TARIFF FOR DRINKING WATER IN YEREVAN NOT TO RISE TILL 2009

ArmInfo
2007-05-16 13:40:00

Today, the Public Services Regulatory Commission of Armenia approved
the application of "Yerevan Jur" CJSC ("Yerevan Water") according to
which the tariff for drinking water in Yerevan will not rise till 2009.

Taking into account the inflation, the currency rate fluctuations,
the electric energy price changes and the volumes of water small
wholesale in 2006, the "Yerevan Jur" proposed the Commission to
increase the base tariff by 7,6 drams without VAT starting July 1,
2009. However, the Commission specialists have cleared up that the
consumers were supplied not 59,83 mln cub m of water in 2006, as
the Company presented, but by 4,73 mln cub m more. In view of this,
the Commission has revised the application of the "Yerevan Jur" and
resolved to increase the base tariff for drinking water in Yerevan
by 3 drams, without VAT, to 132 drams per 1 cub m, starting July 1,
2009. The base tariff sizes are fixed in a lease signed between the
General des Eaux French Company, that controls the "Yerevan Jur"
CJSC, and the Armenian Government at the end, 2005. The tariff will
gradually reduce, within 10 years, from the present 172,8 drams per
1 cub m of water to 90 drams in 2015.

According to Director of the "Yerevan Jur" Serge Popoff, the Company
decided to increase the base tariff in 2009 as it is high enough
now. He refused to present any financial, investment or technical
indicators of the Company and said all the data will be ashortly
declared. Meanwhile, by estimations of specialists, the drinking
water consumption by Yerevan residents reduced during 2006 because
of the tariff increase last year, the water losses increased, while
the water supply schedule has not been improved.