1. What is a natural monopoly?

A natural monopoly occurs in sectors where, due to the technological characteristics of production, private businesses cannot operate effectively or there is no competition. The state manages these sectors through institutions established to serve public or state interests and keeps their economic activities under strict control.

2.What are the subjects of natural monopoly?

Economic entities involved in the production or sale of goods under natural monopoly conditions are considered natural monopoly subjects. The following are the areas in which these subjects operate:

• Transportation of oil and oil products through main pipelines;
• Natural gas transportation, storage, and distribution via pipelines;
• Electricity and heat energy transmission and distribution;
• Operation of main and local railway lines, road infrastructure, traffic management, and safety services at railway and passenger stations;
• Airport services, operation of airports, runways, and aviation-related services;
• Operation of roads, tunnels, and stations in metro transportation, including traffic management and safety;
• Water port services, port operation, loading activities, and maritime safety services;
• Electricity and postal communication services for routine use, as well as the operation and monitoring of transceiver radio, television stations, and high-frequency devices;
• Operation of major water purification plants, main pipelines, and the water supply network, including pressure and regulation devices;
• Operation of aeration and mechanical cleaning stations, pumping stations, rain and sewage collectors, and sewage lines;
• Operation of reservoirs, canals, collectors, pipelines, and dams related to land reclamation and irrigation;
• Heat supply services.

You can find a complete list of natural monopoly subjects here.

3. Which institution conducts state control over the activities of natural monopoly subjects?

The State Service for Antimonopoly and Consumer Market Control is responsible for state control over the activities of natural monopoly entities. Its functions include:

• Taking measures, as per antimonopoly legislation, to prevent and eliminate actions by natural monopoly subjects that could negatively impact consumer interests or competition;
• Proposing updates to the Ministry of Economy regarding the list of natural monopoly subjects;
• Granting consent for state-controlled actions of natural monopoly subjects;
• Defining and applying appropriate regulatory methods for each natural monopoly subject in accordance with the law;

4. How to apply to the State Service regarding violations of the law in the activities of natural monopoly subjects? 

You can report violations or negative issues related to natural monopoly subjects to the State Service in one of the following ways:

• Electronically via the "Application, complaint, proposal" subsection of the "Application" section on the official website: www.competition.gov.az (https://competition.gov.az/az/page/muraciet/erize-sikayet-teklif);
• Email: Send the necessary documents to the email address: office@competition.gov.az;
• Call Center: Contact the Call Center at 195-1;
• In person: Visit the State Service at the following address: Baku, Sabail District, Uzeyir Hajibeyov Street 84, Government House, Gate 7.