Armenian consumers should tighten their belts, producers- increase competition: economist
13.06.2013,
16:50
Armenian consumers should review their expenses, and producers should foster better competition as the natural gas and electricity prices are set to increase in the country, thinks economist Vilen Khachatryan.
YEREVAN, June 13./ARKA/. Armenian consumers should review their expenses, and producers should foster better competition as the natural gas and electricity prices are set to increase in the country, thinks economist Vilen Khachatryan.
Armenia’s Public Services Regulatory Commission set new tariffs for gas and electricity on June 7. They will enter into force on 7 July.
From now on, the consumers who use up to 10,000 cubic meters of gas per month will have to pay 156,000 drams per 1,000 cubic meters (including VAT).
The current gas tariff for those who use up to 10,000 cubic meters is 132,000 drams per 1,000 cubic meters.
The new day-time electricity tariff will be 38 drams per 1kWh (including VAT) instead of the current 30 drams, and night-time tariff –28 drams (including VAT) instead of the current 25 drams.
“In order to ease the effects of an increase in gas and electricity tariffs, inflation, the consumers should review their expenses, clearly classify the groups of income and expenses,” Khachatryan told reporters on Thursday.
He clarified he is not a fan of such measures, but as the matters are now, they could be a temporary solution.
The situation could be also mitigated through better competition between producers.
The consumer basket of Armenia rose by 6.3% in 1Q 2013 from a quarter earlier to 55, 347.3 drams as of March. -0-
