State Regulator: Electricity tariffs to rise in Armenia

State Regulator: Electricity tariffs to rise in Armenia

Photolure

Robert Nazaryan

The head of a state regulating body has confirmed that the price of electricity is set to go up in Armenia.


Robert Nazaryan, the chairman of the Public Services Regulatory Commission (PSRC), spoke to reporters on Tuesday. The official added, however, that it is still not known how much exactly this price hike will be.

The Electricity Networks of Armenia (ENA), the company that runs distribution networks, requested a 40-percent rise in a formal application submitted to the PSRC in May. If approved, the rise will be third within the past two years and, as economists say, will affect the prices of other goods in Armenia.

Thousands of people took to the streets in Yerevan and other towns of Armenia on May 27 to protest the unpopular move. Activists of a pressure group, in particular, have accused the Russian-owned company of mismanagement, bringing the example of its renting luxury cars and apartments in Yerevan for its workers, etc. They threatened to stage more protests if the state regulators finally decide to grant the application of the ENA.

Nazaryan said on Tuesday that they have reviewed the ENA’s application and will inform the public about their position most likely in a week.

“There is one thing that I can clearly say: the ENA bid did not reflect any element of luxury in the price,” Nazaryan said, adding that several components make an electricity price increase apparent.

Meanwhile, following discussions in parliament with the participation of Nazaryan as well as ENA CEO Yevgeny Bibin, Vahram Baghdasaryan, leader of the ruling Republican Party of Armenia’s parliamentary faction, stressed that the process will leave no vagueness.

“I think everything will be very clear and simple. There’ll be no vagueness. They and the Commission will each present their own reasons,” Baghdasaryan said. “[ENA CEO] Bibin was told everything that was necessary.”