ArmInfo. The process of determining the final gas tariff for consumers will be transparent, and open discussions will be held on the issue at the upcoming PSRC meetings, the Armenian Ministry of Territorial Administration and Infrastructures assured.
Yesterday, ArmInfo reported that Gazprom Armenia applied to the Public Services Regulatory Commission (PSRC) of the Republic of Armenia with a request to revise gas tariffs. The regulator has 80 days to consider the application, and if approved, the new tariff will come into force on April 1, 2022. It was noted that in accordance with the additional agreement signed between Gazprom Armenia CJSC and Gazprom Export LLC on the supply of natural gas to the Republic of Armenia dated October 29, 2021 for 2014-2021, from April 1, 2022, the actual price of natural gas supplied to the Republic of Armenia from the Russian Federation is set at $165 per thousand cubic meters with a net calorific value of 7900 kcal/m3 and $177.53 per thousand cubic meters with a net calorific value of 8500 kcal/cu.m. "At the same time, if the actual average monthly mass of the net calorific value of natural gas is higher or lower than 8500 kcal/m3, the price will change accordingly, in direct proportion to this change," the document says. Gazprom Armenia proposed both a single price for all consumer groups and a formula for calculating tariffs depending on the monthly adjustment of the actual gas calorific value. "Secretly from the public, political and professional circles, another gas agreement was signed, according to which, from April 1, 2022, the price of natural gas will increase both at the border and within the country," Economist Suren Parsyan, responsible for the economic research office of the ARF Dashnaktsutyun Bureau, wrote on his Facebook page, also stating the inevitability of the deepening of the social crisis due to the rise in gas prices.
Thus, responding to "contradictory and unfounded publications in the media" about the "secret gas agreement", and "in order to prevent the spread of manipulative comments and disinformation", the ministry in a widespread statement reports that the issue of gas prices at the border in 2022 is regulated by an additional agreement, concluded between Gazprom Armenia CJSC and Gazprom Export LLC back in 2013. According to the additional agreement, the gas price at the border in 2022 will remain unchanged. The specified additional agreement was signed on October 29, 2021. And according to the agreement of 2013, which is a public document, the parties agreed and approved the gas price adjustment formula based on the actual calorific value of gas, which will come into force on April 1, 2022.
The Ministry recalled that on December 23 the Government of Armenia approved a proposal to sign a protocol on amending the "Agreement between the Government of the Russian Federation and the Government of the Republic of Armenia on the conditions for the sale and purchase of shares and the further activities of ArmRosgazprom CJSC dated December 2, 2013." "This decision was published and posted on the official website of the Government of the Republic of Armenia in December 2021. At present, the Ministries of Territorial Administration and Infrastructure and Foreign Affairs of the Republic of Armenia have been instructed to organize the signing of the protocol," the report says.
It should be noted that, in its application, Gazprom Armenia, in particular, offers both a single price for all consumer groups and a formula for calculating tariffs depending on the monthly adjustment of the actual calorific value of gas. The proposed single weighted average tariff will be $282.6 per 1,000 cubic meters of gas for 8,500 kilocalories. In drams, this will amount to 135 thousand 649 drams (the current weighted average tariff is $266.71). That is, Gazprom Armenia proposes to increase the weighted average price by $15.89 (including VAT) per 1,000 cubic meters of gas by 8,500 kilocalories. If the energy value is below 8500 kilocalories per cubic meter, the price of gas will decrease proportionally, if it is higher, it will increase.
Meanwhile, head of PSRC Garegin Bagarmyan previously reported that in 2021 the energy value was 8,300 Kcal/cubic meters and more (up to 8,500 in some months). Referring to the recently reached agreement on maintaining the base gas price at the border for the next 10 years at $165, in return for which Armenia pledged to ensure the profitability of the Hrazdan-5 thermal power plant, owned by Gazprom Armenia, and increase the tariff for it so that the station receives an additional annual income of $31.79 million, Baghramyan said: "If our partners raise the issue of changing the tariff of $165, then we, in turn, will be able to change this $31.79 million."
