Armenian PM: Increased electricity tariff not to be subsidized at expense of state budget funds
The increased electricity tariffs in Armenia will be subsidized at the expense of extra-budgetary resources until an audit is conducted at Electric Networks of Armenia (ENA) Company, Armenian Prime Minister Hovik Abrahamyan said during a briefing today, following the forum Economic Agenda 2015.
“Subsidies will not be provided from the state budget. Additional information will be released about what funds will be used for subsidizing”, he noted.
Asked why the shortcomings found during last year’s audit of ENA were not eliminated, the PM said that it is first of all the company owner who should have been consistent in that matter.
Commenting on the possible nationalization of ENA, the head of government said: “It is too early to speak about it, we need to wait for the audit results. We will have our say only after receiving the audit results”.
In his words, the audit company will be announced in July.
As for the ongoing rallies on Bagramyan Avenue in downtown Yerevan against a hike in electricity tariffs, the PM said that the solution proposed by Armenian President Serzh Sargsyan on June 27 at a consultation with officials responsible for Armenia’s economic policy is a correct solution and meets protesters’ demands.
“The presented decision is correct. As regards society’s distrust in ENA and Public Services Regulatory Commission, we will try to dispel it later. The public will be informed of the results of work to be done by the consulting firm and auditors,” H. Abrahamyan said.
As was reported, President Serzh Sargsyan said at the June 27 consultation with officials responsible for the economic policy that cancelling the decision on power tariff rise is “very dangerous”. For this reason the government will cover the tariff rise until the conclusion (of an audit of Electric Networks – editor), he said. “Of course, we will not pull out the ongoing programs or social expenditures, but will identify other resources among the means allotted for the further strengthening of (energy) security. Certainly, our security issues are far from being solved, to say the least, and yet that environment of suspicion and distrust that we have now, I think is another security issue and a very important one. And that must be solved. And if that conclusion [of the audit] confirms the price increase is well-based, from that moment on the consumers will begin paying the new tariff without having any suspicions. Should the conclusion confirm the increase had been groundless, the government would take measures to get refunds from the ENA on the amount surcharged, as well as bring to account those officials that failed on their duties»,” the president said noting that under such conditions the work that the government started a few months ago to change management of ENA will become a certainty, and the option of returning the company to the state and transferring it for competitive management is not ruled out.