Armenia's electricity trading market being liberalized
YEREVAN, April 5. /ARKA/. Speaking today at a discussion on the USAID-funded Market Liberalization and Electricity Trade (MLET) project, Garegin Baghramyan, the chairman of Armenia’s Public Services Regulatory Commission (PSRC), said an electronic electricity trading platform has been in operation since February 1 as part of the market reform, allowing new players to have a role in determining the electricity prices and promoting the harmonization of supply and demand.
"We are working to move forward very slowly so as to minimize the risks for market participants and consumers, as all regulations are new and certain problems may arise," he specified.
The phased liberalization of the electricity market kicked off on February 1, 2022, enabling some power generating plants to no longer sell their electricity at prices set by the Public Services Regulatory Commission (PSRC), but a price formed as a result of supply and demand in the market.
Baghramyan said 2 consumers no longer buy electricity from the Electric Networks of Armenia (ENA) having chosen other suppliers.
According to Baghramyan, electricity supplier licenses were awarded already to 6 companies that can sell electricity on a contractual basis.
USAID Armenia Mission Director John Allelo said if Armenia manages to properly regulate energy resources, it will be able to provide citizens with proper services and attract more investments in this sector.
"We believe the country has taken all the important steps to stimulate competition, ensure system stability and attract investments in the energy sector. Market regulation ensures transparency and accountability in the energy sector and provides energy supplies and infrastructure that will be used by Armenian citizens," he said.
The Market Liberalization and Electricity Trade project focuses on three key areas: development of the electricity market, diversification of supplies and stimulation of interstate electricity trade with Georgia.
The objectives of the program are to support the Armenian government in carrying out electricity market reforms, simplify the regulatory practice by taking into account EU directives, help also create an investor-friendly environment for increasing competitiveness, and developing the electricity industry and regional trade. -0-
