Deloitte and Touche CIS consulting firm completed the report of the 1st stage of advisory services at the Public Services Regulatory Commission (PSRC), RFE/RL Armenian Service reports.

“We analyzed the current situation in Armenia: the country’s sole energy supplier appeared on the brink of default, largely due to a gap between the system operator's forecasting and the load factor, a Deloitte and Touche statement reads. “Power generating companies had been affected by the financial deficit in the Electric Networks of Armenia, which in the short term would threaten the country's energy stability. Under such conditions, PSRC’s decision to increase tariffs, aimed at the stabilization of the situation and conservation of reliable power supply to consumers, is, from our perspective, justified.”

The electricity tariff hike came into effect in Armenia on August 1. Earlier, Electric Networks of Armenia (ENA) filed an application to Public Services Regulatory Commission of Armenia (PSRC) regarding an increase in electricity tariffs, a hike that the parliamentary opposition and civil society considered as unfounded and serving the interests of ENA. Until August 1, 2015 the daytime and night tariffs for population stood at AMD 41.85 and 31.85 per KWh, respectively. The ENA proposed raising the tariffs to AMD 58 and 48 respectively. However, the Commission only partially granted the ENA application on a rise in tariffs. The power tariffs in Armenia have increased by AMD 6.93 instead of 17.

Prime Minister Hovik Abrahamyan declared that an audit of the Electric Networks of Armenia (ENA) was to start in late August. The PM said the government will express its position after Deloitte & Touche CIS presents its findings. The company will provide consulting services to Armenia’s Public Services Regulatory Commission (PSRC) concerning the regulation of tariffs in energy sector.