PUBLIC SERVICES REGULATORY COMMISSION RAISES ELECTRICITY PRICE IN ARMENIA

ARKA
March 5, 2009

YEREVAN, March 5. /ARKA/. Armenian Public Services Regulatory
Commission raised the price for electricity for consumers.

Under the Commission's decision, the price for electricity supplied
by "Electric Networks of Armenia" closed joint stock company is set
at 30Drams per kilowatt-hour in daytime (from 7:00 till 23:00hours)
instead of previous 25Drams per kilowatt-hour.

Nighttime (between 23:00 and 7:00) price for electricity is 20Drams
per kilowatt-hour against the previous 15Drams per kilowatt-hour. The
new prices come into force as from April 1 2009.

Head of price policy management department of the Commission Armen
Arshakyan said that the review of the electricity prices is initiated
by the Commission taking into account the rise in gas price and the
substantial changes in energy production by Armenian enterprises.

As from April 2009, gas price is to be 96,000Drams per 1,000 cubic
meters.

Among other crucial factors is 35% increase in price of atomic fuel
used in the Armenian Nuclear Power Plant (ANPP), Arshakyan said.

13bln Drams worth large-scale investments implemented in the country's
energy system in 2008 should be reflected in the prices and nullified
depreciation costs of enterprises with state share should be recovered,
he said.

He also pointed out that necessity occurred to replenish special
funds of the20ANPP on decommissioning.

Loan repayment schedules and currency rate fluctuations have also
been taken into account.

Electricity consumption by population averages 180 kilowatt-hour
monthly, hence the 5Drams increase will bring to additional
expenditures of 900Drams per month on average or about 11,000Drams
per year, Arshakyan said.

The Public Services Regulatory Commission also raised the process for
the other participants of the energy market in Armenia. Particularly,
the new price for electricity produced by the Armenian NPP is to be
3.6672Drams per kilowatt-hour, for that generated by Hrazdan heat
station 22.2036Drams per kilowatt-hour, by Yerevan heat station -
21.5172Drams per kilowatt-hour, by Vorotan Cascade hydro power plant -
0.5496Drams per kilowatt-hour, by International Energy Corporation
- 1.164Drams per kilowatt-hour, by Vayots-Dzor hydro power plant -
3.294Drams per kilowatt-hour.

Price for electricity distribution by "High-Voltage Electric Networks"
is set at 1.0692Drams per kilowatt-hour. Monthly fee for services
of the Operator of electric power systems is now 66.8883mln Drams,
service of the settlement center - 0 13.3449mln Drams monthly.

($1=305.83Drams).