Armenian regulator leaves drinking water price unchanged for 2014 and 2015

Armenian regulator leaves drinking water price unchanged for 2014 and 2015

YEREVAN, July 9. / ARKA /. Armenian Public Services Regulatory Commission (PSRC) has ruled today to leave unchanged drinking water prices for households in the capital city Yerevan and nearby rural communities for this and next years, which will be paying 170.256 drams for a cubic meter of water, including VAT. 

The current price was set in 2013 June when the PSRC had decreased it by 3.8 drams for residents of the Armenian capital and 32 adjacent villages.

Garegin Baghramyan, head of PSRC’s pricing department, said at today’s PSRC meeting that the final price of drinking water is formed based on several factors:  such as total household supplies, annual inflation rate, euro exchange rate, as well as changes in the electricity price.

"Considering all these factors, the current price was to be increased by 9.77 drams, however, to preserve a steady price rate and in view of planned price cut in 2015 the PSRC decided to keep the current price unchanged,” he said.

He said the price has been raised today slightly (by 2-3 drams) for wholesale customers and the Yerevan Subway. 

Gor Grigoryan, head of French-run Yerevan Jury (Yerevan Water) company managing Yerevan’s water distribution network, said today’s decision was made for a smooth transition to the reduction of the tariff  the next year, spelled out in the concessional contract. 

Under the concessional contract the price was to grow during the first five years and then go down. According to Grigoryan, the current price is 25 drams lower when Yerevan Jur took over the network.

He said this was possible to some extent due to increased sales of water by 1.2 million cubic meters per year as well as reduction in losses.

Yerevan Jur is run by French Generale des Eaux that won an international tender announced by World Bank to take up a long-term management of the Yerevan network in 2006. It pledged to upgrade the obsolete network and ensure 24-hour water supplies to households. The company manages also drinking and waste water removal systems in Ararat, Aragatsotn and Kotayk provinces. It has about 340,000 customers, producing over 370 million cubic meters of drinking water a year and managing 2,120 lm long water pipelines. ($1 – AMD 407.55 drams). -0-

16:34 09.07.2014

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