ENA nationalization desirable, but too expensive - premier 

ArmInfo. In Armenia, electricity prices must be effective, precisely to the extent that they ensure the normal functioning and development of the system. This was stated by Prime Minister Nikol Pashinyan on November 25  during a meeting with Romanos Petrosyan, interim manager of Electric  Networks of Armenia CJSC.

"It is very important for us that tariff policy be justified. For  example, I have seen in many countries how, to avoid political  crises, electricity prices were constantly reduced, resulting in  systems on the brink of collapse," Pashinyan said.

He emphasized the importance of communicating to citizens the  importance of effective electricity pricing. "We shouldn't have a  political goal of lowering electricity prices so much that problems  arise in a year, two, or even three years. If we determine that they  are truly high, we must bring them down to a level, say, plus a  kopeck, so that this kopeck can be invested in further development,"  the prime minister noted.

He added that he would like to nationalize ESA, but that this would  be a budget expense, and it might be necessary to attract an  investor.

"Our main issue related to ESA is a strategic approach to the future.  There are two possible options: the first is to fully transfer ESA to  state ownership within the framework of legally established  procedures, after which we will invite a professional manager to  manage the sector, of course, under government oversight. The second  is to attract new investors through transparent procedures,"  Pashinyan said.

In turn, Romanos Petrosyan reported that, as a result of the work  carried out and significant financial savings, approximately 1,700  employees of Electric Networks of Armenia CJSC with salaries below  200,000 drams have been receiving a bonus of 20,000 drams for the  fourth month running. This represents an average salary increase of  10-20%. This process will be ongoing until it becomes possible to  revise the rates and staffing lists, as this authority is vested in  the company's Board of Directors. The average salary in Armenia is  320,000 drams. Of ESA's approximately 6,800 employees, exactly  half-3,400-receive salaries below 320,000 drams, and 1,700 of them  earn salaries below 200,000 drams. These include fitters, some  inspectors, drivers, workers, and others. Approximately 1,500  employees receive salaries in the 300,000-600,000 dram segment. This  salary structure largely depends on monthly performance indicators  and losses.

Petrosyan also reported that the investigations revealed instances of  falsification and underdelivery, for which criminal proceedings have  already been initiated. These instances also served as grounds for  license revocation. According to this year's plan, the Public  Services Regulatory Commission set the permissible loss threshold at  7%. This is the difference between the amount of electricity received  and consumed. "There were lower figures, which seemed strange.  Research has shown that in many cases, the volumes of energy  generated by autonomous producers from solar power plants are simply  underreported. Furthermore, a large number of state and community  companies were identified as being the source of data. Arrests were  recently made in connection with these cases. There is a third risk:  the shadow trade in certain electricity could have led to  monetization transactions. In other words, shadow trade involving  shadow amounts. To date, over 15 criminal cases have been initiated.  An inspector from one of the branches has also been arrested for  overwriting the meter readings of a community non-profit organization  with over 1 million drams," Petrosyan stated. As a reminder, on  November 17, the Public Services Regulatory Commission (PSRC) issued  a decision to deprive Electric Networks of Armenia (Electric Networks  of Armenia) of its power transmission rights. On June 18, law  enforcement agencies arrested and subsequently remanded in custody  Samvel Karapetyan, a prominent businessman and head of the Tashir  Group of Companies, on charges of calling for the overthrow of the  constitutional order. This occurred solely because Karapetyan,  speaking in defense of the Armenian Apostolic Church, stated in an  interview that "we will intervene in our own way" if politicians fail  to fulfill their mandate. Following Karapetyan's arrest, the  authorities effectively seized control of ESA from the Karapetyan  family, appointing Romanos Petrosyan, a member of the Civil Contract  party, as its interim manager.

Armenia's entire top political leadership is currently gathering at  the Demirchyan Sports and Concert Complex. They are also gathering  with civil servants from all government agencies for the event,  organized by the Office of the Prime Minister of the Republic of  Armenia.