Regulatory Authority Imposing 60-mln-AMD Fine on "Electric Networks of Armenia"

 During the July 8 meeting the Public Services Regulatory Commission of the Republic of Armenia took a decision to impose a 60-mln-AMD fine on "Electric Networks of Armenia" for a number of violations in the terms of schedule and connection of new consumers, as well as for demanding that consumers fully pay for being connected to the network through the terms of consumed energy. 

The meeting covered 14 complaints against the ENA both from individual and legal entities. By 11 decisions, the company has been fined by 5 mln AMD (about 10.5 thsd USD).

By another decision, the fine amounted up to 10 mln AMD (about 21 thsd USD). 

The company was previously to pay 75 mln AMD fine, however, PSRC reversed the fines by 3 more decisions. 

According to PSRC, ENA violated the schedule of consumers' connection to the network. Besides, the company demanded that declarants pay extra money for being connected to the network under the stipulation that they pay for consumed energy in the coming 5 years.  

The company conditions its actions by the financial squeeze, however, PSRC chairman Robert Nazaryan does not think such reasoning to be acceptable.  

During the meeting ENA attorneys made a motion that PSRC suspend the action for the Committee's administrative procedure term will run out on July 10. The attorneys accused PSRC on hindering them from making a clear version of he company's defence and presenting new evidences. 

However, the chairman was quick to respond to their accusations and said the company was "talking for buncombe".  He added that the company had a month to provide evidence. He truly doubts they will succeed in a day. 
ENA CEO Yebdeny Bibin has previously told ArmInfo of his discontent with the principles of network connection payment. The company suggested prepaying for electricity redeemed within several years according to the consumed amount of energy. This discharges the rates and provides a fairer consumption payment method. 

To note, on June 17 the Public Services Regulatory Commission raised the electric power tariffs by 6.9 AMD to about 50 AMD per 1 kWh.  ENA CJSC had insisted on 17 AMD rise in the rate 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. To recall, Deputy Minister of Energy and Natural Resources Iosif Isayan said that ENA CJSC borrowed USD 220 mln against the guarantee of the Armenian Government.  Consequently, if the company is unable to repay the loan, these obligations must be assumed by the taxpayers. "No to Plunder!" movement has been holding ralliues against the energy price hike since June 19. 

ENA CJSC is 100% subsidiary of Inter RAO UES OJSC with an exclusive license for transmission and distribution of electric power in the territory of Armenia. The company serves 967,000 consumers.