Public services watchdog suggests reducing electricity price by 2.58 drams

ArmInfo. Public Service Regulatory Committee will be discussing the electricity price for the population on June 15. The watchdog suggests reducing both day and night prices by 2.58 drams to 46.20drams (from 48.78drams) and 36.20drams (from 38.78drams) respectively. The decision will come into force on August 1.

The Committee has disseminated a statement wherein it says that it has recalculated the tariffs of the big power generating plants, the service providers in the energy market and the Electric Networks of Armenia CJSC considering the power generation balance for Aug 12016 -Aug 1 2017, import and export of electric power, the change of the gas price, heat power, and other factors.

Earlier, Garegin Baghramyan, Head of the PSRC Tariff Policy Department, told ArmInfo this time the PSRC itself initiated the revision of the current electricity prices with due regard for 3 factors influencing the electricity price formation. "The first factor is the condition of the Electric Networks of Armenia (ENA), including modernization and the need to compensate for the 23.4 bln AMD damage, which should be compensated for within 1 year, according to the decision taken," Baghramyan said. The second factor is the new natural gas tariff that will come into effect on 1 July 2016, which will influence the tariffs of the thermal power plants. The third factor is the scheduled suspension of the Armenian NPP's activities for maintenance and refueling for 120 days instead of 40 days. "To understand the given factor, I should say that the need arises to replace 350 mln kWh electricity generated at the ANPP with more expensive electricity," he says. It is due to the third factor that the electricity tariffs before 1 Aug 2015 cannot be restored, he said.

On May 31, the Public Services Regulatory Commission of Armenia (PSRC) made decision on changes in the gas tariffs. The new terms will come into force on 1 July 2016. The gas tariff for the Armenian consumers will decline by 9.3 AMD per 1 cu m. Tariffs for households consuming up to 10 thsd cu m of gas per month was reduced from 156 to 146.7 AMD per 1 cu m.  The gas tariff for the subscribers consuming over 10 thsd cu m of gas reduced from 276.98 to 257.56 USD in AMD equivalent (at the AMD/USD exchange rate as of the 25th day of the previous month. The tariff includes VAT).