Gazprom has not still fixed final gas price for Armenia, but chain reaction has already began

Regnum, Russia
March 17 2006

On March 16, Hrazdan thermoelectric power plant (Armenia) addressed
to the Armenian Commission on Public Services Regulation, requesting
to recalculate tariff for produced energy. As a REGNUM correspondent
informs, in accordance with gas tariffs increasing, the electric
station suggested fixing price for domestic consumer of 21.36 drams
($4.7 cents) per kilowatt-hour instead of former 11.37 drams. The
tariff offered by Hrazdan electric station, increases by 90%, comparing
with he current one.

It should be reminded, that on April 10, average gas price for
domestic consumer totals $162.95 per 1000 cubic meters. For users,
consuming less then 10,000 cubic meters per month (for population),
tariff totals 90 drams ($20 cents) per cubic meter; for users,
consuming more then 10,000 cubic meters ~W $146.51. For population
gas tariff will rise by about 52.5%, for enterprises ~V by 85.2%.

Recalculation of gas tariffs for domestic consumer is caused by fact
that from April 1 price of gas, supplied from Russia, will nearly
duplicate ~V from $56 up to $110 per 1000 cubic meters. However,
the Russian holding granted Armenia a delay till April 1, and talks
between Yerevan and Moscow on the question still continue.

It should be reminded, that recently spokeswoman to Electroseti
Armenii JSC Margarita Grigoryan stated if Armenian Commission on Public
Services Regulation decided to increase tariffs for produced energy,
probably Electroseti Armenii JSC would address to the Commission
requesting to change tariffs for domestic consumer.

Part of gas expenditures totals 85% in energy prime cost, produced by
Hrazdan thermoelectric power station. It should be mentioned, that
Hrazdan TPS infrastructure was handed over to Russia, in accordance
with On Armenia~Rs Acquittance to Russia agreement between governments
of Armenia and Russia. Within of the framework of the scheme, the
whole stock of Hrazdan TPS was received by Russian side for $31
million. Also, Hrazdan TPS is the only one energy supplier from
Armenia to Georgia.

From: Emil Lazarian | Ararat NewsPress