Expert: Energy sector of Armenia may face a collapse and another energy rate increase will not be the last

Energy system of Armenia may face a collapse and another energy rate increase will not be the last, AshotYeghiazaryan, the economist, told ArmInfo. In his words, the electric power networks of Armenia "have become inefficient in view of their worn-out state. Solid investments in are needed in the field and the problem will not be settled just by selling ENA (Electric Networks of Armenia)."
Yeghiazaryan sees no positive shifts in the field for the near future. "The nuclear power plant may be suspended in future too. There are factors that prompted the increase of the electricity price and these factors still exist. Consequently, the electricity rate will be increased regularly," Yeghiazaryan said. He explained that the energy system of Armenia is generally not competitive: operation of infrastructures is not optimized, electric power is generated overwhelmingly from gas, and the nuclear power plant costs the country higher than water power engineering. In addition, the worn-out state of the energy system has made all the energy assets of the country inefficient. 
According to the economist, if the problem of investments in the generating capacities is not settled, it is senseless to speak of investments and modernization of ENA, and consequently, reduction of the technological and commercial losses in the system. "INTER RAO has withdrawn from the responsibility by selling ENA and receive extra-profits within the last years. Consequently, it is actually impossible to rehabilitate the energy system," the economist said for conclusion. 
To recall, on October 1, Armenia's Prime Minister Hovik Abramayan announced at the Armenian Government that Tashir Group kindly fulfilled the Government's request to purchase Armenia's energy assets from Inter RAO. Taking into account the fact that Tashir group owns "Cascade Energo Holding" energy company, which has a long-term experience and is one of the best companies in Russia, the Armenian Government has addressed the President of Tashir Group Samvel Karapetyan with such request, the prime minister said. Tashir Group held consultations within a short time and has already signed an agreement with Inter RAO on sale and purchase of electric energy assets in Armenia.  The Armenian Government and Public Service Regulatory Commission have already approved the deal.  Fulfilling the Government's request, Tashir committed itself to implement international best business practices into CJSC "Electric Networks of Armenia" and to hold down technological and commercial losses in the system during 5 years.  The parties have agreed that Electric Networks of Armenia and Hrazdan Thermal Power Plant will continue to meet all the liabilities. At the same time, as Abrahamyan noted, Samvel Karapetyan in order to support the people of Armenia has expressed readiness, on a parity basis with the Government of Armenia, to spend his own funds to compensate for the tariffs of electricity of the general public and small businesses till August 1, 2016. As Abrahamyan explained, "604 thousand from 766 889 users monthly consume 250KWh in average. The Armenian Government on a parity basis will compensate for the payments of this group of people, as well as will partly compensate for the payments of the small businesses that consume up to 500KWh.We express our gratitude to Mr. Samvel Karapetyan for this", Hovik Abrahamyan said. The rest of the citizens, who have financial capacities, will have to pay for the electricity in high rates taking into account the objective situation.