Wednesday, December 25 2019 16:06
Alexandr Avanesov

PSRC: Negotiations with Russia on gas prices for Armenia will enter  the active phase from February 2020

PSRC: Negotiations with Russia on gas prices for Armenia will enter  the active phase from February 2020

ArmInfo. Negotiations with the Russian Federation on gas prices for Armenia will enter the active phase from February 2020.  Chairman of the Public Services  Regulatory Commission (PSRC) of the Republic of Armenia Garegin  Baghramyan informed this to journalists on December 25.

According to him, until the situation with gas prices at the border  is finally clarified, it is difficult to forecast the possibility of  tariff increases for consumers in the country. For this reason, the  head of the Regulator called to wait until February 2020, when many  questions will be answered.

It should be noted that the contract for the supply of Russian gas to  Armenia at a price of $ 165 per 1,000 cubic meters expires on  December 31, 2019, but the price for 2020 is still unclear.

Earler, Hrant Tadevosyan, Director General of Gazprom Armenia CJSC,  reported that there has been a positive progress in the negotiation  process. According to him, agreement has been reached on a number of  issues, negotiations are ongoing on the others. The Director General   emphasized that during the negotiations both forecasted volumes of   gas consumption in Armenia and investments in the gas transmission   network are discussed. The gas tariff, Tadevosyan noted, will largely   determine the volumes that will need to be spent in the system.   According to him, the tariff is still unknown, therefore, for 2020   investments are indicated in a smaller volume than for 2021-2024. The   total investment for five years is slightly less than $ 130 million,   but less investment is planned in the first year due to uncertainties   with the tariff. "Naturally, as long as we don't know what tariff we   will have, it's difficult for us to forecast how much money we will   have and what kind of work we will have enough for them," Tadevosyan   explained.

Back in early November of this year Garegin Baghramyan, the head of   the Public Services Regulatory Commission (PSRC), referring to   statements that the gas tariff for the end consumer will not increase   in the winter season in any case, explained that such "restrictions"   are due to purely procedural terms. That is, when the Russian   "Gazprom" decides on the gas tariff, "Gazprom Armenia" will apply for   a revision of the tariff for the domestic consumer, which the PSRC   will consider within 80 business days. Then the tariff will be   determined from the end of the specified 80 working days and will   enter into force after 30 days - in the spring of 2020.

To recall, on December 31, 2019, the contract with Gazprom on the   supply of Russian gas to Armenia at a price of $ 165 per 1,000 cubic   meters expires.

Meanwhile, according to ArmInfo analysts, the price of gas will   definitely increase, the only question is how much. They remind that   earlier Prime Minister Nikol Pashinyan pointed out the need to apply   such a price that would not hurt the country's economy, thereby   becoming a hindrance to the implementation of the economic revolution   in the country. One of the constraining factors in this direction   could be the 400- kilovolt Iran- Armenia power transmission line,   which is  under construction, due to which it would be possible to   significantly increase the supply of Iranian gas in the amount of 1   cubic meter in exchange for the supply of 3 kWh of electricity from   Armenia. To recall, within the framework of this program, actually 1   kW / h of electricity is supplied to Armenia for free.

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