Watchdog Approving ENA's 8.6 bln AMD Investment Project
On July 8 Public Services Regulatory Commission of the Republic of Armenia approved "Electric Networks of Armenia" CJSC's 8.6-bln-AMD (without VAT) investment project for 2015.
About 5 bln AMD is to be channeled for connecting new consumers and implementing special projects, 2 bln AMD - for maintaining the average frequency indicator and energy cut time, safety provision and substituting worn-out equipment. About 353.5 mln AMD is to be channeled for other investments that are envisaged for organizing the exploitation of distributive networks, 545.3 mln AMD - uncontemplated investments, 344.3 mln - improvement of cost accounting system, 316.2 mln AMD - reduction of average annual frequency and power overvoltage time in electric networks.
The company committed to submit the 2016-2018 investment project by October 15, 2015. PSRC reversed the decision taken on the ENA's 2014-2018 investment project.
During the meeting the "ENA" CEO said the company was ready to take up the implementation of the 20145 project and would bend every effort to meet the deadline. However, he mentioned the deadline was too close - the end of 2015 with 6 months remaining to carry out the project.
To note, on June 17 the Public Services Regulatory Commission raised the electric power tariffs by 6.9 AMD to about 50 AMD per 1 kWh. ENA CJSC had insisted on 17 AMD rise in the rate because of the company's debts. This decision has sparked public protests in the country. The decision even angered the political and public organizations and the opposition forces of Armenia that blame ENA for mismanagement. The Company, in turn, does not guarantee uninterrupted power supply to the country, unless the power rate is increased by 17 AMD. To recall, Deputy Minister of Energy and Natural Resources Iosif Isayan said that ENA CJSC borrowed USD 220 mln against the guarantee of the Armenian Government. Consequently, if the company is unable to repay the loan, these obligations must be assumed by the taxpayers. "No to Plunder!" movement has been holding ralliues against the energy price hike since June 19. On June 27, Armenian President Serzh Sargsyan said that the Armenian Government would bear the burden of the raised tariffs until the ENA audit was over. He also said that the ENA might be nationalized. For his part, David Harutyunyan, Minister-Head of the Armenian Government Administration, said that the audit at the ENA might last for 3-6 months.
ENA CJSC is 100% subsidiary of Inter RAO UES OJSC with an exclusive license for transmission and distribution of electric power in the territory of Armenia. The company serves 967,000 consumers.