Monday, July 27 2015 12:44

The Public Services Regulatory Commission (PSRC) is inviting large international advisory companies to take part in assessment of Armenia's energy system and elaboration of a strategic program for 2016-2036. The press office of the Commission has told ArmInfo that the PSRC took the relevant decision on July 27 with due regard for the June 27 statement of the Armenian President, who stressed the need to enhance the public confidence in the PSRC's activities. 

The PSRC has set up a working group to send invitations to 5 international advisory companies within a day. On receiving the relevant proposals, the working group is to sum up them within 3 days and to present the results to the Armenian Government.  

The key goal of involving the advisory companies in the process is to receive substantiated answers to two important questions: how much grounded the rise in electricity tariffs is and what threatens the energy system if the tariffs remain unchanged.     

An advisory company is to analyze the energy system, study the key components of the tariff structure, assess the consequences of the unchanged tariffs, etc.    Afterwards the advisory company is to prepare an in-depth review of several possible options of tariff reduction, comparing the international and regional scenarios, and to present a list of the priority steps within the short-term outlook.    

Upon completion of the specified phases, the advisory company may be involved in the process of elaboration of a long-term strategic program and provision of advisory services given the need to adjust the results of the company's analysis to the program of strategic development of Armenia's energy system for 2016-2036.  

To note, on June 17 the Public Services Regulatory Commission took a decision to the electric power tariffs by 6.93 AMD starting from August 1. As a result, the daytime tariff for the ultimate consumers will rise from the current 41.85 AMD per 1kWh to 48.78 AMD, and the nighttime tariff will grow from 31.85 AMD to 38.78 AMD per 1 kWh (including VAT). ENA CJSC had insisted on 17 AMD rise in the tariffs because of the company's debts. This decision has sparked public protests in the country.  The decision even angered the political and public organizations and the opposition forces of Armenia that blame ENA for mismanagement.  The Company, in turn, does not guarantee uninterrupted power supply to the country, unless the power rate is increased by 17 AMD. On June 27, Armenian President Serzh Sargsyan said that the Armenian Government would assume the burden of the raised tariffs until the ENA audit was over. He also said that the ENA might be nationalized. For his part, David Harutyunyan, Minister-Head of the Armenian Government Administration, said that the audit at the ENA might last for 3-6 months. ENA's total debt is about 150 bln AMD