Gazprom Armenia JSC submits request to PSRC: decision on a new gas tariff will become valid on January 1, 2017

ArmInfo. Gazprom Armenia JSC's request  regarding the new gas tariff   has been  submitted to the Public Services Regulatory Commission. As  ArmInfo correspondent was informed at the Commission, the request  will be put under review in the shortest deadlines.

According to Garegin Baghramyan, Head of  PSRC Tariff Policy  Department, the request will be reviewed within a couple of days.  According to appropriate procedures, discussions will be held with  subscribers and consumers' rights protection public entities.  Baghramyan did not state any exact terms of the decision regarding  the request mentioned, but noted that all the works will be  implemented in shortest terms. And, pursuant to the requirements of  regulations, the decision on the new tariff will become valid on  January 1, 2017, because the latest decision on tariff revision came  in power on July 1 of this year .

To remind,  the company's website reported yesterday that at the  moment the tariff for the subscribers consuming less than 10 thsd cu  m per month is 146.7 thsd AMD per 1 thsd cu m of gas. Those consuming  more than 10 thsd cu m per month pay 257.56 conventional units (the  ultimate tariff is calculated by multiplying the conventional units  by the average monthly AMD/USD exchange rate) per 1 thsd cu m. The  company's request implies diversification of subscribers and tariffs: 

1. the subscribers having the right to social allowances and  consuming less than 600 cu m of gas per annum will pay 100 thsd AMD  per 1 thsd cu m;  

2. greenhouse facilities will pay 212 conventional units per 1 thsd  cu m from November 1 till March 31; 

3. processing enterprises will pay 212 conventional units per 1 thsd  cu m;

4. subscribers consuming less than 10 thsd cu m per month will pay  139 thsd AMD per 1 thsd cu m;

5. subscribers consuming more than 10 thsd cu m of gas per month will  pay 242.1 conventional units per 1 thsd cu m. For every consequent   thousand of cu.m. they will be charged USD 212.  Along with that,  there are no bonuses set out for vehicles gas stations, budget funded  entities and TPPs, producing power for domestic consumption. 

To recall, once appointed Prime Minister, Karen Karapetyan stressed  the need to revise the gas and electricity tariffs. He also pointed  out the need to reduce the impact of the tariffs on the vulnerable  social groups, as well as to ensure a galvanizing effect of the  tariffs on business development, specifically in agriculture and  processing industry.       

Gazprom Armenia CJSC is a 100% subsidiary of the Russian Gazprom and  the supplier of natural gas to the domestic market of Armenia. (The  AMD/USD exchange rate is 475.14 AMD/1USD).