Minister denies media reports on sale of Electrical Networks of Armenia

YEREVAN, March 30. / ARKA /. Armenia’s minister of international economic integration and reform Vache Gabrielyan has brushed off today media allegations claiming that the national electricity transmission company Electrical Networks of Armenia (ENA) was sold to a Russia-based ethnic Armenian billionaire Samvel Karapetyan.

Last week a local daily ‘Haykakan Zhamanak" (Armenian Times), cited its well-informed sources saying the facility was sold to Tashir Group, owned by Samvel Karapetyan.

It claimed that the ENA was ordered by its Russian owner RAO UES to cease all transaction, however, these reports were declined by the company.

Gabrielyan said the ENA may be sold to a new owner because it is a private company. He neither denied the possibility of other procedures, but said there was no change in the company's status currently.

According to the ministry of energy and natural resources, the Electric Networks of Armenia has $220 million in outstanding debts to local banks. The Russian-owned company blames the current situation on higher than planned losses (by 2 percent) that translate into 5 billion drams annually. Besides, it has to buy more expensive electricity from thermal power plants because hydropower plants do not operate at their full capacity.

In 2013 Armenia's Public Services Regulatory Commission (PSRC) allowed the company to raise the energy price by 27 percent, 'because of the increased cost of Russian natural gas', which is used to generates more than one-third of Armenia’s electricity. The price went up by another 10 percent in July 2014, 'to help the company to end mounting financial losses,' according to PSRC. ($1 – 471.21 drams). --0--