YEREVAN (A.W.)—Armenia’s Public Services Regulatory Commission (PSRC) announced on Dec. 23 that they will be cutting electricity prices by about 2.6 percent.
For most Armenian households, the daytime electricity price was lowered from 46.2 drams (about 10 U.S. cents) to just under 45 drams per kilowatt hour.
The price for low-income families will be lowered by 13.4 percent to 40 drams per kilowatt hour. They will pay soon 30 drams during night hours beginning Feb. 1, reported RFE/RL’s Armenian service.
Previously, the PSRC had approved a reduction in the domestic prices of natural gas. Prime Minister Karen Karapetyan called for these price cuts shortly after he came into office. Some opposition politicians have linked the introduction of the new measures with the upcoming elections, as the Republican Party of Armenia (RPA) has been accused of using the lower prices as a way to secure votes.
Basic electricity price was already cut by 2.6 drams per kilowatthour in June. Prices then increased after government stopped subsidies, which were introduced following June 2015 demonstrations in Yerevan, in August.
Despite the recent reduction, electricity will still cost more than it did prior to June 2015. Baghramian blamed the inactivity of the Metsamor Nuclear Power Plan due to construction as the primary reason for the lack of a greater reduction.
“We are getting smaller amounts of cheap electricity, which has to be compensated by more expensive electricity generated by thermal-power plants,” Baghramian told RFE/RL’s Armenian service.
He added that energy tariffs will only continue to increase in the upcoming years since the Armenian government will need more cash to repay loans financing the construction of the new power transmission lines connecting Armenia to Iran and Georgia.
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