27.4% of Armenia`s energy supplies on competitive terms in Jan-Oct  2024

ArmInfo. As a result of the liberalization of the electricity market, 27.4% of all electricity sold in Armenia was sold on competitive terms in the first 10 months of this year. This was stated by the candidate for the chairman of  the Public Services Regulatory Commission (PSRC) of the Republic of  Armenia Mesrop Mesropyan from the rostrum of the National Assembly on  November 15. 

According to him, this means that large companies are already  entering the market themselves, where they make commercial purchases  by concluding contracts with electricity suppliers. Nevertheless, as  the candidate for the post of the head of the PSRC noted, there are  problems in the implementation of this reform program, since what is  written on paper is one thing, and the real situation in practice is  quite another. These problems, as Mesropyan noted, cannot be solved  in a short period of time, but it is very important that the authors  of the reforms learn about them not after the fact, but before the  issues arise, which allows them to be carried out in a continuous  mode.

The candidate reported that a draft law is in circulation, according  to which all those consumers who consume 10 million kWh of  electricity per year or more will not have the opportunity to choose  a supplier, but will enter the market themselves as a qualified  consumer. 

According to Mesropyan, this will solve a very important problem  related to the fact that one of the six electricity suppliers  occupies a monopoly position over the others, which is unacceptable  from the point of view of reforms. Let us recall that in February  2022, the liberalization of part of the energy market of Armenia was  launched. The guarantee of mandatory purchase of electricity,  previously provided by the state to small hydroelectric power plants  (for a period of 15 years), will not work under the new conditions. 

They will be free to join the electronic market trading platform and  trade in accordance with all trading rules. From May 1, 2022,  according to the amendments to the Law "On Energy", licenses will be  granted without quotas and corresponding state guarantees, but  according to a simpler scheme. Further, by connecting to the  electronic platform, these economic entities will be able to carry  out wholesale sales of the electricity they produce.  

Yerevan, November 15. ArmInfo, Alexander Avanesov. As a result of the  liberalization of the electricity market, 27.4% of all electricity  sold in Armenia was sold on competitive terms in the first 10 months  of this year. This was stated by the candidate for the chairman of  the Public Services Regulatory Commission (PSRC) of the Republic of  Armenia Mesrop Mesropyan from the rostrum of the National Assembly on  November 15. 

According to him, this means that large companies are already  entering the market themselves, where they make commercial purchases  by concluding contracts with electricity suppliers. Nevertheless, as  the candidate for the post of the head of the PSRC noted, there are  problems in the implementation of this reform program, since what is  written on paper is one thing, and the real situation in practice is  quite another. These problems, as Mesropyan noted, cannot be solved  in a short period of time, but it is very important that the authors  of the reforms learn about them not after the fact, but before the  issues arise, which allows them to be carried out in a continuous  mode.

The candidate reported that a draft law is in circulation, according  to which all those consumers who consume 10 million kWh of  electricity per year or more will not have the opportunity to choose  a supplier, but will enter the market themselves as a qualified  consumer. 

According to Mesropyan, this will solve a very important problem  related to the fact that one of the six electricity suppliers  occupies a monopoly position over the others, which is unacceptable  from the point of view of reforms. Let us recall that in February  2022, the liberalization of part of the energy market of Armenia was  launched. The guarantee of mandatory purchase of electricity,  previously provided by the state to small hydroelectric power plants  (for a period of 15 years), will not work under the new conditions. 

They will be free to join the electronic market trading platform and  trade in accordance with all trading rules. From May 1, 2022,  according to the amendments to the Law "On Energy", licenses will be  granted without quotas and corresponding state guarantees, but  according to a simpler scheme. Further, by connecting to the  electronic platform, these economic entities will be able to carry  out wholesale sales of the electricity they produce.