Water tariff in Armenia to fall 2.2% starting July 21 2013

  Water supply tariff in Yerevan will fall 2.2% from the current 174.059 drams per cu m inclusive of VAT to 170.26 drams, the Public Services Regulatory Committee adopted a relevant decision, Friday.

Introducing the new tariff Head of the PSRC Department for Tariffs Garegin Baghramyan said it will apply to Yerevan, Ararat, Aragatsotn, and Kotayk regions. Yerevan Djur CJSC applied to the Committee for revision of the tariff for 2013-2014. It is noteworthy that the company offered reducing the tariff to 166.044 drams. Baghramyan said that under the rental agreement, the tariff must be revised and reduced every year till 2016.  The tariff depends on four factors: inflation. Electric power tariff, the AMD/USD rate, and water consumption volumes. He said that the tariff could be higher, but for the rise in the electric power tariff on July 7 2013. He said that the basic water tariff in 2016 must be 90 AMD under the contract, but given the above four factors, the tariff may be different. The new tariff - 170.26 AMD per cu m - is a single tariff for drinking water, sewage and drainage.

To recall, Yerevan Djur CJSC has been managing the water supply and drainage services since June 1 2006. The company, part of Veolia Environment Group, was selected on the tender basis. The company's activity is regulated by a 10-year rental contract signed by the Government of Armenia in Dec 14 2005.