Armenian PSRC leaves natural gas prices unchanged for households
19.06.2020,
17:34
Armenia's Public Services Regulatory Commission (PSRC) has approved today new prices for natural gas consumers.
YEREVAN, July 19. /ARKA/. Armenia's Public Services Regulatory Commission (PSRC) has approved today new prices for natural gas consumers.
Ashot Ulikhanyan, a PSRC official in charge of tariff policy department, said natural gas prices for Armenian consumers had been last changed in July 2016, but after that the price of imported gas rose by $15 to $165 per one thousand cubic meter.
He said the national gas distributing company Gazprom Armenia had applied for a tariff revision, however, the PSRC found some of its expenses unreasonable.
In particular, PSRC suggested that the revenue from the gas distribution network be cut from 234.68 billion drams to 221 billion drams and losses be reduced from 6.69% to 5.07%. Also, it suggested that the company cut its salary fund from 18.9 billion drams to 14.7 billion drams and the staff from 6,954 employees, to 5,383.
The PSRC also proposed reducing material costs from 11.4 billion drams to 7 billion drams, including investment programs in the gas transmission network. As a result, the PSRC wants the average weighted price of a one thousand cubic meter of natural gas be set at $266.71, down from $283.14, sought by Gazprom Armenia.
Ulikhanyan said the prices for households will not change staying at 139 thousand drams per one thousand cubic meters (for consumers who use up to 10 thousand cubic meters of gas per year) and 100,000 drams for socially disadvantaged groups.
The price of gas for agricultural companies will increase from the current $212 per one thousand cubic meters to $224, down from $283.14 sought by Gazprom Armenia. At the same time, for consumers who use more than 10 thousand cubic meters of gas per month, the tariff will increase to $255.92 per from the current $242.1, down from $283.14 per one thousand sought by Gazprom Armenia.
New prices enter into force on July 19, 2020, with the exception of the thermal power plants. The new prices will become effective for them from August 1, 2020. -0-
Ashot Ulikhanyan, a PSRC official in charge of tariff policy department, said natural gas prices for Armenian consumers had been last changed in July 2016, but after that the price of imported gas rose by $15 to $165 per one thousand cubic meter.
He said the national gas distributing company Gazprom Armenia had applied for a tariff revision, however, the PSRC found some of its expenses unreasonable.
In particular, PSRC suggested that the revenue from the gas distribution network be cut from 234.68 billion drams to 221 billion drams and losses be reduced from 6.69% to 5.07%. Also, it suggested that the company cut its salary fund from 18.9 billion drams to 14.7 billion drams and the staff from 6,954 employees, to 5,383.
The PSRC also proposed reducing material costs from 11.4 billion drams to 7 billion drams, including investment programs in the gas transmission network. As a result, the PSRC wants the average weighted price of a one thousand cubic meter of natural gas be set at $266.71, down from $283.14, sought by Gazprom Armenia.
Ulikhanyan said the prices for households will not change staying at 139 thousand drams per one thousand cubic meters (for consumers who use up to 10 thousand cubic meters of gas per year) and 100,000 drams for socially disadvantaged groups.
The price of gas for agricultural companies will increase from the current $212 per one thousand cubic meters to $224, down from $283.14 sought by Gazprom Armenia. At the same time, for consumers who use more than 10 thousand cubic meters of gas per month, the tariff will increase to $255.92 per from the current $242.1, down from $283.14 per one thousand sought by Gazprom Armenia.
New prices enter into force on July 19, 2020, with the exception of the thermal power plants. The new prices will become effective for them from August 1, 2020. -0-
