Armenian government has made a decision to ease the consequences of the electricity price hike, unaware of how much it will cost the country. There are no references from the Economy Ministry about an increase in budget expenses, which is unprecedented, the Union of Informed Citizens said in a statement provided to ArmInfo.
According to the source, by the government's decision dating back to August 31, it is foreseen to subsidize the 6.93-drams per kWh electricity price rise for the population and partial compensation for the small and medium-sized companies consuming up to 500kWh electricity. In other words, the companies spending up to 20,000 drams on electricity will receive 1732 drams subsidies monthly. Meanwhile, experts say this will cost taxpayers 1.082 bln drams monthly.
"The most ridiculous thing is that the government is making a decision without having any reference on the cost of it," the Union says in the statement. Under that decision there will be no subsidies for big companies, factories, electro transport, water supply companies. Consequently, there will be unavoidable price hikes in the consumer market, which will increase expenses of an average-sized family by 50.000 drams annually.
"Besides, the electricity generated in Armenia is the most expensive in the CIS. This means that local producers will lose their competitiveness in the territory of the EEU, because, production of the same goods, for instance, in Russia will cost half as much as in Armenia," the Union says.