Armenian government to seek financing opportunities to rule out energy tariff increase

Armenian government to seek financing opportunities to rule out energy tariff increase


YEREVAN, June 12. /ARKA/. Armenia’s government will look into opportunities of financing the energy system to rule out tariff increases, the minister of energy and natural resources Yervand Zakharyan said at a government hour in the parliament on Wednesday.

The chairman of Armenia’s Public Services Regulatory Commission Robert Nazaryan said yesterday the energy tariffs will increase by approximately 10% or 3.85 drams per kilowatt-hour. The day before Nazaryan said the electricity price will be increased most probably as from August 1. Earlier, the head of commission pointed out electricity tariffs need to be increased as additional funds of 20 billion drams (without VAT) are needed for ensuring financial viability, reliability and safety of energy supply enterprises.

According to the minister, there is a financing gap of 18 billion drams in energy system, which made the supplying company apply for a tariff increase of 3.8-4.3 drams per kilowatt-hour.

The government is aware the issue may evoke a strong public reaction, but the tariff increases are based on documentation provided by the company, which, according to the commission, is well-grounded, Zakharyan said.

The minister said the premier Hovik Abrahamyan instructed to seek other possibilities to finance the gap, including from outer sources.

Zakharyan assured thorough studies are carried out in all companies to find other solutions within the legislation and the government will submit amendments to the law if required.

The minister also stressed the government will do its best to ensure full control of energy system expenditures and transparency of activities.

As from July 7, 2013, the Public Services Regulatory Commission had raised the energy tariff from 30 drams to 38 drams (including VAT) for daytime and from 25 drams to 28 drams (including VAT) for nighttime. ($1 – 411.67 drams). –0--

10:55 12.06.2014

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