ArmInfo. In an interview with reporters on October 20, Head of the Public Services Regulatory Commission (PSRC) of Armenia, Garegin Baghramyan, refrained from confirming whether there will be an increase in gas and electricity tariffs in 2022.
" Currently, the negotiations on price of gas at the border are underway, moreover, complex negotiations are underway that concern all property managed by Gazprom Armenia and include the issue of gas prices at the border, the issue of Hrazdan-5, and the issue of the gas supply system. All will depend on the agreements reached, "he said.
Touching upon yesterday's statement by Deputy Prime Minister Mher Grigoryan that "there is a consensus on the gas price at the border and the current tariff in Armenia," Garegin Baghramyan stated that he would refrain from commenting until an intergovernmental agreement is concluded. As of today, according to the head of the Regulator, PSRC has not received an application to revise the tariff for electricity and gas from ENA CJSC or from Gazprom Armenia. "The tariff for gas is being adjusted from January 1 (last revised in July), for electricity - from February 1. If the price of gas at the border remains at the current level - $ 165 per 1,000 cubic meters, there will be no increase in tariffs," - he declared.
To note, in case of applying with the relevant application, PSRC will consider it within 80 working days. The rate will be determined from the end of the specified 80 working days and will take effect after 30 days.
In any case, as Garegin Baghramyan explained, revisions in the energy system are carried out annually, regardless of whether this affects the end consumer or not. That is, the process of internal tariff revisions is already underway. As the head of the PSRC explained, everything will depend on the forecast data on the balances of electric energy and capacity in the energy system.
To note, gas price for Armenia on the border with Georgia from the beginning 2019 was determined at $ 165 per thousand cubic meters. From January 1, 2019, the period of validity of a 5-year agreement between Yerevan and Moscow, which was based on a price of $ 150, ended. On September 15, 2021, in parliament during the government hour, Deputy Prime Minister Mher Grigoryan said that Gazprom insists that within the framework of the agreement of 2013, the amount of profit specified in the document does not satisfy them. On October 19, Mher Grigoryan told reporters that the price of Russian gas for Armenia will be preserved if it is possible to ensure the necessary profitability of the 5th unit of the Hrazdan TPP.
As Grigoryan emphasized, there is a problem with the Gazprom group "in the global sense." "Under the 2013 contract, the 5th power unit was built - a thermal power plant that generates electricity. Unfortunately, the thermal power plant is not working now. At the same time, all of Gazprom's investments in Armenia ($ 250 million was invested in the plant, Ed. note) under the same agreement should have a yield of about 9% per annum. The construction of the power plant is a serious and large investment, but today these investments do not generate the profit that would ensure the profitability stipulated by the 2013 agreement, "Grigoryan explained. According to him, this issue is on the agenda, the discussion continues. "If we manage to resolve this issue, there will be a very stable situation with regard to gas prices," he said.
To note, the cost of electricity generated at the Hrazdan TPP is one of the highest (about 32 AMD per 1 kWh of electricity). "Gazprom" PJSC is the only gas supplier to Armenia for domestic consumption. Russian "blue fuel" supplies to consumers in Armenia are carried out by Gazprom Armenia (a subsidiary of Gazprom) in transit through the territory of Georgia.
