ARMENIA'S ENERGY SECTOR IN CRISIS

11:53 * 10.04.15
http://www.tert.am/en/news/2015/04/10/mesrobian/1642163

Management expert Harutyun Mesrobyan believes that mismanagement is
the cause of the crisis in Armenia's energy sector.

"Villagers use bricks of dry dung as fuel, they do not use gas. It
means the energy sector is in crisis and the money receipts are
decreasing. Consumption is decreasing in all the sectors because
greedy policy always has such consequences," Mr Mesrobyan said.

As a management expert he point out an approach, that is, a result.

Only when results are produced, the question of their cost is raised.

No results mean a failure. And people are indignant at the quality
of gas services and cost of gas supply.

The gas price for consumers is about twice as high as the supply
price. No country, including European countries, as well as Georgia,
Belarus and Ukraine, is practicing it.

"I often hear about gas losses reaching 7-8 percent, whereas they are
3-4 percent in other countries, which is part of the production cost.

The question is: what is the cause of such losses?"

As to his opinion of the purchase of gas for Russian rubles, Mr
Mesrobyan said:

"Self-respecting countries prefer not quoting in USD terms. As to the
USD crisis and the international financial crisis, it creates problems,
and many businesses are seeking to leave the USD zone.

"We have had a number of problems. One of the facts is gas consumption
decreasing year by year. If you sell something at a very high price,
people try alternatives," Mr Mesrobyan said.

Speaking Iranian gas transit through Armenia, he said:

"Armenia has for a long period been a transit country, including
railway communication. Armenia's problem is that a very bad and
uncompetitive state government system, which causes many more problems
than produces results."