Veolia Jur: Regulatory charges are false and unfounded

ArmInfo.The accusations of the Armenian regulator in abusing the company "Veolia Jur" by its dominant position in the water supply market are false and unfounded.  This is stated in the statement of the company, received by ArmInfo  agency.

On November 7, the State Commission for the Protection of Economic  Competition fined the operator of the water supply system of Armenia,  the company Veolia Jur, for 20 million drams. According to the  regulator, the operator purchased and installed over 30 thousand  water meters at inflated prices. It all started with the fact that  the Armenian-German company for the production of water meters  applied to the regulator, saying that because of the illegal actions  of "Veolia Jur" it was ousted from the market and ceased production.  It turned out that Veolia Jur, importing water meters and using its  status and market position, did not allow other companies to  participate in tenders for the purchase of instruments. And the  process of purchasing water meters was not transparent, as a result,  competitors of the water operator remained "overboard". In addition,  water meters imported by the operator in some cases were purchased at  inflated prices. So, in 2017, the average price for the devices  purchased by the company was 8400 or 9500 drams, depending on their  type. At the same time, the average price of devices on the market  varies from 3 to 7 thousand drams. As a result, in just one year the  company overpaid for the purchase of water meters for 100 million  drams, presenting this in documentation as investment expenses. The  regulator considered that "Veolia Jur" showed inappropriate behavior  by purchasing water meters at inflated prices and having the  opportunity to purchase them in the local market at regular prices.

However, according to "Veolia Jur", the charges of the commission  came as a complete surprise, since "Veolia Jur" in its activities  guided by the requirements of the laws of Armenia. The company  regrets that the decision of the commission was made without the  participation of its representatives and management.  The operator of  the drinking water system rejects all the allegations, believing that  Veolia Jur, a subsidiary of Veolia Group, which has 160 years of  experience, to implement the quality of services, high standards and  procurement rules, has a clear policy relationships with reliable  companies with the necessary experience and a rich convincing  history. From the company "Veolia Jur", which is part of the world's  leading operator, everyone expects the widest possible use of  international best practices and the provision of available  technologies. Based on these requirements, the company's activity is  aimed at the use of goods of the highest class and modern  technologies for the benefit of the country and its subscribers. The  company "Veolia Jur" is committed to its maximum responsibility for  its subscribers and for this reason, it will never make concessions  on the security of water supply services, wastewater disposal and  water quality. In this regard, Veolia Jur will challenge the decision  of the regulator, using all the possibilities provided for by the  legislation of the Republic of Armenia.