RUSSIAN GAS IMPORT TARIFF FOR ARMENIA TO RISE 16.8% STARTING APRIL 2010

Arminfo
2009-11-06 14:16:00

ArmInfo. Starting April 2010, import of natural gas to Armenia will
cost $180 per 1000 cu meters versus the present $154, Robert Nazaryan,
Chairman of the Public Services Regulatory Commission (PSRC) told
media on Friday.

He said Armenia has agreed to reduce the tariff by $20 for the next
year i.e. to $180 instead of the earlier announced $200 per 1000 cu
meter. He explained that rise of the import tariff will result in the
growth of internal tariffs of gas for the population and enterprises.

The exclusive supplier of natural gas to Armenia ArmRusgasprom CJSC
will apply to PSRC for revision of the internal prices of gas till
the end of January 2010, Nazaryan said. Electricity tariff will rise
simultaneously. "Even if the power generating companies did not apply
to the Commission for revision of tariffs, we will change the tariffs
in order the generating companies avoid losses," PSRC Chairman said.

Thermal power plants ensure 24-25% of total power generation in the
country, and these plants are gas consumers. R. Nazaryan said that
in 2010 the new modern power unit of Yerevan TPP will be put into
exploitation which is twice as effective as the existing plants. The
fifth power unit of Hrazdan TPP will be put into exploitation in 2011,
he said. (Ed. It was reported earlier that Hrazdan-5 would be put
into exploitation in 2010).

Since April 1 2009, import of natural as to Armenia grew in price 40%
to $154 per 1000 cu meters. As a result, the tariff grew 40.2% to $215
per 1000 cu meters for industrial enterprises (consumers over 10000
cu meters of gas monthly) versus the previous $153.26. Tariff for the
consumers using up to 10,000 c/m of natural gas monthly (mainly the
population) grew from the present 84,000 drams per 1,000 c/m inclusive
of VAT to 969,000 thousand drams inclusive of VAT (a 14.2% growth).