Wednesday, March 15 2017 14:36
Naira Badalian

Gas  supplies tariff possible reduction in Armenia - empty talks or real prospective? PSRC comments

Gas  supplies tariff possible reduction in Armenia - empty talks or real prospective? PSRC comments

ArmInfo. The actual tariff for Russian natural gas supplied to Armenia is not a subject for review, Garegin  Baghramyan, the PSRC tariff policy department head stated to ArmInfo  reporter.

According to Baghramyan, there is no option possible  for tariff decrease  at the present stage - at least because there is no legal basis existing  for that. " Based on the results of gas tariff latest review, new terms became valid from January 1 this year, and from the point of law, the process of another tariff review could be initiated not earlier than  after 6 months. But even after the expiration of 6 month term, the expert sees no resources to decrease it.

The PSRC representative reminded that Gazprom Armenia JSC, while submitting its claim for tariff review on November 1, 2016, considered the possible decrease of transit  cost for gas supplies, and the expectations related to the consumption volumes increase at the cost of  reduction of tariffs for natural gas sold to Armenia.  The claim considered also the funding expected from Gazprom Armenia JSC  sole shareholder - Gazprom (Russia), which should be allocated within the purpose  to increase the gas consumption and to settle this high level at a sustainable mark in Armenia.  Considering all these factors, and first the prospective of  costs for  natural gas transit  through the territory of Georgia, as well as while studying the structure of  gas and expenditures related to the system maintenance and operation, it becomes clear that  company's margin forms about USD 50. In this context also there is no option to decrease  gas tariff.

Garegin Baghramyan calls those who  forces the circulation of whispers regarding possible reduction of gas tariffs, to get closer first with the order of such tariffs capsulation - at least at the website of PSRC.  In such case. All these empty talks would become more realistic. "In such case opponents could come out with objections and voice their disagreement with certain item of expenditure, or could offer their vision of tariff capsulation and to justify their position  in a stronger way," Garegin Baghramyan said.  According to Baghramyan, peculating  the figures, certain people forget the fact that the last claim of Gazprom JSC assumed also the diversification of subscribers and  tariffs per 6 groups. In this case, calculating the margin between the exported and sales price of the natural gas, it is necessary to proceed from the average value, and not the tariff for any certain group of consumers." The average price forms USD 255, about USD 40-42 of which is the share of VAT, and USD 150 is  the export  price of gas exported. Hence, the price of gas for company makes about  USD 200. Such components are not subject for review, it is impossible. We could talk only about system  operation, maintenance and amortization expenditures reduction," Baghramyan mentioned. But even these reductions are unable to lead to desired price reductions, and it is impossible to imagine something over norm in the USD 50 margin.  According to Gazprom JSC expectations in respect to gas consumption volumes increase, it could be said that the weather also supported the plans of the company. According to PSRC, in December 2016 gas consumption formed  97,3  mln cubic meters (583,316 subscribers).  And in December 2015 the consumption stood at the mark of 92 mln cubic meters (589,389 subscribers). In January 2017 gas consumption formed 128,5 mln cubic meters by 587 thousand subscribers, and in January 2016, having more subscribers (593 thousand) the consumption volume was less - 111,9 mln cubic meters. The power energy consumption volumes show growth as well: in December 2016 the consumption formed 226,4 mln kWh,  versus 209.3 in December 2016. The consumption for January only formed 239,22 mln kWh versus 209,3 mln kWh in January 2016.

To remind, new gas tariffs are implemented in Armenia   from January 1, 2017, after the Gazprom-Armenia suggested to decrease basic tariffs for 5,2-6% 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.


