ELECTRICAL NETWORKS OF ARMENIA PROMISES 8.4 BILLION DRAMS INVESTMENT THIS YEAR INTO UPGRADING OF SYSTEM

YEREVAN, February 9. / ARKA /. The Electric Networks of Armenia company
has pledged to invest 8.4 billion drams in 2015 into upgrading the
facility, the Public Services Regulatory Commission (PSRC) said today,
citing the company’s investment program.

Particularly, the company will spend 2 billion drams on maintaining the
current frequency of outages, on raising the safety of the facility
and replacement of outdated equipment. Another 5 billion drams are
to be spent on connecting new subscribers to the power grid and
implementation of special projects.

According to the ministry of energy and natural resources, the
Electric Networks of Armenia has $220 million in outstanding debts to
local banks. The Russian-owned company blames the current situation
on higher than planned losses (by 2 percent) that translates into
5 billion drams annually. Besides, it has to buy more expensive
electricity from thermal power plants because hydropower plants do
not operate at their full capacity.

Citing this ministry of energy and natural resources argues that the
current tariffs do not reflect the real costs of power generating
companies. It says it has developed a methodology for reduction of
losses and improving the efficiency of the system, which will allow
to reduce losses by 2% in the next two years.

In 2013 PSRC allowed the company to raise the energy price by
27 percent, ‘because of the increased cost of Russian natural
gas’, which is used to generates more than one-third of Armenia’s
electricity. The price went up by another 10 percent in July 2014,
‘to help the company to end mounting financial losses,’ according to
PSRC . ($ 1 – 477.46 drams). -0–