Wednesday, August 2 2017 18:49
Naira Badalian

Veolia Jur intends to apply to PSRC for water tariff revision

Veolia Jur intends to apply to PSRC for water tariff revision

ArmInfo. Veolia Jur, the unified  operator in the sphere of water supply and sanitation in Armenia,  intends to apply to the Public Services Regulatory Commission of the  Republic of Armenia (PSRC) in order to revise the tariffs for water.  This was stated to the correspondent of ArmInfo by the press  secretary of Veolia Jur Murad Sargsyan.

According to the representative of Veolia Jur, by the 15-year lease  agreement, the company is obliged to submit an application to the  state regulator in August of each year in order to clarify the tariff  for the next year. Already on the basis of studies and taking into  account the three main factors, namely, changes in the electricity  tariff, inflation rates, and the volume of retail supplies in the  water sector, the PSRC will decide whether to raise or lower the  water tariff. In this case, as Sargsyan noted, the revision of the  tariff does not necessarily mean raising them, because taking into  account the above arguments, tariffs may be reduced from January 1,  2018. "For today, we are not talking about raising the tariff, it is  about mandatory clarification of the tariff for water," he explained.

ArmInfo previously reported that in November 2016 a 15-year lease  agreement was signed with a new, unified operator of the water supply  and sanitation sector of Armenia. Already a new operator of water  supply, unified throughout the country and with a single tariff,  started operating on January 1, 2017 and took over the management of  five existing operators: Yerevan Dzhur, Armwatercanal, Shirak Wate  Canal, Lori Water Canal and Nor Akunk. After the single operator of  water came into possession of the "water economy" of Armenia,  starting from January 1, 2017 in the republic a single tariff for  water was set at 180 drams per one cubic meter, including VAT, thus  for residents of the capital, commemorating the rise in price  (previously low The tariff was in force in Yerevan, it makes 170,256  AMD per 1 cubic meter of water, and in the regions - up to 200 AMD,  in Armavir - 204). Today's information about a possible revision of  the tariff caused public outcry. As some media reported, the company  intends to raise the tariff to 194.3 AMD. For large subscribers, it  is proposed to raise the tariff to about 58.3 from the current 54.

However, according to the law, voicing the intention to raise the  tariff, the company must justify it. Under the same lease, it can be  revised if the following conditions exist: with a significant  increase in the price of electricity, in conditions of significant  fluctuations in the exchange rate, with an expansion in the scope of  the company's obligations requiring additional investment or  following a technical audit conducted by an international independent  organization, that Can not be earlier than 2018.

It is also important that when signing the contract with the French  company it was announced that the lease will also specify the basic  tariffs for 15 years, where the base tariff for the first year will  be set at the rate of retail supplies in the sphere of water supply  and sewage disposal. Tariffs for water can be reviewed no more than  once a year. It was also noted that, for at least 2 years, the  company would not request a tariff increase. This item was discussed  with ArmInfo Murad Sargsyan refrained from commenting.

To recall, in November 2016, a 15-year lease was signed with a new,  unified operator in the sphere of water supply and sanitation in  Armenia. The new operator of water supply undertook to provide its  subscribers with services (water supply, drainage and wastewater  treatment) for a total of about 800 million euro within 15 years. And  by 2030, throughout the territory where the company will provide its  services, water supply should become round-the-clock. To fulfill the  contract, including the point on the modernization of the water  supply system, serious investments will be required. Within 15 years,  Veolia will invest 37.5 billion AMD of its own funds in capital work.  In its turn, the Armenian side agreed within the first 4 years to  attract about $ 200 million to the company's important programs,  including at the expense of the European Bank for Reconstruction and  Development, the German Development Bank KfW and the European  Investment Bank.

To note, according to the National Statistical Service of Armenia in  2016, revenues from water supply, waste treatment and processing and  receipt of secondary raw materials increased by 7% per annum (against  10.1% growth a year earlier) to 22.1 billion drams. Moreover, the  growth in this segment, mainly, caused the collection, processing and  receipt of water (annual growth of 3.4%, with a decline for the month  by 1.2%). In January-February 2017, revenues from water supply, waste  treatment and processing and receipt of secondary raw materials  increased by 5.3% per annum (against 10% growth a year earlier) to  3.8 billion drams during the reporting period. Moreover, the upward  annual dynamics in this segment, mainly, resulted in the collection,  processing and receipt of water (an increase of 3.5%).


