YEREVAN. – The energy system of Armenia is greatly dependent on Russia, said economist Ashot Yeghiazaryan, at a press conference on Thursday.
“As long as Armenia is a member in the [Russia-led] EEU [i.e. the Eurasian Economic Union], we can’t solve economic, or other problems,” noted Yeghiazaryan.
The economist stated that there are major challenges in the country’s energy system and major investments are needed, and this is possible through cooperation with Western countries, but this is ruled out within the EEU.
Ashot Yeghiazaryan noted that Armenia is unable to make its own respective decisions, and it has to be subjected to the common interests of the EEU.
He also informed that a single energy market is envisioned within the EEU and, in all likelihood, this market will function in 2019.
As per the economist, however, nationalization of the Electric Networks of Armenia (ENA) Company—which supplies electricity to Armenia’s consumers—is unrealistic.
“The ENA really should be given to management companies that have a technological capacity and financial means,” said the expert. “But we have no alternative, since we are an EEU member.”
Ashot Yeghiazaryan added that the ENA should be nationalized and given to a company that carries out an effective Western management.
On June 22, numerous people—led by the “No to Plunder” initiative—staged a protest at Baghramyan Avenue, and demanded the revoking of the decision to raise the price of electricity in the country. In the morning of June 23, however, the police forcibly dispersed this sit-in. Since the evening of the same day, however, the demonstrators have resumed the sit-in at the avenue. But on June 28—and following President Serzh Sargsyan’s statement—the “No to Plunder” members and supporters went to Liberty Square, whereas the majority stayed at Baghramyan Avenue.
Despite numerous protests, the Public Services Regulatory Commission recently increased the price of electricity in Armenia by 6.93 drams—instead of 17 drams, proposed by the Electric Networks of Armenia (ENA) Company—, per cubic meter, and this decision will take effect on August 1. But the decision is expected to be followed by an increase in the prices of numerous products and services in the country.
President Sargsyan, however, stated that the government will cover this price hike until an audit is conducted at the ENA, which supplies electricity to the country’s residents. Sargsyan also said he does not rule out returning the company to the Armenian government and transferring it to competitive management, if the audit shows that the aforesaid increase in electricity prices is unjustified.
