Remarkable Steps by the Armenian Government to Reduce Energy Tariffs
22 June, 2018

Electricity Consumption:

After discussions with Prime Minister Nikol Pashinyan, Tashir Group of Companies has decided to provide partial compensation for energy consumption to socially disadvantaged families in the amount of ADM 10 for each kWh of electricity.

According to a statement by the company, the compensation will be provided for a monthly threshold of up to 250 kWh.

The subsidy, according to Tashir, will be allocated from the company's own funds and is set to cover the 25-30% of energy costs of low-income families.

Armenian citizens now pay 44.98 drams per 1 kW of energy during the day and 34.98 drams at night. Reduced tariffs - 40 and 30 drams, respectively - were introduced for socially disadvantaged families before.

Natural Gas Consumption:

Tariffs for natural gas will be reduced for socially disadvantaged families, Gazprom Armenia said in a statement on Wednesday, June 20.

In the period between August 1, 2018 and August 1, 2019, the families in question who consume up to 600 cubic meters of natural gas annually, will pay AMD 80 for each cubic meter, which is by 20% less than the AMD 100 they used to pay before.

Gazprom thus sets the price for natural gas lower than the tariffs set by the Public Services Regulatory Commission (PSRC) of Armenia.

At a recent Cabinet session, Minister of Energy Infrastructures and Natural Resources Artur Grigoryan said there was a possibility of reducing the gas price for low-income families by 10%.

Discussions on reducing water tariffs for the same group of families are currently underway.

Water Consumption:

Water tariffs may be reduced for low-income families in Armenia; note that the natural gas price on border remain unchanged - $150 per 1,000 cubic meters. 

The issue was discussed at a meeting of Minister of Energy Infrastructures and Natural Resources Artur Grigoryan and a Viola Group representative.

Prospective projects that the company may be implementing in the country were also high on the agenda.

According to a statement from the Energy Ministry, the sides expressed readiness to continue collaborating with each other in order to provide the population with quality services and improve the water supply.

The New Cabinet Decisions:
After the Velvet Revolution, the cabinet is working hard to reduce the tariffs and to fight the corruptions related to the energy sector.

Families with small incomes will pay less for water as well. Minister of Energy Infrastructure and Natural Resources of Armenia Artur Grigoryan said that negotiations are underway to reduce tariffs for running water.

Thus, approximately 120 thousand families will pay less for gas, water and electricity.

Prime Minister of Armenia Nikol Pashinyan charged his government to find whether an even greater reduction in tariffs is possible:

"This is good, but further discussions are needed. In particular, it is necessary to understand whether there are corruption risks with Electric Grids and Gazprom - Armenia companies."

Previously, Pashinyan also touched upon the issue of reducing gas tariffs. He said that Russia sells gas to Armenia at fairly low prices, but ordinary consumers do not feel it. Pashinyan called this an "intra - Armenian" issue which he plans to tackle:

"At the border, Armenia receives cheap gas from Russia, but the gas price doubles between the border and the consumer's house. We must discuss and understand this problem inside Armenia. This does not concern our relations with Russia... The question may be related to inefficient management or even corruption."

At the same time, Armenia hopes to receive an even more substantial discount on Russian gas, Pashinyan says.

"Of course, we hope to get cheaper gas. We understand that this is an exclusive price for Armenia. But we would like it to be more exclusive. We will discuss these issues, and I hope that we will succeed," the Prime Minister said.

Source: -

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