News
Deputy Minister of Economy of Armenia will visit Kyiv to discuss  control of prices for basic-needs products and conclusion of futures  contractsDeputy Minister of Economy of Armenia will visit Kyiv to discuss  control of prices for basic-needs products and conclusion of futures  contracts
Armen Sarkissian attended 5th Conference of Armen Sarkissian attended 5th Conference of "Future Investment  Initiative" in Saudi Arabia
Ameriabank and HSBC Armenia to provide their customers access to each other’s ATMs without additional feesAmeriabank and HSBC Armenia to provide their customers access to each other’s ATMs without additional fees
Syrian Ambassador proposed to Armenian Economy Minister to organize  exhibition with participation of Syrian business circleSyrian Ambassador proposed to Armenian Economy Minister to organize  exhibition with participation of Syrian business circle
Gluttony must be stopped: Head of Economy Ministry on reduction of  New Year holidaysGluttony must be stopped: Head of Economy Ministry on reduction of  New Year holidays
 Moscow is optimistic about prospects for investments in Armenian  economy Moscow is optimistic about prospects for investments in Armenian  economy
Seminars with assistance from OECD and US attache to Germany will be  organized for Armenia`s SRC employees Seminars with assistance from OECD and US attache to Germany will be  organized for Armenia`s SRC employees 
In 2022, capital investment of Central Bank will amount to 7.3  billion drams, administrative expenses - 8.5 billion dramsIn 2022, capital investment of Central Bank will amount to 7.3  billion drams, administrative expenses - 8.5 billion drams
A success story - Under one roofA success story - Under one roof
CBA: Large-scale state investments will provide 7% GDP growth in  Armenia in 2022 CBA: Large-scale state investments will provide 7% GDP growth in  Armenia in 2022 
Armenia to more than double budget assistance to Artsakh in 2022Armenia to more than double budget assistance to Artsakh in 2022
Ministry of Finance: Armenia will return to permissible limits of  government debt allowed by law by 2026Ministry of Finance: Armenia will return to permissible limits of  government debt allowed by law by 2026
Armenia`s economic activity increased by 4.4% per annum for 9 months  of 2021Armenia`s economic activity increased by 4.4% per annum for 9 months  of 2021
Science funding to increase by 83% in 2022: Draft state budget of  ArmeniaScience funding to increase by 83% in 2022: Draft state budget of  Armenia
Armenia will allocate 32% more for infrastructure development in  2022: PashinyanArmenia will allocate 32% more for infrastructure development in  2022: Pashinyan
Armenia`s defense budget to grow by 11% in 2022: PremierArmenia`s defense budget to grow by 11% in 2022: Premier
Pashinyan hopes for successful implementation of number of large  investment projects in  field of metallurgyPashinyan hopes for successful implementation of number of large  investment projects in  field of metallurgy
Martin Galstyan: Armenia can become a home for numerous innovationsMartin Galstyan: Armenia can become a home for numerous innovations
Armenia and San Marino discuss opportunities for cooperation in the field of High TechnologiesArmenia and San Marino discuss opportunities for cooperation in the field of High Technologies
Volume of dollar transactions decreased by 65.3% on the foreign exchange interbank market for October 18-22Volume of dollar transactions decreased by 65.3% on the foreign exchange interbank market for October 18-22
Hakob Arshakyan: By 2025, Armenia`s engineering turnover will reach 500 billion drams, and the staff- 35 thousand peopleHakob Arshakyan: By 2025, Armenia`s engineering turnover will reach 500 billion drams, and the staff- 35 thousand people
Deputy Minister of Economy of Armenia was sent to Moscow on October  24-26Deputy Minister of Economy of Armenia was sent to Moscow on October 24-26
Armenia simplifies licensing process for foreign companies for a  number of areas of activityArmenia simplifies licensing process for foreign companies for a  number of areas of activity
Copper smelter may be launched in Armenia in two to three yearsCopper smelter may be launched in Armenia in two to three years
Iranian industrial park to be established in ArmeniaIranian industrial park to be established in Armenia
Armenia`s insurance sector increased payments to state treasury by  31.3%, in Jen-Sep of 2021Armenia`s insurance sector increased payments to state treasury by  31.3%, in Jen-Sep of 2021
EDB to provide Armenia with  $ 3mln grant to fight coronavirus  infectionEDB to provide Armenia with  $ 3mln grant to fight coronavirus  infection
Ameriabank tops list of largest taxpayers among commercial banks in  Armenia in 9 monthsAmeriabank tops list of largest taxpayers among commercial banks in  Armenia in 9 months
Gazprom Armenia returned to the leading position in the list of large  taxpayersGazprom Armenia returned to the leading position in the list of large  taxpayers
Telecommunications operators of Armenia for 9 months of 2021  increased tax payments to the state treasury by 16.3%Telecommunications operators of Armenia for 9 months of 2021  increased tax payments to the state treasury by 16.3%
PSRC Head: If the negotiations are concluded successfully, the water  tariff will be increased by only 20 drams PSRC Head: If the negotiations are concluded successfully, the water  tariff will be increased by only 20 drams 
