Water in Armenia to become more expensive, but consumers will pay former price
22.11.2017,
13:17
The Public Services Regulatory Commission of Armenia gave Wednesday its approval to the Veolia Jur water company’s intention to increase prices for water in the country.
YEREVAN, November 22. /ARKA/. The Public Services Regulatory Commission of Armenia gave Wednesday its approval to the Veolia Jur water company’s intention to increase prices for water in the country.
Garegin Baghramyan, chief of the Commission’s price policy management unit, said the retail price for the company’s services will be raised from the present 180 drams to 191.414 drams per one cubic meter (VAT included). Water supply price is 162.702 drams here and the price for sewerage service is 28.712 drams.
“It is stipulated in the company’s license that on the second year of its activity prices can be corrected depending on foreign exchanges rates, inflation, electric power price and basic consumption volume,” he said. “That is why the company proposed to raise its price to 194.3 drams.”
The regulator has monitored things and revealed that the basic consumption indicator fell by 10 million cubic meters this year to 113.1 cubic meters.
“Taking into account losses in the network, the basic consumption projected at 116.2 million cubic meters for 2018 as well as changes in electric power prices and foreign exchange rates, the water price is set at 191.4 drams,” Baghramyan said.
Armen Sergoyan, chief of the Armenian State Water Committee’s water supply and sewerage unit, on his side, said that in compliance with the prime minister’s order some proposals have been worked out to shield ordinary consumers from any shock.
“In recent days we will submit an appropriate proposal to the government – it ism implied that the price will remain unchanged for an ordinary consumer and the difference will come as compensation from cost for the leasing paid by the company to the government budget,” he said.
The wholesale price for water supply and sewerage will be 57.423 drams per one cubic meter. The price for drainage from the Yerevan subway is 11.114.
The new prices come into force on January 1, 2018. The company will submit reports on the revealed illegalities in control over consumption volumes once in every quarter.
Veolia Jur, a subsidiary of France’s Veolia Generale des Eaux, which is a single water supply operator in Armenia, asked the Public Services Regulatory Commission in early August to authorize the price increase – from the present AMD 180 drams ($0.37) per one cubic meter to 194.3 drams ($0.45). ($1 – AMD 483.66). --0----
Garegin Baghramyan, chief of the Commission’s price policy management unit, said the retail price for the company’s services will be raised from the present 180 drams to 191.414 drams per one cubic meter (VAT included). Water supply price is 162.702 drams here and the price for sewerage service is 28.712 drams.
“It is stipulated in the company’s license that on the second year of its activity prices can be corrected depending on foreign exchanges rates, inflation, electric power price and basic consumption volume,” he said. “That is why the company proposed to raise its price to 194.3 drams.”
The regulator has monitored things and revealed that the basic consumption indicator fell by 10 million cubic meters this year to 113.1 cubic meters.
“Taking into account losses in the network, the basic consumption projected at 116.2 million cubic meters for 2018 as well as changes in electric power prices and foreign exchange rates, the water price is set at 191.4 drams,” Baghramyan said.
Armen Sergoyan, chief of the Armenian State Water Committee’s water supply and sewerage unit, on his side, said that in compliance with the prime minister’s order some proposals have been worked out to shield ordinary consumers from any shock.
“In recent days we will submit an appropriate proposal to the government – it ism implied that the price will remain unchanged for an ordinary consumer and the difference will come as compensation from cost for the leasing paid by the company to the government budget,” he said.
The wholesale price for water supply and sewerage will be 57.423 drams per one cubic meter. The price for drainage from the Yerevan subway is 11.114.
The new prices come into force on January 1, 2018. The company will submit reports on the revealed illegalities in control over consumption volumes once in every quarter.
Veolia Jur, a subsidiary of France’s Veolia Generale des Eaux, which is a single water supply operator in Armenia, asked the Public Services Regulatory Commission in early August to authorize the price increase – from the present AMD 180 drams ($0.37) per one cubic meter to 194.3 drams ($0.45). ($1 – AMD 483.66). --0----
