Solvency of Electric Networks of Armenia undermined - newspaper
YEREVAN, September 30. /ARKA/. The loan portfolio of the Electric Networks of Armenia CJSC is badly overloaded now, which makes it impossible further lending, Evgeny Bibin, the company CEO, said in an interview with Iravunk.
He is quoted by the newspaper as saying that Armenia's wholesale electricity market is formed in the way that obliges the Electric Networks to pay all the excessive expenses connected with electric power generation, and nobody but this company is responsible for underproduction of electric energy.
And therefore, he said, the company had to borrow money from banks to fulfill its financial obligations.
Bibin said that consumer prices for electricity remained unchanged throughout 11 years despite the expenses necessary for ensuring proper and uninterrupted power supply grew in the country because of certain circumstances, such as inflation, increase in fuel prices etc.
In his words, price rise was avoided then thanks to privatization of the company, but in the recent three years, the company was stricken hard by system problems, which are absolutely not connected with the Electric Networks' activity or management.
Bibin singled out contraction in electric power generation by large and small hydro power plants, delay in the launch of repair of the Nuclear Power Plant and energy balance upset among these problems.
«These circumstances have not been taken into account in the energy balance upheld by the Public services Regulatory Commission,» he said in his interview. «As a result, the company has not earned the expected AMD 37.7 billion, and this is the main cause of the current financial situation.» ---0----
He is quoted by the newspaper as saying that Armenia's wholesale electricity market is formed in the way that obliges the Electric Networks to pay all the excessive expenses connected with electric power generation, and nobody but this company is responsible for underproduction of electric energy.
And therefore, he said, the company had to borrow money from banks to fulfill its financial obligations.
Bibin said that consumer prices for electricity remained unchanged throughout 11 years despite the expenses necessary for ensuring proper and uninterrupted power supply grew in the country because of certain circumstances, such as inflation, increase in fuel prices etc.
In his words, price rise was avoided then thanks to privatization of the company, but in the recent three years, the company was stricken hard by system problems, which are absolutely not connected with the Electric Networks' activity or management.
Bibin singled out contraction in electric power generation by large and small hydro power plants, delay in the launch of repair of the Nuclear Power Plant and energy balance upset among these problems.
«These circumstances have not been taken into account in the energy balance upheld by the Public services Regulatory Commission,» he said in his interview. «As a result, the company has not earned the expected AMD 37.7 billion, and this is the main cause of the current financial situation.» ---0----