There are several factors that caused another rise in the electricity rate in Armenia: negligence of the Energy Ministry and inability of the Public Services Regulatory Committee to resist the pressure by Russian electricity generating companies. Head of the Union of Employers Gagik Makaryan made such statement talking to reporters, Monday.
He said that the Committee representatives motivate the raise in the electricity rate with the protracted repair of the Armenian NPP (88 days instead of the envisaged 24), which caused certain financial problems. "Why didn't the Ministry of Energy take timely measures to liquidate that problem. Why didn't it reckon with possible risks? It turns out that the population will have to pay for the negligence of the Ministry, which is inadmissible. The Russian factor is significant as well. Apparently, the decision to raise the tariff was made under certain pressure by Russian companies," Makaryan said.
According to him, the Committee's decision to raise the electric power tariff is a gross mistake even if we study just the economic component of the issue. "A higher electricity rate reduces competitive abilities of the local products, as households fail to plan their spending with all that it implies. The higher tariff affects also economic entities that fail to fulfill their agreements and contacts. We every time face price hikes, and every time we are unpleasantly surprised," Makaryan said.
To recall, Minister of Energy and Natural Resources of Armenia Yervand Zakharyan said in the parliament that the financial burden in the energy system is 18 billion drams (nearly $44 mln), which made the companies engaged in the field apply to the Public Services Regulatory Committee for a 10 % rise in the electricity rate. Head of the Committee Robert Nazaryan, in turn, told reporters that the tariff might be increased already in August. They plan to raise it by 3.8-4.3 drams.