The Armenian government will subsidize energy price hike through vending "Vorotan Cascade HPP" CJSC, PM Hovik Abrahamyan told the media on Aug 1 in Gyumri.
To note, on June 17 the Public Services Regulatory Commission took a decision to raise the electric power tariffs by 6.93 AMD starting from August 1. As a result, the daytime tariff for the ultimate consumers will rise from the current 41.85 AMD per 1kWh to 48.78 AMD, and the nighttime tariff will grow from 31.85 AMD to 38.78 AMD per 1 kWh (including VAT). ENA CJSC had insisted on 17 AMD rise in the tariffs because of the company's debts. This decision has sparked public protests in the country. The decision even angered the political and public organizations and the opposition forces of Armenia that blame ENA for mismanagement. The Company, in turn, does not guarantee uninterrupted power supply to the country, unless the power rate is increased by 17 AMD. On June 27, Armenian President Serzh Sargsyan said that the Armenian Government would assume the burden of the raised tariffs until the ENA audit was over. He also said that the ENA might be nationalized. For his part, David Harutyunyan, Minister-Head of the Armenian Government Administration, said that the audit at the ENA might last for 3-6 months. ENA's total debt is about 150 bln AMD.
Earlier, on April 22, the Government adopted a decision to sell the Company ContourGlobal. Earlier, ArmInfo reported that on January 29, ContourGlobal and the Government of Armenia announced that they have signed an agreement for ContourGlobal to purchase and modernize the Vorotan Hydro Cascade, a series of three hydroelectric power plants totaling 405 MW on the Vorotan River in southern Armenia, for a purchase price of $180 million USD. ContourGlobal pledges to invest $70 million over the next six years in a refurbishment program to modernize the plants and improve their operational performance, safety, reliability, and efficiency. The Public Services Regulatory Commission has already approved the tariff plan for the consistent exploitation of the Vorotan Cascade for the coming 25 years by Contour Global Hydro Cascade.
ContourGlobal is a New York based international power-generation company with approximately 3,500 MW in operations or under construction in 17 countries and on four continents. ContourGlobal's 1,650 employees manage, own and operate a portfolio of 33 power plants utilizing a wide range of fuel types and technologies including renewable energy production based upon Hydro, wind, solar and biomass, as well as an extensive fleet of conventionally powered thermal power plants. In the wider Eastern Europe area, ContourGlobal currently owns and operates approximately 1100 MW of power generation businesses in Bulgaria, Ukraine, Romania, and Poland.