Friday, June 26 2015 18:41

The energy sector of Armenia needs the same model used in the banking system, Bagrat Asatryan, former chairman of the Central Bank of Armenia, said at a press conference in Yerevan.  

Asatryan said that the energy system of the country should apply such measures as bankruptcy, nationalization or replacement of the owner. The banking system uses such methods and insolvency, financial rehabilitation, etc. Such measures should also be applied in the energy sector, whose situation is the result of inefficient management. In 2013, they said that the 17% rise in tariffs would improve the energy situation. But in 2014 it was found out that it was necessary to raise the tariffs by another 10%. The year 2015 has come and they have made a decision to raise the tariffs by 30%. All this demonstrates the inefficient management of the entire energy system. The model of the given structure is aimed at raising the tariffs and it neglects such notions as prime cost, cost saving, etc. It is noteworthy that the tariffs for power generation facilities are expected to rise insignificantly - by 2 AMD per 1 kWh. Asatryan stressed the need to declare bankrupt not the Electric Networks of Armenia, but its owner Inter RAO, but this should not affect the energy complex.

In this light, Asatryan expressed his solidarity with the "No to Plunder!" movement. If the country fails to prevent the rise in the tariffs, in 2016 the tariffs will also grow by some 5-6 AMD per 1 kWh. "Armenia is just a colony for Russia where the latter can do anything it wants. It is necessary to prevent the situation from becoming absurd. As a result, the situation will become either bad or very bad," he said. 

The mass protest action that started on June 19 in Liberty Square is currently going on in Baghramyan Avenue. The demonstrators demand abolishing the decision on the rise in electricity tariffs. The avenue is blocked with barricades and a police cordon. During the daylight hours the protesters in Baghramyan Ave number 1,000, but they increasingly grow in number after the sunset. Despite the vehement public protests, on June 17 the PSRC took a decision to partially satisfy the ENA's application.  At the PSRC meeting a decision was made to raise the tariffs by 6.93 AMD instead of 17 AMD suggested by the ENA. As a result, the daytime tariff for ultimate consumers will rise from 41.85 AMD to 48.78 AMD per 1 kWh, and the nighttime tariff - from 31.85 AMD to 38.78 AMD per 1 kWh (including VAT).