Wednesday, September 14 2016 16:21
Alexandr Avanesov

ENA CJSC intends to cut losses to 9% within several upcoming years

ENA CJSC intends to cut losses to 9% within several upcoming years

ArmInfo. Electric Networks of Armenia CJSC (ENA) intends to cut losses to 9% within several upcoming years, Director General of the Company Karen Harutyunyan told journalists on September 14.

According to him as of Jan-Aug 2016 losses of ENA totaled around 10%.  "Of course, this figure will slightly grow by the end of the year, as in Nov-Dec the company will inevitably have technological losses.  However, the company will manage to keep the indicator set by the Public Service Regulatory Commission and possibly will even have lower level of losses by the end of the year", the CEO noted recalling that earlier the regulator set normative standard of losses at the level of 11.02%.

Harutyunyan added that by introducing ASKO system expenses on salaries will reduce as there will be no need in electricians.  Operators in the client service centers will replace them. Due to introduction of state- of-the-art technologies the number of the company's employees has been cut to 7100 versus 8 thousand people. At the same time according to social policy of the company those employees, who were dismissed, are transferred to other branches of the company or are provided with the right for adaptation till October 1 in order to find another job. Job cuts will continue.  Currently measures are taken for reducing losses and raising the quality of subscribers' service, which finally will lead to reduction of tariff margin.

The Director stressed that ENA will never be an initiator of raising tariffs. "Our investment program is aimed at exclusion of additional burden for subscribers", Harutyunyan stressed recalling that the program amounted to 100 bln drams to be implemented till 2020 is aimed at cutting tariffs and losses. At the same time neither investments nor the upcoming suspension of Armenian NPP for regularly scheduled maintenance will have any impact on the final tariff for subscribers. "Our investment program has been developed considering these circumstances", the Director noted recalling that the regulator has the exclusive right to confirm new tariffs. "In any case every effort is exerted not to allow growth of tariffs", Harutyunyan noted.  41.4 bln drams out of total investments of 100 bln drams will be directed on repair of electric substations and replacing the main equipment. "The matter concerns unprecedented investments after making which the situation will improve. But even after this the network system will still be far from being ideal. In this light negotiations are being held with international companies-producers of power equipment for attracting property on beneficial terms, which will allow to speed up the process of network modernization", the Director General of the company said.

He also pointed at the fact that the project implementation will help to reduce the terms for subscription of new clients. In Jan-Aug 2014 2300 subscriptions were registered, in 2015-1940 and in 2016 this indicator has already totaled 3100. In accordance with the program significant part of the activities will be held in the center of Yerevan, which will be ensured with additional capacities creating conditions for further development of the capital.

Talking about the debts the CEO informed that debts of Nairit plant (1.4 bln drams) and Vanadzor Khimprom (1.3 bln drams) hold 90% share in overdue debts portfolio.

He also rejected information about possibility of purchasing Karabakh electric networks by the company.  "The company does not intend to purchase electric networks of Nagorno Karabakh. This information does not correspond to reality", Harutyunyan noted.

To recall, on May 4, the Public Services Regulatory Commission (PSRC) approved the investment program of the Electric Networks of Armenia for 2016. The total cost of the program will be 19,895 bln AMD, with 2,496 bln AMD of this amount to be spent on reduction of blackouts, ensuring of safety, replacement of out-of-date equipment. In addition, 301,41 mln AMD will be spent on reduction of average duration of voltage deviations. Some 6,127 mln AMD will be spent on connection of new consumers to the network, 8.649 mln AMD on improvement of the revenue metering system, 1,309 bln AMD on acquisition of machinery and mechanisms, and 1,010 bln AMD on other expenses connected with operation of the electric networks.

To note, this is the first investment project of the company since Tashir Group has purchased it. 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.

