ENA: In 2016, the profit of Electric Networks of Armenia JSC formed AMD 23,2 bln

ArmInfo.In 2016, the profit of  Electric Networks of Armenia JSC formed  AMD 23,2 bln . This was  stated by Karen Haroutyunyan, the general Executive of the Company,  while answering the question of ArmInfo reporter at a  press  conference in Yerevan. 

According to Karapetyan, the reports of the company, prepared by  worldwide known KPMG audit company,  are developed based on  international accountant standards. At that, the profit has several  components, one of which is so called super profit, which is being  generated not by the Company.  Purchasing the cheaper electic   power  at the market, the company gets a surplus  profit, which is subject  to be decreased  upon the next tariff margin. Hence, AMD 1,5 bln from  that AMD 23,2 bln is subject  to return. Besides , due to the assets   savings company got additional AMD 1,5 bln. Hence, the company could  not have any surplus profit." We earned as much as we could," Karen  Karapetyan stated. 

In his turn, Karen Darbinyan, Electric Networks of Armenia JSC Board  of Directors chairman stressed that the company intends to implement  investments in agriculture network modernization $200mln by 2020,  which would allow to reduce the losses to the level low than 9%. But  not bad result of 9.7% is already registered. It was achieved by  optimization of the network. According to the company's Board data,  in 2020 they will manage to reach loss level to 8.2-8.5%, which would  result daily 1.5bln AMD economizing, which would totally be directed  to loan portfolio reimbursement. At the same time commercial losses  reached 0, and technical ones, which demand big investments, total  9.7%. Billing level for used energy power totals 99.2%. According to  Karen Darbinyan, industry share increase in total extent of energy  use is based on reduction of shade economy level.

On 30 Sept 2015, Tashir Group headed by Russian businessman of  Armenian origin Samvel Karapetyan and Inter RAO signed an agreement  of purchase and sale of electric power assets of the Russian energy  holding in Armenia - ENA CJSC and Hrazdan TPP. The reason of the sale  was the public discontent about the ungrounded growth in electricity  prices by approximately 16.7% (6.93 AMD per 1 kWh). The Public  Services Regulatory Commission's (PSRC) decision to raise the tariff  sparked protests and the Armenian authorities agreed to audit both  the expediency of PSRC's decision to raise the tariff and the  activities of the Electric Networks. In addition, the authorities and  Tashir Group took a decision to subsidize on a parity basis the  raised tariff for the households and SMEs until the audit is  completed. Since August 1, 2015, the daytime tariff for households  (from 7 am till 11 pm) has been 48.78 AMD per 1kWh, while the  nighttime tariff has been 38.78 AMD per 1 kWh.

To note, ENA CJSC distributes and sells electricity. The total length   of the networks is 36 thsd km. The company serves nearly 985,000   consumers. ENA CJSC has an exclusive license to transmit and   distribute electric power in Armenia at the guaranteed tariffs   calculated with due regard for the company's expenses and the   administered rate of return on investment.