YEREVAN, July 1. / ARKA /. Armenia’s electricity generating and supplying companies will lose AMD 1.5 billion every month if power prices are left unchanged, Armenian Public Services Regulatory Commission Chairman Robert Nazaryan said Tuesday at the commission’s session that resulted in a decision to increase prices for electricity.
The PSRC has also approved today almost a 10 percent rise in electricity prices for households allowing the Electrical Networks of Armenia distributor to charge 41.85 drams per 1 kWh of electricity during daylight hours (from 7:00 to 23:00), up from current 38 drams and 31.5 drams for night hours (from 23:00 to 7:00), up from current 28 drams. The decisions come into force on 1 August 2014.
Nazaryan said that the companies started sustaining losses yet in December 2013, but “since the increase should be justified, we have conducted a long-lasting and careful study”.
He said that such a debt appeared in the country’s energy sector for the first time in the last 11 years.
“There are fears that the increase in electric power prices will drive prices for certain essential goods, but if prices are not increased and an impetus is not given to the system, it may collapse,” Nazaryan said.
He said if other organizations and competent agencies find necessary financial resources, the commission will be ready to reconsider the prices, all the more so they take force in one month. ($1 – AMD 407.28). -0---