Epress.am News from Armenia
The blocked section of Baghramyan Avenue, where thousands of Armenian citizens protested against increasing electricity rates for two consecutive weeks, was the independent Armenia which should have been expanded and extended, opposition Armenian National Congress member and former prime minister of Armenia, economist Hrant Bagratyan stated speaking in a television interview on Tuesday, July 7. If so much as one demonstrator remained at the site, the protest shouldn't have been dispersed, and authorities should have stood by the protesters on Baghramyan Avenue, the MP said expressing his regret over the abolition of such public space.
The fight against the hike in electricity rates, as stated by Bagratyan, is justified, since such a price (AMD 48.78, starting August 1) is completely illogical. The primary reason for the increase, according to the economist, is that “Electric Networks of Armenia” is falsifying its 13-14% loss.
“In reality, there are no such losses. The real losses amount to about 4-5%. The other 8-9% are there to cover up the electricity sold on the side. There are entities that consume electricity free of charge or at reduced prices, and the people pay for this. This is the main reason,” Bagratyan said.
As a result, the MP stressed, electricity rates in Armenia are even higher than those in Georgia and Ukraine which refused to join Eurasian Economic Union and, unlike Armenia, do not have a well-developed electricity generation.
Price increase prevention, according to Bagratyan, is also hindered by the Armenia-Russia intergovernmental agreement signed on December 2, 2013, binding Armenia to purchase large amounts of electricity from Hrazdan thermal power plant (operates with Russian gas) at the price of 40 drams, whereas [Metsamor nuclear power plant] generates electricity that costs only AMD 6, and Armenian hydroelectric power plants – 8-9 drams.