Thursday, March 28 2024 14:18
Naira Badalian

Water tariff to not change in Armenia in 2024 at expense of subsidies  from state treasury

Water tariff to not change in Armenia in 2024 at expense of subsidies  from state treasury

ArmInfo.The Armenian authorities will compensate for the increase in water tariffs in 2024 at the expense of the state treasury. O On March 28, the Cabinet of Ministers approved the decision to allocate AMD 1.1 billion to Veolia Djur, the unified water supply operator in Armenia (as was done in 2023), which will allow the tariff to remain at the same level.

On November 29, 2023, the Public Services Regulatory Commission  (PSRC) of Armenia adopted a decision according to which the price of  the services of Veolia Djur CJSC for the supply of drinking water and  drainage (wastewater treatment) remained unchanged in 2024 for  socially vulnerable segments of the population - 180 drams, and  205,992 drams for other customers. At the same time, as noted,  customers will continue to pay 200.47 drams per cubic meter, as  before (from January 1, 2023). "Based on the results of preliminary  discussions, the subsidy will be continued, and consumers will  continue to pay the same amount - 200.47 drams in 2024," the  Regulator said in a statement.

"The Government of Armenia, through a corresponding subsidy,  neutralizes the increase in tariffs for consumers of retail services  for the supply of drinking water and drainage (wastewater treatment)  with the exception of consumers considered socially vulnerable  families. As a result, the price of drinking water for consumers will  not increase in 2024 ," noted in today's government decision.

Since January 1, 2017,, the new single water operator - the French  "Veolia Djur" (a subsidiary of the French Veolia Enviroment SA), took  over the management of the property of five existing operators for a  period of 15 years: "Yerevan-Jur", "Armvodokanal", "Shirak Vodokanal"  ", "Lori Vodokanal" and "Nor Akunk". At the same time, from January  1, 2017, a unified water tariff was established across the republic,  and it was increased from 170.256 drams per 1 cubic meter of water to  180 drams for residents of Yerevan, including VAT. 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 used to improve the system and expand the service  network. After the announcement of the tender results, the company  presented basic tariffs for 15 years, which are adjusted based on 3  factors - depending on the electricity tariff, inflation rate, and  the volume of retail supplies in the water supply sector. From  January 1, 2023, the water tariff for socially vulnerable categories  of consumers remained at the level of 180 drams per 1 cubic meter,  and for all others the tariff increased by approximately 8 drams per  1 cubic meter - from 200.47 drams to 208.419 drams per cubic meter  (including VAT). On March 16, 2023, the authorities decided to  compensate the increase in the water tariff in 2023 at the expense of  the state treasury.