Thursday, November 19 2015 09:52

 Decline in losses in energy system cannot be considered as basis for reducing the tariffs on electricity, the Minister of Energy and Natural Resources Yervand Zakharyan said at the parliament on November 18.

Armenian National Congress Faction Secretary Aram Manukyan noted that after the owner of Armenian Electric Networks was changed the losses declined by 3 mln KW/h and respectively the profits raised by 120 mln AMD. "According to our calculations the losses throughout the republic declined by 2-3%, which can be a basis for reviewing the tariffs on electricity and reducing the price on electricity by 2-4 AMD.  Besides, the price on gas declined on the border by 13%, which also can reflect on the tariffs on electricity as this is the main component of price formation", he said.

The Minister in turn said that he finds it impossible to reduce the prices as the data provided by Manukyan is not proved and documented. Only in case the losses decline by 12% the issue can be reviewed, he stated.  At the same time Zakahryan stated once again that the rise of tariff is justified. 

To note, the rise of electricity tariffs led to large protests. The new owner of ENA Tashir Foundation on a parity basis with the Armenia's Government will compensate for the rising tariff of electricity at the price of 6.93 AMD for KWh till July 31, 2016, the Government will subsidize the payments of electricity for general public and small and medium businesses, which consume up to 250KWh. Earlier on May 8, the Public Services Regulatory Commission (PSRC) of Armenia received an official application from "Electric Networks of Armenia" (ENA) CJSC for raising the electric power tariff. ENA (subsidiary of Inter RAO) suggests increasing the daytime tariff to 58.93 AMD per 1KW/h versus the current 41.85 AMD, and the nighttime tariff - to 48.93 AMD from the current 31.85 AMD. The PSRC may consider ENA CJSC's application for 80 working days.  In case the Commission satisfies ENA's request, it will become the third rise in the electricity tariffs for the past 2 years. In July 2013 electric power rose in price from 30 to 41.8 AMD, with the nighttime tariff growing from 20 AMD to 31.8 AMD.