Regulator turns down application of Electric Networks of Armenia to revise its investment program for 2025
YEREVAN, July 8. /ARKA/. At its meeting on July 8, the Armenian Public Services Regulatory Commission (PSRC) turned down the application of Electric Networks of Armenia (ENA) power distribution company to revise its investment program for 2025.
The company had previously submitted an application to the PSRC for approval of changes to its investment program for 2018-2034, proposing to increase the investments planned for 2025 from the previously approved 47.6 billion drams to 53.98 billion drams ‘to adjust the approved investment volumes and the implementation of new work.’
After reviewing the application, the Commission decided not to approve it for two reasons. First, according to the conclusion of its experts, the implementation of the proposed work will lead to a greater number of planned outages and a significant deterioration in the quality of electricity supply to consumers.
Second, the increase in investment sought by the company would result in the total amount of depreciation and allowable profit recovered through prices exceeding the maximum limit set by the ENA license by more than 2 billion drams.
This could lead to a significant delay in the recovery of investment costs through prices of more than 10 billion drams, which would negatively affect the company's financial condition, according to the PSRC.
The PSRC believes that the level of security and reliability of the power system, as well as its financial stability, could decline.
The Commission’s decision may be challenged in the Administrative Court of Armenia, but an appeal will not affect the suspension or implementation of the decision.
On July 3, the National Assembly of Armenia voted to allow the nationalization of the company, owned by a Russia-based billionaire of Armenian origin Samvel Karapetyan, arrested for 2 months for public calls to seize of power in the country.
The Electric Networks of Armenia is part of the Tashir Group of Companies. It operates medium and low voltage distribution networks in Armenia, serving about 1 million subscribers.
Tashir Group says it has invested approximately $680 million in the modernization of ENA since 2016 and another $150-200 million in the creation of new capacity. -0-
