The efficient supply of potable water is one of the main preconditions for quality of life for every family and for the operation of businesses. In Azerbaijan, water is supplied both to household and commercial consumers by Azersu, the sole water supplier in Azerbaijan. The company has over one million customers, of which about 30,000 are businesses.

With support from USAID, Transparency Azerbaijan (TA) has monitored improvements in the supply of potable water under the Azerbaijan Partnership for Transparency project since 2011. TA has found several positive changes since it conducted an analysis in 2011 of the regulations and institutional mechanisms in this sector and submitted recommendations to Azersu and the National Anti-corruption Commission.

The recommendations from 2011 identified several major areas for improvement, including developing a specific framework regulating relations between the supplier and consumers, in order to supplement the general provision contained in the Law on Potable Water Supply of 1999. The report also recommended that household water consumers be required to have a contract with Azersu, and that Azersu implement the use of the preexisting (but largely unused) standard contract format. Also, the report recommended that Azersu stop collecting fees in cash by onsite controllers and stop issuing hand-written receipts, as both created unnecessary opportunities for corruption. Moreover, because less than 40% of households had water meters, the report recommended the expanded installation of meters. The report further recommended that controllers be equipped with devices to read existing meters through the computerized central system and to produce detailed bills for water consumption.

Over the last three years, Azersu has begun implementing these recommendations which have led to measurable improvements in potable water supply and regulations. The installation of meters is now in process and their number has already increased by 20% compared to 2011. About 20% of controllers are now equipped with devices that produce detailed bills when the meter is read and onsite cash payments have been reduced considerably. Also, the government has adopted the Rules for Water Use. The Rules clearly indicate some of the rights of the consumer and the obligations of the supplier. For example, in the past consumers were entirely responsible for the integrity of the meter, but the Rules now set forth a division of responsibility between consumers and the supplier depending on the location of the meter (inside or outside of the consumer’s property). Also, the Rules clearly state that the installation, replacement and repair of meters are the responsibility of the supplier. Moreover, unlike similar documents regulating supply of other utilities, these Rules clearly state that disputable issues shall be interpreted in favor of consumers.

USAID continues to support TA to monitor transparency and accountability in the provision of utility services, including water supply, and design further recommendations in close cooperation with relevant government structures.