ArmInfo.From January 1, 2022, the single operator of water supply company "Veolia Djur" proposes to increase the water tariff by 43.7 drams - up to 223.7 drams (including VAT) per 1 cubic meter. The Public Services Regulatory Commission (PSRC) accepted the application for revision of tariffs for water supply services on August 12 of this year.
In September 2019, ArmInfo, referring to the head of PSRC Garegin Baghramyan, reported that Veolia Djur (a subsidiary of the French Veolia Enviroment SA - ed. note) applied to the Commission to revise the current tariff for drinking water from the current 180 AMD for 1 cubic meter up to 181.8 drams (including VAT). As the head of PSRC Garegin Baghramyan assured the ArmInfo correspondent, despite the existence of an application, the tariff will remain unchanged both in 2020 and 2021. According to him, over the past months, the Armenian government has been negotiating with Veolia Djur on the water tariff, resulting in an agreement to lower the base water tariff due to additional tax levies and in return for lower network rent.
And, since, according to established practice, every year, before August 10, the company "Veolia Djur" applies to PSRC, taking as a basis the base tariff and adjustments depending on the electricity tariff, inflation rates, as well as the volume of retail supplies in the water supply sector, in August 9, 2021, the water supply operator applied to the Commission mainly referring to the annual inflation (in January-June compared to January-June last year it was 5.7%, and in January-August compared to the same period in 2020 - 6.4% %).
As reported on the PSRC website, the Regulator from September 1 to November 1 will monitor the actual volumes of water supply from "retailers" to identify cases of illegal connection to the water supply system and violations. If such facts are revealed, the registered volumes will also be taken into account in the calculation of the new water tariff. The regulator also calls on citizens to join the "campaign" and, if there is information about illegal consumption, inform the PSRC by phone (010) 584 529.
The application will be studied within the next 80 days from the date of receipt of the application. If approved, the new regulations will enter into force on January 1, 2022. Meanwhile, when in 2016 the Armenian government announced the results of an international tender to determine a single water supply operator in the republic, it was officially announced that priority was given to the company that offered the lowest water tariff - French Veolia Enviroment SA. "The single tariff for water in Armenia in the next 15 years, even if it rises, will be insignificant," Regional Vice President of the French corporation Malika Genduri told reporters on November 21, 2016 at a press conference on the occasion of the completion of the tender. Then she did not name the value of the future tariff, adding that it will be determined by the regulatory body. "As you know, we have been supplying water to Yerevan for 10 years. I can say that out of all 40-odd countries where the company operates, the tariff in Yerevan is the lowest... It may increase, but insignificantly - given the obligations that we will undertake, now also outside Yerevan, "Genduri said. At the same time, the company pledged to significantly reduce losses in the water supply sector, and the responsible persons assured that, at least for two years after the establishment of a single tariff on the territory of Armenia, there will be no new revision upward.
Since January 1, 2017, a new single water operator, the French company Veolia Enviroment SA, has taken over the management of the property of five operating operators: "Yerevan-Jur", "Armvodokanal", "Shirak Vodokanal", "Lori Vodokanal" and "Nor Akunk". At the same time, from January 1, 2017, a single tariff for water was established in the republic, and for the residents of Yerevan it was increased from 170.256 drams per 1 cubic meter of water to 180 drams, including VAT. The participants in the process hastened to assure the citizens of the Republic of Armenia that this increase is based on their own interests, since the funds will be directed to improve the system and expand the service network. At that time, Mushegh Karapetyan, Advisor to the Water Supply and Wastewater Systems Department of the Ministry of Energy Infrastructures and Natural Resources, said in an interview with ArmInfo correspondent that the state policy is to include the territories remaining "overboard" in the service zone of a single water supply operator. Meanwhile, the former chairman of the State Committee for Water Resources of Armenia Arsen Harutyunyan told ArmInfo correspondent that Veolia has no contractual obligations and the community water infrastructure can be transferred under the management of a single operator only after the formation of the necessary water system.
