In case if the gas price is raised there’s a possibility that the electrical power price will e raised as well. The general director of the “Yerevan Electrical Networks” Closed Joint Company Yevgeni Glandunchik announced about this. He didn’t say exactly what the price might be. “After the gas price raise we should check out the balance”, answered Mr. Gladunchik. “Means, how much the gas price will be raised and much electrical power will be produced”. He didn’t deny that the devaluation of the US dollar has “snatched” a lot of money from them. In the coming three year the company is planning to do a 20-billion AMD investment, which will decrease the number and frequency of power accidents. Mr. Gladunchik has also mentioned that RAO “YEES Russia” has not yet officially submitted the rights of the authorized owner of the “Yerevan Electrical Networks”. Currently the legal process of submitting the owner’s rights is pending. By the end of this year these issues will be solved. According to the company director there are no personnel changes, the general director will also keep occupying his position.
Y. Gladunchik informed that the innovative process of the 33-volt low-voltage stations has already started. The $34 million that was provided by the International Cooperation Japanese Bank in 1999 to implement the above-mentioned plans is not enough any more. Now we need $52 million. Therefore, it’s possible to curtail the number of the stations that need to be modernized. The company has to implement that program within five years. The investments of the company do not have any connection with this credit program. Mr. Gladunchik is satisfied with the functioning of the company in 2005, in particular, gathering bills. This is done in 100%. In 2006 it is planned to reduce the loss up to 16%. The order of installment of dual-cost measure devices. The subscriber, by paying 5900 AMD at the bank, will install a new measuring device and from 23:00-7:00 will pay 15 AMD for one kilowatt of power. The measure device costs 28000 AMD. The price difference will be paid by the “Yerevan Electrical Network” to the providing company, named “Energy Concern”.
By late February, 2006 the “Yerevan Electrical Network” company will monthly provide 80 million kilowatt/hour to Georgia. The cost of each kilowatt will be 2,9 cent. Power provision will even continue after the completion of the contract. Georgia has recently announced several times that they would raise the gas transfer price from Russia to Armenia that goes through their territory. It’ interesting to know whether Armenia speculates to raise the electrical power price (provided to Georgia) as a response.