In late Septembers U.S. firm to say whether recent rise in electricity prices in Armenia economically justified
YEREVAN, September 10. / ARKA /. Deloitte & Touche, a leading U.S. financial services firm, hired by the government of Armenia to determine whether a recent rise in electricity prices in Armenia is economically justified, will present the first findings in late September, international economic integration minister Vache Gabrielyan told a Cabinet session today.
He said Deloitte & Touche experts had already spoken with officials from the Public Services Regulatory Commission (PSRC) and separate companies. He said the study will be held in three stages, the first of which will be completed by the end of September, the second phase in late October, and the third in late November.
The US firm is expected to look into financial operations of the Armenian energy sector from 2010-2015 and assess its tariffs set by the Public Services Regulatory Commission.
Energy and natural resources minister Yervand Zakaryan added that the agency is updating the lists of households and SMEs, which consume up to 500 kWh of electricity a month, because they are subject to partial government compensation.
"We expect the lists to be updated later this week and before the 20th of September compensations will reach beneficiaries," Zakaryan said.
Headquartered in New York, Deloitte is the world’s largest company providing audit, tax, consulting and other financial services. It has a small subsidiary in Armenia.
The accord to commission the audit of the company was reached on June 26 during Armenian president Serzh Sargsyan's meeting in Yerevan with Russian transport minister Maxim Sokolov, the Russian co-chairman of the joint Armenian-Russian intergovernmental commission on economic cooperation. The next day Sargsyan said the government will keep electricity prices unchanged for consumers by subsidizing their increased cost at least until the release of findings of the audit.
Earlier Serzh Sargsyan said the audit will find out whether the price hike approved by state regulators was economically justified or resulted from alleged corruption and mismanagement in the Electricity Networks of Armenia.
The Public Services Regulatory Commission’s decision on June 17 to increase the electricity price for consumers by 6.93 drams (16.7%) sparked a vigorous public backlash forcing Armenian citizens to take to streets in a protest against the increase. -0- -
He said Deloitte & Touche experts had already spoken with officials from the Public Services Regulatory Commission (PSRC) and separate companies. He said the study will be held in three stages, the first of which will be completed by the end of September, the second phase in late October, and the third in late November.
The US firm is expected to look into financial operations of the Armenian energy sector from 2010-2015 and assess its tariffs set by the Public Services Regulatory Commission.
Energy and natural resources minister Yervand Zakaryan added that the agency is updating the lists of households and SMEs, which consume up to 500 kWh of electricity a month, because they are subject to partial government compensation.
"We expect the lists to be updated later this week and before the 20th of September compensations will reach beneficiaries," Zakaryan said.
Headquartered in New York, Deloitte is the world’s largest company providing audit, tax, consulting and other financial services. It has a small subsidiary in Armenia.
The accord to commission the audit of the company was reached on June 26 during Armenian president Serzh Sargsyan's meeting in Yerevan with Russian transport minister Maxim Sokolov, the Russian co-chairman of the joint Armenian-Russian intergovernmental commission on economic cooperation. The next day Sargsyan said the government will keep electricity prices unchanged for consumers by subsidizing their increased cost at least until the release of findings of the audit.
Earlier Serzh Sargsyan said the audit will find out whether the price hike approved by state regulators was economically justified or resulted from alleged corruption and mismanagement in the Electricity Networks of Armenia.
The Public Services Regulatory Commission’s decision on June 17 to increase the electricity price for consumers by 6.93 drams (16.7%) sparked a vigorous public backlash forcing Armenian citizens to take to streets in a protest against the increase. -0- -