The Electric Networks of Armenia (ENA) CJSC’s losses, due to tariff regulation shortcomings, have increased by 8 percent and amounted 10.7 billion drams (approx. US$22,537,509), in 2014 alone.

Member of the Russian state-owned company Inter RAO UES Management Board, Ilnar Mirsiyapov, stated the abovementioned.

“The current [electricity] tariff regulation does not guarantee the profits of the ENA, and it results in chronic losses,” Mirsiyapov said explaining that the ENA’s tariff revenue has dropped from 50 percent to 23 percent in the last five years.

“And 73 percent of the tariff increase goes to the other electrical energy enterprises of the republic [of Armenia],” TASS news agency of Russia quoted the Inter RAO UES Management Board member as saying.

Mirsiyapov added that the ENA assumes the main risks.

“As a result, the ENA is forced to taken on a loan, which further complicates the situation” said Ilnar Mirsiyapov. “The negative trend continues in 2015.”

Despite numerous protests, the Public Services Regulatory Commission of Armenia recently increased the price of electricity in Armenia by 6.93 drams—instead of 17 drams, proposed by the ENA—, 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, and whose proprietor is the Russian state-owned Inter RAO UES Company. Sargsyan also said he does not rule out returning ENA to the Armenian government and transferring it to competitive management, if the audit shows that the aforesaid increase in electricity prices is unjustified.