From January 1, 2022, water tariff will be increased: Changes will  not affect socially vulnerable segments of the population

ArmInfo.From January 1, 2022, the water tariff for consumers in Armenia will be increased by about 20 drams. At the same time, the RA authorities plan to keep the  current tariff for socially vulnerable groups of the population.  Chairman of the Public Services Regulatory Commission (PSRC) Garegin  Baghramyan told reporters in the parliament.

Earlier, ArmInfo reported that on August 9, 2021, the single operator  of the water supply system in Armenia, "Veolia Djur" company,  appealed to the Commission, proposing to increase the water tariff by  43.7 drams from January 1, 2022 - to 223.7 drams (including VAT) per  1 cubic meter, mainly referring to annual inflation (in January-June  compared to January-June last year it was 5.7). The application was  accepted by the PSRC for consideration on August 12 and will be  studied within the next 80 days from the date of receipt of the  application, and a decision on it must be made no later than December  1. If approved, the new regulations will come into force on January  1, 2022.

According to the PSRC head, the option of establishing a stable price  of 200 drams for the next 10 years instead of the current 180 drams  is currently being discussed. Changes in the tariff, as Bagramyan  pointed out, will not affect socially vulnerable groups of the  population.

Negotiations around the signing of a relevant agreement between the  Water Committee and "Veolia Djur" are close to completion. Within the  framework of this agreement, as indicated by the head of the  Regulator, the rent for the company will remain unchanged for the  next 10 years. "That is, we will have a tariff within 200 drams. At  the same time, a government decree is being put into circulation,  which proposes to single out socially vulnerable groups of the  population for whom the price will not rise," Garegin Baghramyan  said.  

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.  In September 2019, "Veolia Jur" applied  to the Commission to revise the current tariff for drinking water  from the current 180 AMD per 1 cubic meter up to 181.8 drams  (including VAT). However, at the expense of additional tax levies and  instead of reducing the rent for the network, an agreement was  reached to reduce the base tariff for water.  At the end of September  this year, the PSRC head, touching upon the next application of  "Veolia Djur" for an increase, recalled that the water supply system  in Armenia was leased for a period of 15 years. After the  announcement of the results of the tender, the company presented base  tariffs for 15 years, which are adjusted based on 3 factors  (depending on the electricity tariff, inflation rates, as well as the  volume of retail supplies in the water supply sector,  ed. note).  Based on the base price, as indicated by the head of the Regulator,  the tariff for 2022 will be 214 drams, that is, only on this line  there will be an increase of 34 drams, plus inflation and an increase  in the electricity tariff.

Nonetheless, the Armenian government hopes to achieve a more painless  increase by revising a number of conditions in the lease with the  company. If the negotiations end effectively, then the current tariff  of 180 AMD per 1 cubic meter will be saved for the socially  vulnerable groups of the population - about 100 thousand subscribers,  by analogy with the benefits in the line of payment for electricity  and gas. "A stable price policy will be developed for the rest of the  population, that is, the tariff will be increased to about 200 drams,  but not within one year, but within 10 years," he explained, adding  that with such a development, Armenia will already refuse clause of  the lease agreement, suggesting a reduction in tariff after 2026