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Lower Electric Energy Price 'Theoretically Possible' In Armenia - Ex

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  • Lower Electric Energy Price 'Theoretically Possible' In Armenia - Ex

    LOWER ELECTRIC ENERGY PRICE 'THEORETICALLY POSSIBLE' IN ARMENIA - EX-PREMIER

    tert.am
    24.12.12

    As far as he was informed of Armenia's energy sector 15 years ago,
    Armenia's ex-premier Hrant Bagratyan can say that, with political
    will, reducing the electric energy price is theoretically possible
    in Armenia.

    "I do not know if there is such a possibility as it involves energy
    losses and calculation methods. The methods are said to have been
    changed and losses artificially reduced. But I get the information
    on huge losses," Mr Bagratyan told Tert.am.

    With respect to the Georgian government's intention to reduce the
    electric energy price by 25% from January 1, 2013, Mr Bagratyan said:
    "That is, with technical progress and financial discipline, losses
    can significantly be reduced, which will make it possible to reduce
    energy prices as well.

    The opposition MP can only speculate on what has happened in Georgia.

    "May be, Georgians have reached an agreement with Abkhazia and can
    now use Inguri Hydro," he said.

    Another factor is higher consumption of energy by Armenia's industrial
    sector. Also, the share of Armenia's mining industry, which consumes
    more energy than construction, is larger now.

    "So electric energy production may cause a reduction is the cost of
    production. Moreover, the construction of an electric power plant
    applying up-to-date technologies, as well as of the Yerevan thermal
    power plant, is under way, which may cause reduction in the cost of
    production," Mr Bagratyan said.

    The economist Vahagn Khachatryan, a member of the opposition bloc
    Armenian National Congress (ANC), told Tert.am that the People v.

    ArmRusGasprom claim indicated that the electric power supplied
    from Armenia's border to Yerevan and other regions will be twice
    as expensive.

    With respect to gas, he said that thermal power plants produce from
    40 to 60-670 percent of energy. "Reducing the electric energy price
    is possible," Mr Khachatryan said.

    However, he cannot say if the electric energy price can be reduced 25
    or even ten percent in Armenia. "But I can say for sure that Armenia's
    citizens must not pay AMD 132,000 for 1,000 cubic meters of gas,"
    Mr Khachatryan said.

    He believes the gas price should at least be 20% lower.

    Vardan Bostanjyan, an ex-member of the Prosperous Armenia Party
    (PAP) parliamentary group, considers the issue of gas price from a
    different aspect.

    "At present Georgia receives gas at about US $400 per 1,000 cubic
    meters. We are receiving gas at US $244. Although reduced, their
    price will not be lower than in Armenia now," Mr Bostanjyan said.

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