ArmInfo. Russian "Gazprom" will assume full risk related to reduction of gas tariff for Armenia, Head of Public Services Regulatory Commission (PSRC) Robert Nazaryan told journalists. He recalled that there are four sources, at the expense of which gas tariffs can be reduced.
First, this can happen at the expense of reducing tariff on transit gas from Russia to Armenia. "The the agreement expires on January 1, 2017. Currently "Gazprom Export" company and the Georgian side are holding negotiations on reducing tariffs on transit", Nazaryan noted. Secondly, due to benefits provided to business and socially vulnerable families amount of consumed gas will grow and the growing incomes may also serve as a financing source. According to the Head of PSRC the company also noted that it has fulfilled the main part of financial obligations, due to which it will have additional resources and will direct saved funds for this purpose. "The fourth most important source of financing is that Russian Gazprom company promises to assume full risks related to use of the three abovementioned sources of financing. In case these sources are insufficient the company will subsidize the remaining amount", Nazaryan stressed.
It was reported earlier that Gazprom Armenia CJSC submitted a request on a new gas tariff to the PSRC on 1 November 2016. The subscribers having a 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 gas filling stations, budget funded entities and TPPs generating electric 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.