Consumer watchdog says raising water price would trigger other price hikes
14.08.2017,
18:42
If Armenian regulators allow the national water distribution company to raise drinking water price by 8% it is likely to trigger a string of other price hikes, Karen Chilingaryan, the head of the Consumer Advisory Center, told journalists on Monday.
YEREVAN, August 14. /ARKA/. If Armenian regulators allow the national water distribution company to raise drinking water price by 8% it is likely to trigger a string of other price hikes, Karen Chilingaryan, the head of the Consumer Advisory Center, told journalists on Monday.
"Unfortunately, we in Armenia have such cases when the rise in price of one of the services led to a chain reaction in other sectors," Chilingaryan said.
In early August 2017, Veolia Jur, a subsidiary of the French Veolia Generale des Eaux, said it would ask the Public Services Regulatory Commission (PSRC) to allow it to raise water tariffs. The current tariff for water is 180 drams ($0.37) per 1 cubic meter. It is said that the French-run company will ask the regulator to allow it to raise the price to 194.3 drams ($ 0.45).
According to Chilingaryan, Veolia Jur's desire to increase the water tariff is unreasonable, since it has failed not improve the quality of the services provided.
"After being allowed to raise the water price to 180 drams from January 1 this year, it is not clear why Veolia Jur seeks to raise it further by 14 drams, which in my opinion is unacceptable. They are looking for easy ways to make profit instead of working to reduce water losses, which in Yerevan in 2015 were 70-75%," he said, adding that reducing water losses would bring the company more profit than raising the tariff for water.
Starting from 2017 January, Veolia Jur took over the management of five water distribution companies in Armenia - Yerevan Jur, the national Armenian Water and Sewage Company, and the water companies of the Armavir, Shirak and Lori regions from French Saur. Also starting from January, the company instituted a single, countrywide tariff for water supply and wastewater collection and treatment. -0-
"Unfortunately, we in Armenia have such cases when the rise in price of one of the services led to a chain reaction in other sectors," Chilingaryan said.
In early August 2017, Veolia Jur, a subsidiary of the French Veolia Generale des Eaux, said it would ask the Public Services Regulatory Commission (PSRC) to allow it to raise water tariffs. The current tariff for water is 180 drams ($0.37) per 1 cubic meter. It is said that the French-run company will ask the regulator to allow it to raise the price to 194.3 drams ($ 0.45).
According to Chilingaryan, Veolia Jur's desire to increase the water tariff is unreasonable, since it has failed not improve the quality of the services provided.
"After being allowed to raise the water price to 180 drams from January 1 this year, it is not clear why Veolia Jur seeks to raise it further by 14 drams, which in my opinion is unacceptable. They are looking for easy ways to make profit instead of working to reduce water losses, which in Yerevan in 2015 were 70-75%," he said, adding that reducing water losses would bring the company more profit than raising the tariff for water.
Starting from 2017 January, Veolia Jur took over the management of five water distribution companies in Armenia - Yerevan Jur, the national Armenian Water and Sewage Company, and the water companies of the Armavir, Shirak and Lori regions from French Saur. Also starting from January, the company instituted a single, countrywide tariff for water supply and wastewater collection and treatment. -0-
