Chairman of Armenia’s Public Services Regulatory Commission (PSRC) commented on the financial deficit of the Electric Networks of Armenia (ENA) Company leading to a hike in energy tariffs, Aysor.am reported.

"The ENA financial deficit is due to the fact that after a repair one of the units of Armenian Nuclear Power Plant was relaunched with an 88-day delay, so the lack of cheap electricity was covered through expensive electricity produced by the Hrazdan Thermal Power Plant (TPP)," Robert Nazaryan said today, June 17 during hearings on the review of electricity tariffs initiated by the parliament’s Standing Committee on Economic Affairs.

At the hearing, the Republican Party of Armenia faction member, Chairman of the Standing Committee on State and Legal Affairs Hovhannes Sahakyan asked Nazaryan to explain why wasn’t cheap electricity bought from Yerevan Thermal Power Plant instead of expensive power at Hrazdan TPP.

“We lacked 300 million kwh for 88 days, but we could not use power from Yerevan Thermal Power Plant because it had no reserves, while Hrazdan TPP had a reserve and could produce electricity for the whole territory of Armenia,” Nazaryan replied.

For her part, the secretary of Prosperous Armenia faction Naira Zohrbyan said it would be fair if the hearing was attended by representatives of those companies whose poor management makes society discuss the electricity tariff rise from August 1.

“Tell us at what price ENA was selling electricity, what investments ENA promised to make over these years, how much was invested, eventually, if masochists agreeing to work at zero profit are employed by those companies,” Zohrabyan said.

“Please tell why should the consumer – the Armenian citizen repay that sum because someone’s of poor management,” she added.

Nazaryan further reminded those present that in 2002, ENA was sold for $40 million. Following the sale, until 2006-2007, ENA did not make investments. Then the company owner changed. Since 2007, investments of AMD 80 billion were made.

The majority of investments were aimed at ensuring uninterrupted power supply and reducing power cuts to the time indicated in the license, that is, for no longer than 2 hours.

“The rise in tariffs is not caused by poor management, but rather by wrong calculations. All these companies operate at a zero or little profit,” the PSRC chairman said, pledging no increase of electricity tariffs for next year.