Armenian regulator begins revision of electricity prices
07.11.2016,
17:06
Armenia's Public Services Regulatory Commission (PSRC) has started a revision of electricity prices for consumers, PSRC chief Robert Nazaryan said today.
YEREVAN, November 7. /ARKA/. Armenia's Public Services Regulatory Commission (PSRC) has started a revision of electricity prices for consumers, PSRC chief Robert Nazaryan said today. He said according to the law "On the PSRC" the regulator has the right to revise the tariffs in order to ensure the financial stability of the system.
"If the cost of natural gas for thermal power plants is to be reduced by $15 per one thousand cubic meters, it is therefore necessary to revise also the cost of electricity tariff. In these conditions, we are tending to reduce the tariffs for the consumers, but is difficult to say at what extend," - Nazaryan said. According to him, the final decision depends on a set of factors, including the beginning of the new fiscal year, when electricity production volume for the following year is determined.
"We have already notified in written form all energy generating companies that we have begun the revision process and invited them to present their positions and investment, so that we can revise the tariff," - Nazaryan said. He said the final decision will be made before the end of the year and the new prices will become effective from next February 1.
As for natural gas price, Nazaryan said the Russian Gazprom - the owner of Armenia’s national gas distributing company Gazprom Armenia- will assume all the risks that may stem from the cutting the gas tariff for Armenia.
According to him, the regulator plans to revise the tariff for gas before the end of November, but it will come into force only in January 2017 and will be valid for one year.
On August 1, the previous Armenian government stopped subsidizing the domestic retail prices of electricity, one year after utility regulators raised those prices and triggered dramatic street protests in Yerevan.
On May 31, cut electricity prices by 2.58 drams setting the daytime rate (from 7.00 am to 11 pm) for households at 46.2 drams. The nighttime rate is 36.2 drams.
The price for gas for households consuming up to 10,000 cubic meters a month is 146.5 drams per one cubic meter. The price for enterprises consuming over 10,000 cubic meters was cut from $276.98 (in dram equivalent) to $257.56 (including VAT). ($ 1 - 475.23 drams). -0-
"If the cost of natural gas for thermal power plants is to be reduced by $15 per one thousand cubic meters, it is therefore necessary to revise also the cost of electricity tariff. In these conditions, we are tending to reduce the tariffs for the consumers, but is difficult to say at what extend," - Nazaryan said. According to him, the final decision depends on a set of factors, including the beginning of the new fiscal year, when electricity production volume for the following year is determined.
"We have already notified in written form all energy generating companies that we have begun the revision process and invited them to present their positions and investment, so that we can revise the tariff," - Nazaryan said. He said the final decision will be made before the end of the year and the new prices will become effective from next February 1.
As for natural gas price, Nazaryan said the Russian Gazprom - the owner of Armenia’s national gas distributing company Gazprom Armenia- will assume all the risks that may stem from the cutting the gas tariff for Armenia.
According to him, the regulator plans to revise the tariff for gas before the end of November, but it will come into force only in January 2017 and will be valid for one year.
On August 1, the previous Armenian government stopped subsidizing the domestic retail prices of electricity, one year after utility regulators raised those prices and triggered dramatic street protests in Yerevan.
On May 31, cut electricity prices by 2.58 drams setting the daytime rate (from 7.00 am to 11 pm) for households at 46.2 drams. The nighttime rate is 36.2 drams.
The price for gas for households consuming up to 10,000 cubic meters a month is 146.5 drams per one cubic meter. The price for enterprises consuming over 10,000 cubic meters was cut from $276.98 (in dram equivalent) to $257.56 (including VAT). ($ 1 - 475.23 drams). -0-
