"Electric Networks Of Armenia" Not Planning To Raise Prices

"ELECTRIC NETWORKS OF ARMENIA" NOT PLANNING TO RAISE PRICES

ARKA
July 28

Electric Networks of Armenia is not planning to apply to the Public
Services Regulatory Commission for raising the electricity prices for
end users in the country, the General Director of the Electric Networks
of Armenian closed joint stock company Yevgeniy Gladunchik said.

"We are not going to increase the prices even if the Russian natural
gas becomes more expensive for Armenia," he told a press conference.

In 2011 "Gasprom" holding is to start supplying gas to Armenia
at European prices. The Armenian side reached an agreement for
a mid-term contract to have a gradual rise in prices bearing in
mind the high level of strategic partnership and the strengthening
of Gasprom’s positions in Armenia. In April 2006 the price for the
Russian natural gas supplied to Armenia was raised from $56 to $110
per 1,000 cubic meters.

The current electricity is 25 Drams (about 8.3 U.S. cents) in daytime
(from 7:00 to 23:00) and 15Drams (about 5 cents) at night in Armenia.

According to Gladunchik, the price is high even now – raising it may
make it difficult to collect bills against energy consumed. "We are
not interested in increasing the tariffs," the General Director.

Russian INTER RAO EES holds 100% of the shares of "Electric Networks
of Armenia" CJSC.20Distribution and sale of electricity is the main
activity of the company. The company provides services to approximately
913,000 consumers.