New owner of the Electric Networks of Armenia (EN) CJSC will have to undertake additional responsibilities, the Ministry of Energy and Natural Resources of Armenia says in a press release.
According to the source, along with others, the buyer will be required to reduce commercial losses by at least 2%. The new owner pledges to introduce ISO standards within the coming five years, improve the management quality and the energy system in general. The buyer pledges to ensure 100% payments for the supplied electric power and provided services. The previous owner failed to accumulated debts to the generating facilities.
To recall, Tashir Group and Inter RAO signed an agreement of sale and purchase of electric energy assets in Armenia. The deal was approved by the Armenian Government and was closed after the decision of Public Service Regulatory Commission. The parties agreed that Electric Networks of Armenia and Hrazdan Thermal Power Plant will continue to meet all the liabilities. Tashir Group takes full responsibility for the management of CJSC "Electric Networks of Armenia", said the President of Tashir Group, Samvel Karapetyan. Future development plans include an anti-crisis program to optimize the Company's financial activities and control its commercial operations, as well as gradual modernization of its distribution network facilities. On a parity basis with the Government of Armenia, the Company will cover part of the electricity costs of the general public and small businesses for the whole of 2015, compensating the difference between tariffs before and after indexation on 1st August 2015.
On June 17, the Public Services Regulatory Commission took a decision to increase the electricity tariffs in Armenia at the initiative of the ENA. The decision sparked mass public protests. Armenian President Serzh Sargsyan said that the ENA would undergo an international audit and the Government would assume the burden of the tariff growth until the audit was over. Inter RAO started looking for a buyer.