Friday, August 16 2019 17:08
Naira Badalian

"Veolia Jur" appealed to PSRC to review the current water tariff:  What does the new elaboration promise the consumer?

"Veolia Jur" appealed to PSRC to review the current water tariff:  What does the new elaboration promise the consumer?

ArmInfo.The  single water supply operator in Armenia - "Veolia Jur" company applied to the Public Services Regulatory Commission (PSRC) to review the current water  tariff. If the application is approved and the authorities refuse to  subsidize the difference further, the tariff for the consumer will be  increased.

According to the Regulator's press service, the Commission accepted  for examination the application of a single operator dated August 7,  2019 to clarify tariffs for water supply and sanitation. As head of  the tariff policy department of the PSRC Ashot Ulikhanyan told  ArmInfo, the application will be examined within the next 80 days  from the receipt of the application. If approved, the new regulations  will enter into force on January 1, 2020.

So, according to the application, "Veolia jur" proposes to establish  a retail tariff of 128.780 drams (excluding VAT) and 154.536 drams  (including VAT) for drinking water supply per 1 cubic meter. It is  proposed to specify services for drainage water up to 22.72 drams  (excluding VAT) and 27.271 drams (including VAT), in total - up to  181.8 drams (including VAT) against the current 191.4 drams.

The tariff for water supply and drainage water to persons licensed to  provide this type of service, communities and community budget  departments, non-profit organizations is proposed to set the  following:  wholesale tariff of 30.301 drams (excluding VAT) and  36.361 drams (including VAT) for water supply for 1 cubic meter  drinking water, and services for drainage water it is proposed to  clarify up to 15.151 drams (excluding VAT) and 18.181 drams  (including VAT).

Drainage water of "Karen Demirchyan Yerevan Subway" CJSC, according  to the application, is planned in the amount of 9.276 drams  (excluding VAT) and 11.131 drams (including VAT).

At first glance, and as a result of simple mathematical addition, we  can conclude that the water tariff is reduced. But there is more to  it than that. As the saying goes, the devil is in the details.

On November 22, 2017, PSRC approved the application of the single  water supply operator in Armenia - "Veolia Jur" company (daughter of  the French Veolia Enviroment SA) to increase the water tariff and  from January 1, 2018 increased the water tariff in Armenia from 180  drams to 191,414 drams per 1 cbm. Of these, the tariff for water  supply amounted to 162,702 drams, and for the drainage water - 28,712  drams.  The tariff for the supply of wholesale drinking water  services and drainage amounted to 57.423 drams per cubic meter  against the previous 47.853 drams. The tariff for groundwater  drainage of "Karen Demirchyan Yerevan Subway" CJSC amounted to 11.114  drams per cubic meter. At the same time, it was reported that water  tariffs under the lease agreement with Veolia, for the second year of  its activity, should be adjusted depending on the electricity tariff,  inflation, as well as retail supply volumes in the water supply  sector.

On November 28, 2018, PSRC approved the application of Veolia Jur  CJSC on the application of the previous tariff for drinking water and  wastewater disposal. Initially, it was envisaged that the tariff  should have been increased by 10.4858 drams and amounted to 202.272  drams, however, on the basis of the signed memorandum of  understanding between the Ministry of Energy Infrastructures and  Natural Resources of the Republic of Armenia and Veolia Jur CJSC, it  was stated that this tariff rate will start to apply from 2025 year.  Thus, the rate remained at the level of 191.414 drams, however,  taking into account the subsidization of the tariff by the state in  the amount of 11.414 drams per 1 cubic meter of water, the water  tariff for the final consumer has remained unchanged - 180 drams per  1 cubic meter.  And then it becomes obvious that the next  "refinement" of the de facto water operator will lead to an increase  in the price of water supply and sanitation services for the final  consumer - from the current 180 drams per 1 cubic meter up to 181.8  drams. Unless, of course, the authorities remain committed to a  tariff subsidy policy.

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Government Bonds

Issue volume

10 billion

Volume of T-bills for placement

200 million

Volume of submitted competitive applications

200 million

Volume of satisfied bids

200 million

Yield at cut-off price

 5.8314%

Maximum yield

 5.8314%

Мinimum yield

 5.8314%

Weighted average yield

 5.8314%

Number of participants

2

The maturity date of T-bills

03.02.2020

ArmEx

 

СПРОС (Покупка)

USD

Средневзв. Цена

482,00

ПРЕДЛОЖЕНИЕ (Продажа)

  USD

Средневзв. Цена

-

СДЕЛКИ

USD

Цена откр.

482,00

Цена закр.

482,00

Мин. Цена

482,00

Макс. Цена

482,00

Ср/взв. Цена

482,00

-0.16

Кол-во сделок

1

Объем (инвал.)

200 000

0бъем (драм)

96 400 000

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