WILL THE MONEY BE ENOUGH FOR SUBSIDIZING?

Lragir, Armenia
Nov 1 2006

ARG is likely to bid for increasing the tariff of natural gas. The
chief executive officer of the company Karen Karapetyan stated October
31 that he is not satisfied with the present tariff. But Karapetyan
reassured that the tariff for industries will increase.

Karen Karapetyan declined to say how much they are likely to increase
the tariff saying that they will tell when they offer the bid to the
Public Services Regulatory Commission.

The news reporters asked why, in that case, the Armenian government
assured that the tariff of gas would not grow for at least three
years. Karen Karapetyan said these statements were on the price of
gas on the border, in other words, the 110 dollars. It means that the
industries of Armenia will have to pay more. It is possible that the
government will lend a hand, which relieved the consequences of the
increase in the price of gas by using the money from the sale of the
fifth generating unit to subsidize gas. But it is foreseen for three
years, whereas when ARG increases the price of gas in the country,
it is natural that the estimations for subsidy are disrupted, and the
money may not be enough. Therefore, first the government had better
inform the enterprises whether it has more property to sell or they
have to think for themselves.

From: Emil Lazarian | Ararat NewsPress