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The hiked electricity tariffs came into effect in Armenia on August 1.

Earlier, Electric Networks of Armenia (ENA) Company filed an application to Public Services Regulatory Commission of Armenia (PSRC) regarding an increase in electricity tariffs, a hike that the parliamentary opposition and civil society considered as unfounded and serving the interests of ENA. Until August 1, 2015 the daytime and night tariffs for population were 41.85 drams and 31.85 drams per KWh, respectively. The ENA proposed raising the tariffs to 58 and 48 drams respectively. But the Commission granted only partly the ENA application on a rise in tariffs. The power tariffs in Armenia have increased by 6.93 drams, not 17 drams.

Mass non-stop demonstrations started in Yerevan on June 19 to protest PSRC’s decision on the rise in power tariffs. Peaceful rallies in downtown Yerevan lasted two weeks, during which protesters blocked a major Bagramyan Avenue on which the parliament building, the presidential residence, and the Constitutional Court are located.

The protest stopped after 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.