ArmInfo. Works on electric power market liberalization and interrnational trade contribution are initiated in Armenia, the press-office of the Armenian Ministry of Energy Infrastructures and Natural Resources informs.
Following the source, an appropriate works program, aimed at various discussions with stakeholder entities, is already developed in cooperation with the experts of US International Development Agency. After summarizing the project in the first semester of 2017, the document will be submitted for the Government approval. According Areg Galstyan, the Deputy Minister of Energetic Infrastructuires and Narural Resources of Armenia, simultaneous works in respect to modifications and variations to the Energy Law are in progress. 'Exactly with this a transition from a simple model to the market liberalization model will be implemented," Galstyan accentuated, expressing also an opinion , that the energy power framework in Armenia nowadays needs an improvement and a rapid liberalization within the purpose of the trade relation development with neighbor countries.
Recently we have got all the necessary preconditions capsulated here in our country for that, Minister went on. Despite the wholesale market still gives restricted opportunities for competitiveness, as well as the essential difference between the tariffs for generating entities, these factors cannot appear as obstacles to reject the Single Client model. It is necessary to set conditions for involvement of various clients into the market. Establishment of a complete competitive market is quite feasible from the point of joint regional market area. It is well known, that appropriate steps are already made in this field. Upon the implementation of number of project, having a regional importance, it is expected to establish the basis for this process by 2019.
The Public Services Regulating Commission of RA has already approved the Concept on Energy Framework Improvement Tools Implementation. An appropriate mechanism of responsibility both for suppliers and consumers is defined to set forth. Nowadays neither the power suppliers nor the consumers bear any liability for sales and consumption volumes (ordered capacities), which could cause an unlimited variations in tariff regalement. Within the best international practices, the liability of suppliers and large customers for ordered and actually used volumes should become the basic concept.
According to Galstyan, on the way to the market liberalization it is necessary to create an electronic (web) stock and to set new structures at the power energy market. Particularly, it is stipulated to set the market operator entity, which would be the key responsible unit for the energy trade. The tariff policy is also to be improved. "Particularly, the matter is the day/night tarification, their values, and the timetable of implementation. Within the purpose of tariffs diversification, we are intended to differentiate the time by seasons, pic or night items, loading items etc., Deputy Minister added.
To Areg Galstyan's opinion, the market liberalization will immediately impact the tariffs. "We do expect, that the implementation of competitive elements will promote the tariffs decrease. And in such conditions every market player will try to reduce own costs and expenses - just to get to a better position at the market selling own production," Deputy Minister said.