Debt burden of generating energy companies in Armenia leads to  increase in tariffs by 5.5 AMD per kWh

ArmInfo. The debt burden of generating energy companies in Armenia leads to an increase in electricity tariffs. 

Thus, according to the data of the Public Services Regulatory Commission (PSRC), on December 23, a working discussion will take  place on the revision of electricity tariffs. PSRC will consider the  issue of increasing the basic tariff by 5.5 drams per kWh, on average  - 4.7 drams per kWh.  It is reported that as a result of the analysis  of various factors, it turned out that under the current tariffs, the  financial gap in the country's power supply system in the new tariff  year (from February 1, 2022) will amount to 23.8 billion drams. 

The main reason for the negative financial balance in the power  system is the high debt burden of power generating and distribution  companies.  This concerns the financial obligations of Gazprom  Armenia CJSC to the Hrazdan-5 station (USD 31.79 million annually)  under an agreement signed between the governments of the Republic of  Armenia and the Russian Federation. It is noted that it is within the  framework of these agreements that Armenia could claim a stable price  for Russian gas supplies over the next 10 years at a price of $ 165  per 1,000 cubic meters.  

The report also notes that the process of modernization of "Armenian  Nuclear Power Plant" CJSC has significantly increased the station's  consumption for repayment and maintenance of soft loans received  under the guarantee of the Government of the Republic of Armenia.   Thus, PSRC will consider the following proposals: Do not change  tariffs to socially disadvantaged individuals (11% of the number of  resident subscribers); to increase tariffs by 1.5 AMD / kWh  (including VAT) for residents consuming up to 200 kWh per month (55%  of resident subscribers); to increase tariffs by 3.5 AMD / kWh   (including VAT) for residents with a monthly consumption of 201 -  400 kWh (25% of the total number of resident subscribers), and to  increase the tariff by 5.5 AMD / kWh (including VAT)for other  consumers