POST A COMMENT
Input digits     


News
Russian Deputy Premier: There are no problems in trade between Russia  and ArmeniaRussian Deputy Premier: There are no problems in trade between Russia  and Armenia
Converse Bank began issuing China UnionPay cards - UnionPay Gold and  UnionPay PlatinumConverse Bank began issuing China UnionPay cards - UnionPay Gold and  UnionPay Platinum
Rostelecom Armenia announced the beginning of rebranding and will henceforth operate under the new brand OVIORostelecom Armenia announced the beginning of rebranding and will henceforth operate under the new brand OVIO
Price index for industrial products in Armenia, began to rise amid  high growth in industrial productionPrice index for industrial products in Armenia, began to rise amid  high growth in industrial production
Team Telecom Armenia announces resumption of communication in  Alaverdi Team Telecom Armenia announces resumption of communication in  Alaverdi 
Armenia`s banking system starts active lending to economy and  populationArmenia`s banking system starts active lending to economy and  population
Civil society to supervise procurement contract execution Civil society to supervise procurement contract execution 
Government property management effective last year - minister  Government property management effective last year - minister  
Armenia bans export of scrap metal, metal goods Armenia bans export of scrap metal, metal goods 
AraratBank completes placement of bonds ahead of scheduleAraratBank completes placement of bonds ahead of schedule
Armenia`s NA discusses turnover tax rate rise Armenia`s NA discusses turnover tax rate rise 
Tree Planting Results with My Forest Armenia: The Power of One DramTree Planting Results with My Forest Armenia: The Power of One Dram
World Bank expresses readiness to help Yerevan develop solid waste  management policyWorld Bank expresses readiness to help Yerevan develop solid waste  management policy
Your home is in Armenia – Ameriabank offers mortgage loans for the DiasporaYour home is in Armenia – Ameriabank offers mortgage loans for the Diaspora
Armenia`s electric energy exports down last year; possible evidence  of decline in real economy - expert Armenia`s electric energy exports down last year; possible evidence  of decline in real economy - expert 
Ameriabank`s Trade Finance portfolio enriched with four prestigious awards from EBRD and IFCAmeriabank`s Trade Finance portfolio enriched with four prestigious awards from EBRD and IFC
On Oct 4- 7, Yerevan to host WCIT for second time On Oct 4- 7, Yerevan to host WCIT for second time 
Mirzoyan began his speech at International Conference on Nuclear  Security by expressing condolences to IranMirzoyan began his speech at International Conference on Nuclear  Security by expressing condolences to Iran
R&D is most important element of EAEU countries integration and  R&D is most important element of EAEU countries integration and  "entrance ticket" to competitive world - Russian economist
Armenia, EFSD sign agreement for USD 100 million financial credit Armenia, EFSD sign agreement for USD 100 million financial credit 
Armenia-UAE economic and technical cooperation commission to meet in  Abu Dhabi Armenia-UAE economic and technical cooperation commission to meet in  Abu Dhabi 
Team Solutions presents its ZangeZOR product at 4Future Banking int`l  forumTeam Solutions presents its ZangeZOR product at 4Future Banking int`l  forum
Armenia`s government plans to implement housing programme for  forcibly displaced people in next 10-12 yearsArmenia`s government plans to implement housing programme for  forcibly displaced people in next 10-12 years
Communications Museum re-opened in YerevanCommunications Museum re-opened in Yerevan
Double increase in turnover tax rate will stimulate transition to  common taxation system: Deputy MinisterDouble increase in turnover tax rate will stimulate transition to  common taxation system: Deputy Minister
Rocket Line - now for 60 months: Idram and IDBankRocket Line - now for 60 months: Idram and IDBank
Rising prices for services, going into shadows and closing businesses  - incomplete list of Rising prices for services, going into shadows and closing businesses  - incomplete list of "expectations" from revision of turnover tax  rate from SME Cooperation Association President
Liability for misrepresented information is proposed in ArmeniaLiability for misrepresented information is proposed in Armenia
Government proposes to make changes to car trade system within  Government proposes to make changes to car trade system within  "Trade-in" program
Armswissbank attracts us$ 10 million loan package from EBRD to support competitiveness and green transitionArmswissbank attracts us$ 10 million loan package from EBRD to support competitiveness and green transition
Armenian lawyers unwilling to pay taxes on universal basisArmenian lawyers unwilling to pay taxes on universal basis
EU Commissioner: EU will continue to contribute to economic  development of ArmeniaEU Commissioner: EU will continue to contribute to economic  development of Armenia
