ArmInfo. In the near future, Electric Networks of Armenia CJSC will present the results of the audit in order to study the company's investment program and its possible impact on the tariff component. This was announced on December 25 at the final press conference by the head of the PSRC Garegin Baghramyan.
According to him, the auditor represented by Grant Thornton was selected on a competitive basis. Research conducted on the basis of the proposed technical specifications. The purpose of the audit was to study the possible impact of the investment program of Electric Networks of Armenia CJSC on the final tariff for consumers. In addition, studies were necessary to obtain reliable data on the project and apply more effective methods of evaluating the company's investment program. Such work will become mandatory and will be carried out once per year, which will ensure the reliability of investments and their impact on tariffs. This practice will apply to other companies, and for auditors who will conduct research, already next year, new technical specifications will be proposed.
In July of this year ArmInfo informed that PSRC agreed to conduct a technical audit of the company's investment program and work schedule in Electric Networks.
The regulator took note of the company's statement of intent to hold an international competition to identify an auditing company. In this regard, the PSRC approved the text of the announcement of the competition in Armenian and English. The commission believes that the conditions imposed on the winner of the competition should be fixed in the contract between the customer and the contractor. Payments to an auditing company will be made on the basis of the PSRC order.
Earlier, ArmInfo reported that the total cost of the investment program of Electric Networks of Armenia CJSC for the next 10 years will be about $ 1 billion (including VAT). Funds will be raised from various sources, including the European Bank for Reconstruction and Development (80 million euros) , Asian Development Bank ($ 80 million), Eurasian Development Bank ($ 20 million), other sources. Investments will help improve the distribution of electricity in the private sector, reducing losses from the current 10% to 8% by 2021.
The Tashir group of companies, headed by a large Russian businessman of Armenian origin Samvel Karapetyan and Inter RAO company, on September 30, 2015 signed an agreement on the sale and purchase of electric power assets of the Russian energy holding in the Republic of Armenia - Electric Network of Armenia CJSC and Hrazdan TPP. Electric Networks of Armenia CJSC was established in May 2002 as a result of the merger of four state regional electricity distribution and sales companies: Yerevan Electric Networks, Northern Electric Networks, Southern Electric Networks and Central Electric Networks. The main activity of the company is the regulated distribution and sale of electricity. The total length of networks is 36 thousand km. The company serves about 985,000 consumers. Electric Networks of Armenia CJSC has an exclusive license for transmission and distribution of electricity on the territory of the Republic of Armenia at guaranteed tariffs calculated on the basis of the company's costs and an adjustable rate of return on invested capital.