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One can say now that the electricity tariffs in Armenia are justified, and there is no need to revise them, Armenian Prime Minister Hovik Abrahamyan said at the government session today when speaking about the report released by Deloitte & Touche firm yesterday, on September 30.

Deloitte & Touche consulting firm presented a report about the first stage of consulting services on tariff regulation in the energy sector. The firm said it considers as justified the decision of Armenia’s Public Services Regulatory Commission (PSRC) about a rise in power tariffs in the country.

“We discussed the issue with the Armenian president and decided that the government will do its best so that the tariff increase will not become an obstacle to vital activities of the population. In addition to the soundness of the tariff rise, the management of Electric Networks of Armenia (ENA) Company is another issue of concern to society. As events of recent months showed, the introduction of new, modern management systems in ENA is urgent in the existing situation,” the premier said.

In his words, Inter RAO Group expressed a wish to sell ENA CJSC, and favorable conditions arose for considerable improvement in the management system. In this connection, according to H. Abrahamyan, the Armenian authorities requested President of Tashir Group Samvel Karapetyan to purchase ENA Company from Inter RAO.  

The premier announced that at its sitting on Thursday, Public Services Regulatory Commission of Armenia gave consent for the sale of 100% of shares of ENA Company.

“At our request, Tashir Group assumed the liabilities to introduce management in line with international standards in the company within the next 5 years and reduce technological and trading losses. In addition, Tashir Group President Samvel Karapatyan expressed a readiness  to provide his personal funds and, on a parity basis with the government of Armenia, compensate the difference after the tariffs rise  for citizens using up to 250 kWh a month and small businesses until August 1, 2016,” the PM said.

H. Abrahamyan said that 604 thousand out of 766,889 consumers use 250 kWh monthly, which makes up 79% of the population.
To remind, new power tariffs took effect in Armenia on August 1, 2015. Prior to that, daytime and night-time electricity tariffs for population were 41.85 drams and 31.85 drams per kWh, respectively. On June 17 Pubic Services Regulatory Commission partly granted the application of Electric Networks of Armenia to raise electricity tariffs. The tariffs rose by 6.93 drams, not 17 drams.