Expert fears increase in electric power prices in Armenia to drive commodity prices 3-5 percent up

Expert fears increase in electric power prices in Armenia to drive commodity prices 3-5 percent up

YEREVAN, July 4. / ARKA /. The recent increase in electric power prices in Armenia will drive commodity prices up, Armen Poghosyan, chairman of the Armenian Consumers’ Association, said Friday answering ARKA News Agency’s question.  

“It is still difficult to make precise forecasts, but it is obvious that prices will go up, since electric energy is used for producing almost all types of goods,” he said. 

On Tuesday, the Public Service Regulatory Commission approved 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 decision takes force on 1 August 2014.

Poghosyan said that maybe this latest electricity price hike in itself is not so dangerous for local producers and consumers, but the recent years’ power price hikes have stricken hard at many businesses rendering them unprofitable amid the dwindling number of customers who are leaving the country.   

In his words, prices for goods leapt 9% over one year and prices for services mounted 10%.  
Poghosyan also voiced concern over the lack of any independent view on what is going on. He said not a single independent expert has expressed own opinion about the matter or showed own calculations to confirm or refute the commission’s arguments. ($1 – AMD 407.99).–0-

19:32 04.07.2014

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