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The Program on Electricity Market Liberalization of Armenia may end in 2019.

Head of the Tariff Department of the Public Services Regulatory Commission (PSRC), Garegin Baghramyan, told the aforementioned to Armenian News – NEWS.am, referring to the respective strategy adopted at the Government session on July 27.

The main idea of the reform is to do so that the electricity price can be chosen among several suppliers, who will compete in buying electricity from plants and sell it cheaper.

Who will be able to agree on the price? Local authorities, condominiums or each house for itself? These and other scenarios will be modeled by a computer program, which the Payments Center of the Armenian Ministry of Energy Infrastructures and Natural Resources of Armenia ordered.

There will still be one electric network (duplicating it is expensive and senseless). But several suppliers will already be able to send electricity via it.

Nevertheless, the Commission does not want to overall cancel the fixed tariffs. “Our consumers should have a guaranteed supplier. If someone is not comfortable with the contractual tariffs, they should know that they can rely on the fixed ones,” Baghramyan noted.

The Electric Networks of Armenia (ENA) will be one of such suppliers in the upcoming several years. However, they will not trade by contractual tariffs, but only by fixed ones, as they do now. “Otherwise, if one entity owns an electric network and at the same time competes with its other users, this may create unequal conditions,” Baghramyan said.

An analysis of model markets should be made by mid-2018, while the liberalization should be completed before 2019. The common energy market of the Eurasian Union should start operating by then.

PSRC has already developed commercial rules of energy market and wants to present them at its session on August 9. 

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