PM discusses opportunities for diversifying Armenian economy with WB,  IFC management PM discusses opportunities for diversifying Armenian economy with WB,  IFC management 
EBRD President considers programs implemented by Bank useful for  development of private sector in ArmeniaEBRD President considers programs implemented by Bank useful for  development of private sector in Armenia
EBRD lends up to US$ 10 million to Armeconombank for MSME on-lendingEBRD lends up to US$ 10 million to Armeconombank for MSME on-lending
Armenia benefits greatly from influx of capital and IT specialists -  EBRD chief economistArmenia benefits greatly from influx of capital and IT specialists -  EBRD chief economist
Finance Ministry, French Development Agency sign cooperation  agreement for 2024-2027Finance Ministry, French Development Agency sign cooperation  agreement for 2024-2027
Idram Junior and Koreez signed a memorandum of cooperationIdram Junior and Koreez signed a memorandum of cooperation
During the 33rd EBRD Business Forum, Ardshinbank hosted a panel discussion on economic and trade sanctions.During the 33rd EBRD Business Forum, Ardshinbank hosted a panel discussion on economic and trade sanctions.
Government to allocate additional AMD 3 billion to finance state  order for healthcareGovernment to allocate additional AMD 3 billion to finance state  order for healthcare
EBRD provides $10 million loan to ArmSwissBan to support  competitiveness and green transition of MSMEsEBRD provides $10 million loan to ArmSwissBan to support  competitiveness and green transition of MSMEs
Pankin: Armenia`s suspension of CSTO funding isn`t tragedyPankin: Armenia`s suspension of CSTO funding isn`t tragedy
Armenian government approves program for providing housing to  families from Artsakh; expenses estimated at  AMD 10-12 billion Armenian government approves program for providing housing to  families from Artsakh; expenses estimated at  AMD 10-12 billion 
EBRD Governors re-elect President Odile Renaud-Basso for second termEBRD Governors re-elect President Odile Renaud-Basso for second term
EBRD, USAID to develop transport infrastructure of Armenia,  Azerbaijan, Georgia EBRD, USAID to develop transport infrastructure of Armenia,  Azerbaijan, Georgia 
No specific dates for the entry into force of the law on compulsory  life insurance for tourists visiting Georgia - RA MFANo specific dates for the entry into force of the law on compulsory  life insurance for tourists visiting Georgia - RA MFA
Pashinyan: all those who have the necessary skills, abilities and  desire can make a profit in ArmeniaPashinyan: all those who have the necessary skills, abilities and  desire can make a profit in Armenia
Odile Renaud-Basso: Armenian economy continues to grow despite  numerous negative factorsOdile Renaud-Basso: Armenian economy continues to grow despite  numerous negative factors
Minister of Territorial Administration and Infrastructures refrains  from specifying North-South Road Corridor Investment Program`s  implementation costs and deadlines Minister of Territorial Administration and Infrastructures refrains  from specifying North-South Road Corridor Investment Program`s  implementation costs and deadlines 
EBRD improves Armenia`s GDP growth forecast for 2024 from previous  4.5% to updated 6.2%EBRD improves Armenia`s GDP growth forecast for 2024 from previous  4.5% to updated 6.2%
EBRD promises unprecedented investments in Armenian economyEBRD promises unprecedented investments in Armenian economy
FMO provided Ardshinbank with a guarantee for a credit portfolio of 20 million US dollarsFMO provided Ardshinbank with a guarantee for a credit portfolio of 20 million US dollars
Lending for construction of southern section of Sisian-Kajaran road  will be largest program ever implemented by EBRD in Armenia - Bank  President Lending for construction of southern section of Sisian-Kajaran road  will be largest program ever implemented by EBRD in Armenia - Bank  President 
French Development Agency, Armenian government to expand cooperation  areas and programs` scope French Development Agency, Armenian government to expand cooperation  areas and programs` scope 
The Power of One Dram Sums up the Two-Year Program with Teach for ArmeniaThe Power of One Dram Sums up the Two-Year Program with Teach for Armenia
Noubar Afeyan willing to use his potential to strengthen Armenia Noubar Afeyan willing to use his potential to strengthen Armenia 
Ministry of Economy of Armenia denies that growth in agricultural  exports is due to re-exportsMinistry of Economy of Armenia denies that growth in agricultural  exports is due to re-exports
Finance Minister: Armenia`s GDP generation growth potential increased  from 4-4.5% to 5.5-6%Finance Minister: Armenia`s GDP generation growth potential increased  from 4-4.5% to 5.5-6%
EBRD funds customs and logistics centre in SyunikEBRD funds customs and logistics centre in Syunik
Grigori Zakaryan: “Capital markets have a crucial for economic development.”Grigori Zakaryan: “Capital markets have a crucial for economic development.”
Read more


Exchange rates
29.05.2024
RUB4.32-0.06
USD387.50-0.53
EUR420.32-1.24
GBP493.91-1.02
CAD283.59-0.62
JPY24.64-0.10
CNY53.45-0.12
CHF424.29-0.39