EDB: Consumer demand recovery slows down in Armenia, further rate  hikes are possibleEDB: Consumer demand recovery slows down in Armenia, further rate  hikes are possible
Head of regulator refrains from confirming whether there will be  increase in gas and electricity tariffs in 2022Head of regulator refrains from confirming whether there will be  increase in gas and electricity tariffs in 2022
EEC intends to reach 93.6% in terms of food security by 2022EEC intends to reach 93.6% in terms of food security by 2022
Head of PSRC: Frequent power outages are not a consequence of the  post-war situationHead of PSRC: Frequent power outages are not a consequence of the  post-war situation
The USA finally determined the duties on the import of aluminum foil  from Armenia and a number of other countriesThe USA finally determined the duties on the import of aluminum foil  from Armenia and a number of other countries
 Ministry of Finance: Most of the purchases from one supplier are  carried out by the healthcare system  Ministry of Finance: Most of the purchases from one supplier are  carried out by the healthcare system 
Courts will consider complaints about violations during public  procurement auctionsCourts will consider complaints about violations during public  procurement auctions
Dmitry Volvach: Russia is investing over $ 1 billion in the Armenian  economyDmitry Volvach: Russia is investing over $ 1 billion in the Armenian  economy
Minister: Development of decentralized interregional cooperation is a  priority task of the Armenian governmentMinister: Development of decentralized interregional cooperation is a  priority task of the Armenian government
Is it realistic to maintain the current gas price? Deputy Prime  Minister of Armenia explained Is it realistic to maintain the current gas price? Deputy Prime  Minister of Armenia explained 
RA Economy Minister discussed Armenia`s investment potential with  U.S. Ambassador RA Economy Minister discussed Armenia`s investment potential with  U.S. Ambassador 
Armenia and Russia have developed common approaches to attracting  investmentArmenia and Russia have developed common approaches to attracting  investment
32nd energy charter conference ministerial meeting to be held in  Yerevan32nd energy charter conference ministerial meeting to be held in  Yerevan
Veronika Nikishina: REC Group is interested in close cooperation  with Armenia in a wide range of integration projectsVeronika Nikishina: REC Group is interested in close cooperation  with Armenia in a wide range of integration projects
For 9 months of 2021, public debt of Armenia increased by $ 1.069  billionFor 9 months of 2021, public debt of Armenia increased by $ 1.069  billion
Joint Project of HSBC Group and Orran Benevolent Organisation Supports 200 Young People in Regions to Get Jobs and Start their BusinessJoint Project of HSBC Group and Orran Benevolent Organisation Supports 200 Young People in Regions to Get Jobs and Start their Business
Armenian NPP connected to RA unified power grid since October 17Armenian NPP connected to RA unified power grid since October 17
Leadership of SRC of Armenia will be sent to MoscowLeadership of SRC of Armenia will be sent to Moscow
Russia`s trade representative: Armenian market is traditionally attractive for RussiaRussia`s trade representative: Armenian market is traditionally attractive for Russia
5th meeting of Armenian-Czech Intergovernmental Commission on  Economic Cooperation held in Yerevan5th meeting of Armenian-Czech Intergovernmental Commission on  Economic Cooperation held in Yerevan
Make payments via Idram in online stores, get free delivery or a cashback and take part in the drawMake payments via Idram in online stores, get free delivery or a cashback and take part in the draw
Interest rates on loans and deposits have grownInterest rates on loans and deposits have grown
In Moscow, Suren Papikyan discussed issues related to In Moscow, Suren Papikyan discussed issues related to "North-South  Power Corridor" and construction of a new nuclear power unit in  Armenia 
Armenian Minister of Economy received Deputy Minister of Industry and  Trade of Czech RepublicArmenian Minister of Economy received Deputy Minister of Industry and  Trade of Czech Republic
Issue of feasibility of creating institution of business ombudsman is  being discussed at RA Economy Ministry Issue of feasibility of creating institution of business ombudsman is  being discussed at RA Economy Ministry 
Armenia is ready to cooperate in developing common approach to  protect EAEU internal market in case of pressure from third partiesArmenia is ready to cooperate in developing common approach to  protect EAEU internal market in case of pressure from third parties
Armenian government approves draft decision on increasing ANIF  authorized capitalArmenian government approves draft decision on increasing ANIF  authorized capital
Pashinyan: Formation of the common energy market of the EAEU is a  prerequisite for the full realization of the potential of economic  integrationPashinyan: Formation of the common energy market of the EAEU is a  prerequisite for the full realization of the potential of economic  integration
Official supplier of furniture for shops of number of world brands  and a pharmaceutical company received tax incentive from RA  Government Official supplier of furniture for shops of number of world brands  and a pharmaceutical company received tax incentive from RA  Government 
Read more


Exchange rates
27.10.2021
RUB6.78-0.10
USD477.310.37
EUR553.35-0.66
GBP655.63-2.26
CAD384.52-1.07
JPY42.000.17
CNY74.750.10
CHF519.611.37