Today Public Services Regulatory Commission (PSRC) of Armenia approved the draft law on increase in electricity price under which starting from August 1, the tariff will make AMD 41.85 per kilowatt, instead of the previous tariff set at AMD 38, while the night rates will make AMD 31.85 instead of AMD 28.

As Mediamax reports, the Commission turned down the proposal of the five factions – Orinats Yerkir, Dashnaktsutyun, Heritage, Prosperous Armenia and ANC – as well as of Pubic Council and NGOs to defer the discussion.

PRSRC Chairman Robert Nazaryan said the PSRC has conducted a detailed study of the current situation in the electric energy system and has concluded it is important to raise the rates in order to ensure the system’s stable operation.

“If we manage to find back-up supplies allowing not to change the tariff, then we are ready to discuss those options before this decision come into effect on August 1”, said Robert Nazaryan.

In parallel with the session, “Against Increase in Electricity Price” initiative protested in front of the building of the Commission demanding to cancel the adoption of the decision.

Mediamax recalls that the statement disseminated by the Commission on June 4 read that for around two months the Commission has studied the 2014-2015 predictions presented by companies operating in the electric energy system made on the relevant expenditures and commitments required for licensed activities and found out that significant changes in factors affecting the outcomes of economic activities of those companies are expected in 2014-2015.

“Thus, relying on Points 5 and 6 of Article 22 of Armenian Law on Energy, the PSRC has started the review of tariffs of electricity production and services as well as of electricity sold to the end consumers. At the initial stage of assessment the Commission finds that additional AMD 20bln (without VAT) is required to ensure the financial stability of the electric energy system and to supply reliable and secure electricity to consumers. To cover the financial gap emerging in the companies it is planned to increase electricity prices for all consumer groups within AMD 3.8-4.3 kWh (VAT included)”, reads the statement disseminated by the Commission.