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Deloitte & Touch consulting firm considers as justified the decision of Armenia’s Public Services Regulatory Commission (PSRC) to raise electricity tariffs in Armenia. The firm has released its report about the first stage of consulting services on tariff regulation in the energy sector.

“We analyzed the situation in Armenia when the sole electricity supplier in Armenia has reached the brink of default, which was mainly due to a discrepancy between forecasts of the system operator and the capacity utilization.  The electricity generating companies have already felt the lack of funds in that company, which could have posed a threat to the stability of the whole power supply system in the short term.  Under such conditions the decision of the regulatory body to raise the tariffs in order to stabilize the situation in the sphere and ensure a reliable electricity supply to consumers is a justified decision, in our opinion,” the firm said in the report.

To remind, new power tariffs took effect in Armenia on August 1. Prior to that, daytime and night-time tariffs for households were 41.85 drams and 31.85 drams per kWh, respectively.  On June 17 Public Services Regulatory Commission of Armenia partly granted the application of Electric Networks of Armenia (ENA) Company concerning a rise in power tariff . The tariffs were raised by 6.93 drams, but not by 17 drams.