News
Armenian government to allocate about 357.5 million drams to complete  15 subvention programsArmenian government to allocate about 357.5 million drams to complete  15 subvention programs
 Armenian accountants and auditors can grow professionally with help  of British Association of Chartered Certified Accountants Armenian accountants and auditors can grow professionally with help  of British Association of Chartered Certified Accountants
Armenian government approves the ratification of the Agreement of the  CIS countries in the fight against IT crimesArmenian government approves the ratification of the Agreement of the  CIS countries in the fight against IT crimes
Government of Armenia ratified the agreement between the governments  of the Republic of Armenia and the Republic of Malta on the avoidance  of double taxationGovernment of Armenia ratified the agreement between the governments  of the Republic of Armenia and the Republic of Malta on the avoidance  of double taxation
The leadership of SRC of Armenia at a meeting with the head of the  FCS of the Russian Federation noted the special importance of  enhancing contactsThe leadership of SRC of Armenia at a meeting with the head of the  FCS of the Russian Federation noted the special importance of  enhancing contacts
American company Wabtec shows interest in the Armenian market American company Wabtec shows interest in the Armenian market 
Deputy Prime Minister on a possible increase in gas prices: Gazprom  insists that the amount of profit stipulated in the 2013 agreement  does not satisfy themDeputy Prime Minister on a possible increase in gas prices: Gazprom  insists that the amount of profit stipulated in the 2013 agreement  does not satisfy them
Drip irrigation. 5 questions and answers with Converse BankDrip irrigation. 5 questions and answers with Converse Bank
World Bank`s updated Groundswell report warns: Climate change could  force 216 million people to migrate within their own countries by  2050World Bank`s updated Groundswell report warns: Climate change could  force 216 million people to migrate within their own countries by  2050
Expert: The unprecedented rise in gas prices in Europe and EAEU  membership open new opportunities for ArmeniaExpert: The unprecedented rise in gas prices in Europe and EAEU  membership open new opportunities for Armenia
Central Bank of Armenia: In Jan-July 2021, the net inflow of  transfers from individuals increased by 78.5% per annumCentral Bank of Armenia: In Jan-July 2021, the net inflow of  transfers from individuals increased by 78.5% per annum
Efforts are underway to enhance seismic safety at Armenian NPPEfforts are underway to enhance seismic safety at Armenian NPP
EEC Forecast: In 2022, the negative foreign trade balance in the EAEU  will be reduced from $ 5.8 billion to $ 2.5 billion EEC Forecast: In 2022, the negative foreign trade balance in the EAEU  will be reduced from $ 5.8 billion to $ 2.5 billion 
Central Bank of Armenia: Consistent tightening of monetary conditions  has a sufficient impact on the regulation of progressive consumer  demand and on curbing of  inflationCentral Bank of Armenia: Consistent tightening of monetary conditions  has a sufficient impact on the regulation of progressive consumer  demand and on curbing of  inflation
Central Bank upgrades Armenia`s economic growth forecast for 2021 to  5.6%Central Bank upgrades Armenia`s economic growth forecast for 2021 to  5.6%
Central Bank Governor: Inflation in Armenia is more supply-drivenCentral Bank Governor: Inflation in Armenia is more supply-driven
Central Bank: Transfers from USA to Armenia are growing rapidlyCentral Bank: Transfers from USA to Armenia are growing rapidly
Armenia and Ukraine launched the improvement of trade and economic  relationsArmenia and Ukraine launched the improvement of trade and economic  relations
Official and real y-o-y inflation continues to accelerate in ArmeniaOfficial and real y-o-y inflation continues to accelerate in Armenia
Central Bank of Armenia once again raised the refinancing rate - from  7% to 7.25%Central Bank of Armenia once again raised the refinancing rate - from  7% to 7.25%
About 2 billion drams to be allocated for the installation of  photovoltaic stations in seven regions of ArmeniaAbout 2 billion drams to be allocated for the installation of  photovoltaic stations in seven regions of Armenia
"Veolia Djur" proposes to increase water tariff by 43.7 drams
Mher Grigoryan: Trade and economic relations between Armenia and  Ukraine have great potential for developmentMher Grigoryan: Trade and economic relations between Armenia and  Ukraine have great potential for development
"Become a shareholder": ACBA Bank issued its first 500.000 shares  with a total volume of 7.5 billion drams
IDBank as a sponsor of the charity concert IDBank as a sponsor of the charity concert "Armenian Rock for Children with Cancer"
As of September 10, 2021, tax collection exceeded indicators of  pre-crisis 2019 by 4.9% in ArmeniaAs of September 10, 2021, tax collection exceeded indicators of  pre-crisis 2019 by 4.9% in Armenia
The collector coin dedicated to the 30th anniversary of the Republic  of Armenia has been issued by Central BankThe collector coin dedicated to the 30th anniversary of the Republic  of Armenia has been issued by Central Bank
