ArmInfo. The Ministry of Energy Infrastructures and Natural Resources of the Republic of Armenia intends to present a package of legislative initiatives to liberalize the country's electricity market this year. Hayk Harutyunyan, Deputy Minister of Energy Infrastructures and Natural Resources of Armenia, wrote this on his Facebook page.
According to him, market liberalization will occur in the context of the creation of a common electricity market of the countries of the Eurasian Economic Union. As the deputy minister stressed, the legislative initiative can create economic prerequisites for the accumulation of electricity. "The development of the cumulative market is in our field of vision, we have a clear idea of the current state of the sphere, and what developments can be expected, moreover, negotiations were held with a number of electricity producers to solve economic and technical issues", said Hayk Hartyunyan. According to him, taking into account the structure of production of the electric power system and large energy pools, peak thermal stations, and most importantly, the possibilities of electricity exchange with neighbors, at this stage, investment in the funded system will not give the country any technical advantages". Another issue is if trade with Iran stops, or soon we get so much changing energy that can lead to problems with regulating regimes, then during this period it will be possible to resolve the issue", Hayk Harutyunyan said.
As former Deputy Minister of Energy Infrastructures and Natural Resources of Armenia, and Advisor to the Minister Areg Galstyan, noted earlier, work is underway to amend the Law on Energy. "Thus, the transition from one model to the model of market liberalization will be made in Armenia," Areg Galstyan said, while expressing the opinion that the structure of the republic's electric power industry today needs improvement and gradual liberalization in order to carry out international trade with neighboring countries. To this end, the deputy minister continued, in recent years the relevant conditions have been formed in the country. Despite the fact that there are still limited opportunities for competitiveness in the wholesale market, the presence of a serious difference in tariffs for generation facilities, nevertheless, these factors are not an obstacle to abandoning the model of a single buyer. It is necessary to create conditions for attracting other participants to the market. The Commission on Regulation of Public Services of the Republic of Armenia has already approved the Concept for the application of new mechanisms to improve and streamline the electric power system. In the conditions of market liberalization, it is envisaged to establish mechanisms of responsibility for both producers and consumers. Today, neither electricity producers nor its large consumers are responsible for sales and consumption (ordered capacity), which can cause unlimited fluctuations in tariff regulation. In the context of the best international experience, the responsibility of producers and large consumers for the quantities of electricity ordered and actually used should become. On the road to market liberalization, according to Areg Galstyan, it is necessary to create both an electronic platform and the formation of new structures in the electricity market. In particular, it is envisaged to create a market operator, which will act as the main person in charge of electricity
trade. It is also planned to improve the tariff p introduction of effective mechanisms. "In particular, we are talking about nighttime and daily tariffs, their magnitude, the time of application, in this connection, it will also be possible to consider seasonal, peak or night time with the aim of establishing new tariffs," Areg Galstyan said. Liberalization of the electricity market, according to Areg Gavlitna, will have a direct impact on tariffs.