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Following the Public Services Regulatory Commission’s (PSRC) decision to revoke the license of Electric Networks of Armenia (ENA), negotiations will be held over the next three months with the company’s board of directors regarding the transfer of ownership rights. If the parties fail to reach an agreement, the state may assume ownership on the basis of overriding public interest.
PSRC Chairman Mesrop Mesropyan made the announcement at a press briefing shortly after the regulator revoked the ENA license.
“This process does not end with today’s session. I assume that the parties will try to defend their rights in other venues. Therefore, the process will continue, also in the sense that today’s decision only revoked the license of Electric Networks of Armenia LLC. However, the law provides for further procedures. Over the next three months, the state will begin negotiations with the company’s owner or board of directors regarding the transfer of ownership rights,” he said, adding that the state could invoke eminent domain if negotiations don’t yield results.
“If the parties fail to reach an agreement during these three months, the state may subsequently assume ownership on the basis of overriding public interest.”
Mesropyan added that the PSRC tried to ensure that all parties were heard as much as possible during the session. Over the course of the three days, more than 150 questions were raised and answered.
The government had earlier appointed a temporary executive at ENA - the electric utility -through an emergency legislation, citing the company’s inability to fulfill its obligations and mismanagement.
ENA has denied the accusations. The company is owned by billionaire tycoon Samvel Karapetyan’s Tashir Group of Companies.
Prime Minister Nikol Pashinyan earlier accused ENA executives of mismanagement, stating that they had nearly triggered an energy crisis in the country.