Audit in electric networks of Armenia not to prevent electricity price hikes - economist
He said the country's energy system is in a desperate state – it is not competitive and price hikes are inevitable here.
The economist also said that the Electric Networks and the government's explanation of the price increase is not convincing and that the audit was initiated to play for time and to ease the current public tension.
He said Armenia's economy directly depends on Russia's economy, and it is known that Russia's energy system plunged into crisis
«I don't deny that Russia was able to receive a relatively cheap electric energy from its own energy resources and develop its industry, and this made Russia competitive at the global market,» he said adding that in recent years the Russian economy sharply worsened.
Yeghiazaryan thinks that electricity price rise threatens not only to Armenia, but also to Russia – things are far worse in Russia, and electric power prices will go 20 or 30% up already this year.
He found it difficult to guess from what sources the Armenian government intends to subsidize this price hike, since international financial organizations refuse to extend loans for repaying debts of the country's companies.
On June 17 Armenia’s Public Services Regulatory Commission (PSRC) formally raised the prices of electricity by 16.7 percent or 6.93 drams per one kWh.
The decision sparked a widespread public backlash in the country and Armenian citizens took to the streets in a protest against the increase.
In early morning on Tuesday, the police responded to the backlash by chasing away Armenian citizens who gathered in Baghramyan Avenue for protest.
Some 240 protesters were taken to police stations and released later and 25 were injured.
After that, the peaceful protest resumed with renewed vigor and demonstrators are in Baghramyan Avenue now despite Serzh Sargsyan’s statement that the burden created by the new price will be borne by the government until completion of the audit that was arranged at Sargsyan’s meeting with Maksim Sokolov, Russia’s transport minister.
The Electric Network of Armenia is a subsidiary of Russia's INTER RAO UES. The company enjoys the sole right to distribute electric power in Armenia. ---0----