent and eliminate actions of natural monopoly entities that may negatively affect consumer interests and competition;
• submitting proposals to the Ministry of Economy regarding the list of natural monopoly entities;
• granting consent for the implementation of actions by natural monopoly entities that are subject to state control;
• determining and applying, in accordance with the law, the regulatory methods applicable to each natural monopoly entity.

4. How should the Agency be contacted regarding violations in the activities of natural monopoly entities?

If you encounter irregularities in the activities of natural monopoly entities, you may apply to the Agency through one of the following methods:

• electronically, via the “Applications, Complaints, Suggestions” subsection in the “Applications” section of the Agency’s official website (www.competition.gov.az) (https://competition.gov.az/az/page/muraciet/erize-sikayet-teklif);
• by sending the necessary documents to the email address office@competition.gov.az;
• in person, by applying directly to the Agency (Address: Government House, 84 Uzeyir Hajibayov Street, 7th entrance, Sabail District, Baku).