Azernews.Az

By Sara Rajabova

Heated discussions on the expected increase in electricity price in Armenia haven’t slackened its pace in recent times.

Though the government is willing to raise the electricity tariffs, it, however, delays the final decision on this issue for some time. The main reason for prolongation of this decision is the public protests against the price hike in the country.

Earlier, the government explained its decision to increase electricity tariffs by arguing the need to avoid bankrupting the national power company - the Electric Networks of Armenia. The company earlier requested for increase of electricity price in Armenia.

The Armenian government, according to the newspaper Zhoghovurd, is discussing new options to address the issue of electricity tariffs for consumers. In any case, the authorities should provide additional revenue for the Electric Networks of Armenia company.

In meantime, the Armenian media reported about the involvement of the Electric Networks of Armenia in the "offshore" fraud.

A while ago, one transaction of Electric Networks of Armenia got a lot of buzz around. The company rented in 2011 cars for a large sum from the Ektrak Service company, Hraparak newspaper wrote. They paid only an amount equal to $ 1,000 per month to Ektrak service, whilst ENA concluded other expensive deals with the mentioned company.

Ektrak service was reported to belong to former Deputy Director of ENA Karen Darbinyan, who is the founder of this company.

Darbinyan registered the company in 2006, and founded it in 2007. At that time, he was one of the most influential figures in ENA. It is worth to note that he was not the only shareholder of the company. Devolt Pawer, a foreign national who helped to register the company in the offshore zone on the Virgin Islands, had the equal share with Darbinyan.

This proves that the Armenian officials only attempt to increase their wealth through different ways, rather than implementing their duties. This corrupted government, in turn, bulk of economic problems in the country, such as frequent raise in commodity and food prices.

Now, the government tries to cover its debts to the ENA with increasing electricity tariffs in the country.

Strong public protests and pressure of the opposition urges the government to delay the price hike.

In late May, the Armenians went on protests in 15 cities across the country against the increase in the electricity prices. Participants of the protest in Yerevan threatened the authorities with an escalation of protest in case electricity tariffs would go up.

The current tariff on ENA for the population stands at 41.85 drams ($0.09) per 1 kWh per day and 31.85 ($0.07) for night. The company proposed to increase prices up to 58 and 48 drams respectively.

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Sara Rajabova is AzerNews’ staff journalist, follow her on Twitter: @SaraRajabova

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