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Public Services Regulatory Commission of Armenia (PSRC) sent invitations to five biggest global companies that provide consulting services on power industry management, asking them to submit proposals, Head of PSRC Financial Department Hayk Ghusalmyan said today during discussions organized by Public Council of Armenia.

According to him, invitations were sent on July 27, and the companies are expected to answer within 10 days.
He said the consulting companies were asked to answer two main questions: how justified a rise in Armenian electricity tariffs is, and what dangers to Armenia’s power system may arise in the event that tariffs are not raised. It should be noted that electricity tariffs increase by 6.93 drams in Armenia on August 1.

At the meeting Armenian Deputy Minister of Energy and Natural Resources Areg Galstyan said the audit to be conducted in Electric Networks of Armenia (ENA) Company will include not only an inspection of the company’s financial activity, but also its management, losses, necessity of investments, and personnel policy. The work will be done as part of activities of an interstate commission.
A member of Public Council, Ashot Ashotyan, was skeptical about the planned audit. He said that it will be announced after the audit that all documents are in order, everything is all right, and the power tariff rise is legal.

As was reported, President Serzh Sargsyan said at the June 27 consultation with officials responsible for the economic policy in Armenia 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 the owner 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.