Armenia`s electricity network situation carries risks for national  security - political scientist

ArmInfo.  The potential nationalization of the "Electric Networks of Armenia" goes against  the  current authorities' policy of liberalizing the electricity  market. Political scientist Vahe Davtyan discusses this in his  article.

The expert believes that  any mention of nationalization, especially  in a political context, contradicts the logic of liberalization.  "This is yet another indicator that Armenia is being managed in an  anti-systemic, "manual" mode. Like any large infrastructure company,  ENA also has numerous issues, which I have repeatedly publicly  stated. But first of all, I consider it unacceptable to use one of  the key institutions of the country's energy security for political  and opportunistic purposes. It is obvious that the possible  nationalization of the company will lead to an increase in tariffs in  Armenia. How will the government implement the investment program  necessary for the permanent modernization of the system? Of course,  by attracting credit funds from international institutions. This will  lead to an increase in the state debt, for servicing which the  government will have to increase tariffs," Vahe Davtyan emphasized. 

He noted that given the modest indicators of electricity consumption  in Armenia, the anti-industrial economy based on trade and services,  and the gradual reduction in electricity export opportunities, the  country's energy system is simply unable to achieve a level of  profitability that would allow it to service these loans  independently. Thus, the expert concluded, that what is happening  carries energy, economic and broader risks for national security.