Minister of Energy Infrastructures and Natural Resources of RA sees no grounds for growth of electricity tariffs in Armenia in the coming years

ArmInfo. Minister of Energy Infrastructures and Natural Resources of the Republic of Armenia Ashot Manukyan sees no reason for the growth of electricity tariffs in Armenia in the coming years. He stated this at a press conference on October 20. 

Nevertheless, according to Ashot Manukyan, in connection with the modernization of the Armenian nuclear power plant in 2018-2019, in the country there will be a strong pressure on the tariff. In 2018, the station will be shut down for six months, and in 2019 - for six months and 12 days. Taking into account the fact that the tariff from the nuclear power plant is the lowest in the country, and with the thermal blocks - the most expensive, the situation can really develop quite tense. In order to solve the problem, the Armenian government opted for the transfer of High Voltage Power Grids to the trust management of Tashir Capital. Thus, the minister continued, the expenses affecting the final tariff will be reduced. The state transfers high-voltage networks for a period of five years, also because in 2021-2022. the peak of payments of the basic credit resources will fall. Nevertheless, the state reserves the right, if the conditions stipulated by the agreement are not fulfilled at any time, without explaining the reasons, to terminate the trust management document, informing the other side about it for six months. It is expected that this program, which is of a pilot nature, will begin to be applied in March 2018. Prior to this, the executive body will have to review and approve the trust management program, but if the program does not suit the government, the contract will be suspended.

Recall that on August 24, the Armenian government decided to transfer the "High Voltage Electric Networks" CJSC to the trust management of the "Tashir Capital" company, which already owns the assets of the company "Electric Networks of Armenia". Under the trust management agreement, all 100% of the shares of "High Voltage Networks" will be transferred to the trust management of "Tashir Capital", that is 649,231 shares, each with a face value of 13 600 drams worth 8.8 billion drams. According to the contract, the company will receive the right of trust management for a period of 5 years with the subsequent possible prolongation of the contract for the same term and on the same terms. Among the advantages of transferring "High Voltage Electric Grids" to trust management, the authorities note the optimization of costs when synchronizing the work of the company and "Electric Networks of Armenia", as well as increasing the productivity of investments, managing and maintaining a unified technical policy. Such a synergy of the two companies will maximize the optimization of costs. In addition, it is planned that the company will commit itself to implementing the investment program for the construction of the Armenia- Georgia electricity transmission line, the transformer substation, and the repair and modernization of six substations of the system.