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Official News

Thursday, 10 September 2015

PSRC-Coordinated Consulting Process Discussed

A Cabinet sitting was held today, chaired by Prime Minister Hovik Abrahamyan.

Before proceeding to the agenda, the Prime Minister asked Vice Prime Minister, Minister for International Economic Integration and Reforms Vache Gabrielyan and Minister of Energy and Natural Resources Yervand Zakharyan to report back progress in the Public Services Regulatory Commission-conducted consulting process.

Prime Minister Hovik Abrahamyan: Dear colleagues, as you may know, Deloitte Touche is conducting an advisory survey in cooperation with the Public Services Regulatory Commission. I would like to give the floor to the Vice Prime Minister to report back progress in this process.

Vice Prime Minister Vache Gabrielyan: Mr. Prime Minister, Deloitte Touche has already started the process. On Monday, meetings were held with PSRC experts and regulatory companies’ representatives. I have the contract, which features specific provisions to comply with in three stages.

The first stage should be completed by the end of September, the second stage – in late October and the third stage - in November. The following analysis is to be complete in the first stage: analysis of the whole production chain in 2010-2015, from producers to consumers, covering the energy balance, the PSRC-established tariffs, including applications and reasons for revision, revision frequency, mechanisms and regulatory change proposals submitted and analyzed by the Commission.

The following key items shall be subject to discussion: identification of reasons behind deviations from the projected figures due to market participants’ financial statements, electricity output and consumption levels, climate conditions and other unforeseen problems, such as the standstill in the operations of the nuclear power station, as well as the analysis of tariff review documentation provided by the companies.

Prime Minister Hovik Abrahamyan: Mr. Gabrielyan, shall we have the analysis of tariff change substantiations by the end of September?

Vice Prime Minister Vache Gabrielyan: Yes. In particular, the findings to be provided in the first stage shall focus on the pricing and the consistency in the Regulator’s assessment of tariffs set for 2015-2016.

Prime Minister Hovik Abrahamyan: Since we have an arrangement for the Government to pay the difference in prices for the population and SMEs pending the receipt of the findings, I would like the Minister of Energy and Natural Resources to report progress in work on identification of the amounts to be refunded.

Minister of Energy and Natural Resources Yervand Zakharyan: Mr. Prime Minister, the amounts due and the lists of SMEs and households with consumption levels less than 500 kW are being drafted at this point of time. The amounts to be settled will have been estimated by the end of this week, and compensation will be paid up next week through the twentieth day of this month.

Prime Minister Hovik Abrahamyan: All the work will be completed and the fees will be settled, indeed. But I believe that as much important is to inform the public about the whole process, since misleading information is being circulated that nothing has been done in this direction.

The Government has complied with all of its commitments in time and according to liabilities, and the public at large should be aware of this fact.
 

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