The exchange rate of the dollar and the euro continues to decrease. Will the situation in the exchange rate market affect gas and electricity tariffs?

In response to Radar Armenia's inquiry, Ashot Ulikhanyan, Head of the Tariff Policy Department of the Public Services Regulatory Commission, referring to the revision of the electricity tariff, said that such a process is being carried out, and only the currency exchange rate is not taken into account. There are also other factors. "Other factors significantly affect the tariff, for example, the balance of production and consumption. This year we have started a review process regarding the electric power system. And, among all the factors, the fall of the currency exchange rate will also be considered in the scope of the review."

According to him, the exchange rate also affects gas prices. Still, here it is necessary to consider that for large consumers whose consumption exceeds 10,000, the price calculation formula is defined depending on the exchange rate. "The tariff for those consumers is determined by the exchange rate of the 25th of the previous month. In other words, such consumers are already paying for gas at a lower price due to the drop in the exchange rate, and in the case of fewer consumers, it is set in AMD, where a review will be needed. The impact of the exchange rate will be evaluated, and we will understand."

Ulikhanyan also mentioned that large consumers make up about 65% of the total number of consumers who already have a price reduction.

The PSC official also considered the import price factor, which has a great weight in the tariff structure, necessary. On the other hand, however, he mentioned that the PSC is not a negotiating party, so they should initiate a review only after knowing the import price to understand how the factors will affect the gas price.

According to him, the commission started the review work in the middle of September, and by the end of the year, the PSC will have fully summarized the results, and the issue will be presented at the commission's session.

Hayk Magoyan