PSRC plans AMD 3.8-4.3 electricity tariff hike for consumers

PSRC plans AMD 3.8-4.3 electricity tariff hike for consumers

PanARMENIAN.Net - Public Services Regulatory Commission plans an AMD 3.8-4.3 increase for electricity tariffs, Armenia Today reported.

According to the Commission’s statement, a study of the forecasts for expenditures and liabilities of electricity supply companies for 2014-2015, revealed that significant change in the factors affecting the companies' economic activity is expected.

Therefore, based on parts 5 and 6 of article 22 of the law on Energy, the Committee started a revision of tariffs for production and use of electricity, with an AMD 3,8-4,3 per kwh hike for consumers expected to secure an additional sum of AMD 20 billion to provide reliable electricity supply system.

Deputy Minister of Energy and Natural Resources said the issue of energy tariffs is occasionally revised, with no decision passed at present.

According to Ara Simonyan, currently, Armenia's energy system faces difficulties caused by a number of unfavorable circumstances including a low-water season. "Debates are in progress, with no specific information as to final revision of tariffs available yet."

On May 16, Armenia’s State Commission for the Protection of Economic Competition (SCPEC) imposed a fine of 20 million drams on Electric Networks of Armenia (ENA) CJSC, based on an application of Yerevan residents.

In particular, residents complained that although the construction of their building was completed 4 years ago, they could not move to their new apartments due to absence of electricity supply.

The building residents applied to ENA, which did not act to solve this problem.

The commission said that ENA is not authorized to use its own discretion to deal with the problem of residents’ electricity supply.

On the commission’s demand, ENA provided an explanation. The company said that an agreement on technological connection work had been signed with the construction company – Millar OJSC, but the work was not completed due to non-fulfillment of financial obligations of 15 million drams.

The residents were offered to pay 138,000 drams each for connection to the network, but the necessary sum was not collected because owners from the Diaspora were absent and also because of the fact that not all apartments in the building were sold.

The residents were also surprised that ENA signed an agreement without making a payment to Millar, including a prepayment for construction of a substation.

The SCPEC has ordered Electric Networks of Armenia to sign an agreement on power supply with the residents within 7 days.

In summer 2013, Public Services Regulatory Commission (PSRC) confirmed an increase of electricity tariff – AMD 38 per 1 kilowatt (up from AMD 30 per kilowatt.) Nighttime tariff amounted to AMD 28 (up from AMD 20 per kilowatt.) The move sparked a wave of protests among Armenia's population, with a signature campaign against the hike initiated. The activists’ application, however, was turned down December 17 by the administrative court.

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