Electric utility could go public after nationalization

The Armenian government is launching a process to assume the management of Electric Networks of Armenia CJSC, the electric utility of the country.

“It is clear that the state must very quickly assume the management of the Electric Networks of Armenia CJSC and the implementation of subsequent processes towards nationalization and efficiency of management. We must do this swifly and effectively,” Prime Minister Nikol Pashinyan said at the Cabinet meeting.

The accused the current ENA leadership of mismanagement. 

He said a power outage took place during the grand opening ceremony of the $70,000,000 Homplex Hyper Mall on June 25, which he attended.

“People invest 70 million dollars and can’t have a normal opening ceremony. There are two options here, either it was a deliberate sabotage or the system is technically unable [to ensure]. Either way they [ENA] have crossed all lines,” Pashinyan said.

The legislative initiatives required for the process have been prepared.

The possible subsequent scenarios – full nationalization, management reforms and efficiency increase – will be discussed after the first step is completed, i.e., state control is established over the company.

Pashinyan said the government wants the ENA to go public in the future as a strategic goal. He said Armenian citizens must have the chance to acquire shares of the company.

“We must ensure the kind of guarantees that would enable Armenian citizens to acquire shares with their savings. We have a similar strategic goal also in case of the Zangezur Copper Molybdenum Combine,” Pashinyan said.

The Prime Minister suggested nationalizing the company on June 18.

Pashinyan earlier accused the executives of the ENA of mismanagement and causing a near-energy crisis in the country. He suggested that citizens must be compensated for damages related to frequent power outages.