Armenian regulator turns down ENA's application to cut electricity prices
YEREVAN, October 29. /ARKA/. On Wednesday, Armenia's Public Services Regulatory Commission (PSRC) addressed a statement from Electric Networks of Armenia (ENA) CJSC regarding the rejection of the company's application to lower electricity prices effective August 1, 2025.
ENA submitted its proposal to adjust the prices to the PSRC on June 6, 2025. The proposal suggested utilizing an additional benefit of 3.6 billion drams, which was derived from the discrepancy between planned and actual electricity balance indicators over a six-month timeframe, for the purpose of reducing prices.
Additionally, it aimed to factor in 12 billion drams of investments made in the preceding six months into the calculations, however, the PSRC emphasizes that ENA's proposal did not intend to lower prices for consumers.
"This is demonstrated by the previously mentioned proposal to decrease tariffs through one factor while increasing them through another, as well as the justification provided in the ENA letter for maintaining the financial metrics outlined in the loan agreements," the regulator asserts.
The PSRC contends that if the identified additional benefit of 3.6 billion drams, generated over six months due to the variance between planned and actual electricity balance indicators, had a downward impact on tariffs of approximately 0.5 drams/kWh, then with ENA's proposed investment of 12 billion drams, the cumulative downward effect of both factors would only be around 0.2 drams/kWh.
Consequently, the Commission indicated that a tariff reduction of merely 0.2 drams effective from August 1, 2025 (i.e., prior to the conclusion of the tariff year) would be unwarranted, and a subsequent reduction six months later would pose a considerable risk of additional tariff hikes.
The regulator observes that the formation of tariffs is also affected by various other factors, which are comprehensively evaluated at the year's end and can exert both positive and negative influences. Thus, the PSRC deems it suitable to adjust the tariffs of electricity system companies at the conclusion of the year, based on their annual financial and economic results.
During a press briefing on Wednesday, former Director General of ENA, David Ghazinyan, revealed that on August 6, 2025, a notification was submitted to the Public Services Regulatory Commission (PSRC) expressing the intention to utilize the additional 3.6 billion drams accrued over the preceding six months to reduce electricity tariffs. This amount was not the 0.5 drams/kWh as indicated by the PSRC, but rather a significantly larger reduction—approximately 1 dram.
He further remarked that the increase of 12 billion drams in investment did not suggest any alterations to the tariffs.
"I officially declare that Tashir Capital (a subsidiary of Tashir Group) is advocating for a prompt reduction in tariffs, solely funded by its own profits and to circumvent political and electoral maneuvers (on the part of the state manager - ed.)," Ghazinyan asserted.
He expressed his concerns that the authorities might attempt to announce a tariff reduction effective February 1, 2026, for electoral purposes (in anticipation of the parliamentary elections in June 2026), labeling it as their own accomplishment. -0-
