YEREVAN, JULY 2, ARMENPRESS: The Public Services Regulatory Commission of the Republic of Armenia considers the statement of the Chairman of the Management Board of the Inter RAO UES Boris Kovalchuk to be unclear and groundless concerning the current situation in the energy sector of Armenia. The statement, spread by the Public Services Regulatory Commission, says that the Commission is ready to prove its position during the discussions with international consultants as well. 

“In this situation we consider it unacceptable to search for a reason of justification for the own failures and shortcomings instead of paying more attention to them”, - says the statement, Armenpress reports.

Earlier it was reported that the complicated situation in the energy field of Armenia where the decision of electricity tariff hike caused mass protests has exceptionally economic and not political reasons. As Armenpress reported, Boris Kovalchuk, chairman of the managing board of Inter RAO told TASS the aforementioned.

Russia’s Inter RAO controls the Electric Networks of Armenia. The electricity tariff hike sparked mass protests which are still ongoing. Armenia’s president Serzh Sargsyan said the government was ready to cover costs related to higher electricity tariffs until the audit of the Electric Networks of Armenia was completed. The audit of the Electric Networks of Armenia by international audit firms is expected to take 3-6 months.

Kovalchuk said that Inter RAO welcomes the idea of the audit. He added that such an inspection would reveal the need to make serious changes in the whole industry. The head of Inter RAO said that the losses of Electric Networks of Armenia are caused by the existing management system in Armenia.

"Longstanding losses of the Electric Networks of Armenia are caused by the existing system of tariff regulation and the rules of electricity market in the republic of Armenia," Kovalchuk said.

The new electricity tariff was approved at the session of Armenia’s Public Services Regulatory Commission of Armenia on June 17.  The electricity price has increased by 6, 93 AMD, reaching 48, 78 AMD per 1 kWh. Electric Networks of Armenia CJSC had suggested increasing the electricity price by 17 AMD per 1 kWh. 

237 citizens protesting against electricity price hike were arrested from Baghramyan Avenue and the territory near the Freedom Square on June 23 for violating the public order. The police used physical force and dispersed the demonstration by using water cannon. A number of activists and journalists were detained. Later they were released and continued their protest for days on. The President of the Republic of Armenia announced that the increased electricity tariff will be subsidized. Hovik Abrahamyan stated in a briefing with journalists that the government will subsidize the increased electricity tariff by non-budget means.