Ministry official lauds decision not to cover electricity price hike for big businesses
With the aim of easing the burden of increased electricity prices approved by the Public Services Regulatory Commission (PSRC), the Government of Armenia will subsidize costs for residents and small businesses, Boris Gyulumyan, Head of the Finance and Economy Department of the Ministry of Energy and Natural Resources told reporters on Sept. 23. After summarizing the data of August, the Russian-managed Electric Networks of Armenia CJSC (ENA) submitted to the Ministry a reference on the actual number of consumers, the amount of consumed electricity and subsidy. Based on the report, the Ministry has applied to the Government with a proposal,” he said adding that the government will soon publish a decision that indicates the source of subsidizing the increased electricity tariffs. At the same time, Mr Gyulumyan assured media representatives that the process will continue in the coming months Asked whether the subsidy is justified if it does not cover the costs of energy consumed by large enterprises, the Ministry official said, “I shall not answer your question because it is beyond the jurisdictions of our Ministry but I can assure you that it was a fair decision, otherwise you would ask why large companies are subsidized at the expense of state funds." Mr Gyulumyan also declined to answer questions about ENA’s sale. The new electricity tariffs came into effect in Armenia on August 1.
