Tashir group of companies is not going to buy Electric Networks of Armenia

YEREVAN, May 12. / ARKA /. The Tashir group of companies is not currently considering the purchase of the  Electric Networks of Armenia (ENA), a member of the Armenian parliament, Karen Karapetyan, the brother of Samvel Karapetyan, the owner of Russia-based Tashir group of companies, said today in a statement.

In the statement, Karen Karapetyan brushed aside allegations that the latest request of the national power distributor to allow it to dramatically raise the price of electricity was prompted by the imminent deal.

He said the increase in electricity price now is not desirable, especially given the dire socio-economic situation of the population.

According to him, ENA is a private company that has accumulated a debt of $250 million because of a string of reasons, such as weak management, poor tariff policy, unjustifiably high losses and a wrong energy balance.

He noted that the potential buyer of ENA will take a serious risk given the plight of the company, accumulated huge debts, and the imminent halt of the Armenian nuclear power plant for six months in 2017 for preparation of its rehabilitation, which will significantly affect the balance of power. 

With this in mind, Karapetyan said the government itself should be interested in attracting a buyer that will be able to take the company out of the crisis. 

On May 7 Armenia's Russian-owned national power distribution company -  Electric Networks of Armenia - asked the Public Services Regulatory Commission (PSRC)  to allow it to raise the price of electricity a third time in less than two years by 17.08 drams per one KWh. 

The company asks for a permission to increase the daily rate (from 7 am to 11 pm) from the current 41.85 drams per 1 kWh to 58.93 drams and the night rate (from 11 pm to 7:00 am) from the current 31.85 drams per 1 kWh to 48.93 drams. 

The tariff went up 27 percent in July 2013 because of the increased cost of Russian natural gas, which generates more than one-third of Armenia’s electricity. The PSRC raised it by another 10 percent in July 2014, citing the need to end the company’s mounting losses. -0-