Minister of Finance of Armenia and Ambassador of India discussed  possible directions for development of cooperationMinister of Finance of Armenia and Ambassador of India discussed  possible directions for development of cooperation
 Construction of Construction of "Friendship Bridge" on Armenian-Georgian border is in  full swing
Armenia reduced exports of molybdenum, zinc and copper concentratesArmenia reduced exports of molybdenum, zinc and copper concentrates
Armenia increased export of all alcoholic beverages produced in  countryArmenia increased export of all alcoholic beverages produced in  country
Armenia significantly increased volume of exports and imports of  fruit and berry cropsArmenia significantly increased volume of exports and imports of  fruit and berry crops
Armenia in H1 2021 increased grape exports by 66.7% Armenia in H1 2021 increased grape exports by 66.7% 
Regular meeting of Armenian-German intergovernmental commission took  place in BerlinRegular meeting of Armenian-German intergovernmental commission took  place in Berlin
Exclusive opportunity for VISA Signature cardholders of Converse BankExclusive opportunity for VISA Signature cardholders of Converse Bank
Armenia significantly reduced sugar importsArmenia significantly reduced sugar imports
Imports of oil products to Armenia grew by 3.7% in the first half of  2021Imports of oil products to Armenia grew by 3.7% in the first half of  2021
Armenia continues to reduce imports and exports of passenger carsArmenia continues to reduce imports and exports of passenger cars
Expert: Institutional solutions are needed in the development of  public-private dialogue (PPD)Expert: Institutional solutions are needed in the development of  public-private dialogue (PPD)
Diamond exports from Armenia have increased several-foldDiamond exports from Armenia have increased several-fold
Online processes will replace paperwork and the need to visit customsOnline processes will replace paperwork and the need to visit customs
About 100 thousand residents of 5 regions of Armenia will receive  round-the-clock water supplyAbout 100 thousand residents of 5 regions of Armenia will receive  round-the-clock water supply
Public-private dialogue is not going well in ArmeniaPublic-private dialogue is not going well in Armenia
YOY inflation in Armenia reaches 8.8% in August 2021YOY inflation in Armenia reaches 8.8% in August 2021
Armenia cuts gold exports, increasing importsArmenia cuts gold exports, increasing imports
Exports grow faster than imports in Armenia`s foreign trade with the  EU countries- 41% versus 11%Exports grow faster than imports in Armenia`s foreign trade with the  EU countries- 41% versus 11%
Armenia`s foreign trade turnover with EAEU countries reaches  double-digit growthArmenia`s foreign trade turnover with EAEU countries reaches  double-digit growth
As of the end of August, 488 thousand tourists visited ArmeniaAs of the end of August, 488 thousand tourists visited Armenia
Armenia slightly reduced the export of aluminum foil in H1, 2021Armenia slightly reduced the export of aluminum foil in H1, 2021
"The Power of One Dram" to overcome childhood cancer
A number of Dutch companies are interested in cooperation with  Armenia in IT fieldA number of Dutch companies are interested in cooperation with  Armenia in IT field
One of the successful and long-awaited programs of Ameriabank -One of the successful and long-awaited programs of Ameriabank -"  Generation A 13 "  is launched  
Armenian service sector tries to restore growth ratesArmenian service sector tries to restore growth rates
Nikolay Podguzov: The share of drams in the implementation of  projects on the territory of Armenia will grow Nikolay Podguzov: The share of drams in the implementation of  projects on the territory of Armenia will grow "dramatically"
IDBank prematurely finished the placement of the second tranche of bonds of 2021IDBank prematurely finished the placement of the second tranche of bonds of 2021
Revenue of Armenia`s trade sector increased by 7.5% to $ 3.4 billion  in 7 monthsRevenue of Armenia`s trade sector increased by 7.5% to $ 3.4 billion  in 7 months
Armenia imposed temporary restrictions on export of copper  concentrate, molybdenum concentrate, ferromolybdenum, and molybdenum  productsArmenia imposed temporary restrictions on export of copper  concentrate, molybdenum concentrate, ferromolybdenum, and molybdenum  products
For the first time, ACRA will assign  sovereign rating to Armenia  with  assistance of the EDBFor the first time, ACRA will assign  sovereign rating to Armenia  with  assistance of the EDB
EBRD representative: We are ready to contribute to the further  development of ArmeniaEBRD representative: We are ready to contribute to the further  development of Armenia
Eurasian Development Bank provided Ardshinbank with a $ 20 million  loan to finance SMEsEurasian Development Bank provided Ardshinbank with a $ 20 million  loan to finance SMEs
Read more


Exchange rates
16.09.2021
RUB6.720.01
USD486.37-0.63
EUR572.46-3.32
GBP672.07-1.26
CAD384.760.39
JPY44.45-0.09
CNY75.610.10
CHF526.43-4.42