Russia-based diversified energy company Inter RAO is planning to divest its 100% stake in Electricity Networks of Armenia (ENA) CJSC to Cyprus-registered Liormand, for an undisclosed amount.
The Armenian Government has approved a draft decision for the proposed sale, enabling the ministries of energy and natural resources, justice, finance and economy to decide on it following assessment of related documents.
MassisPost cited Energy and Natural Resources Minister Yervand Zakharian as saying to reporters that: "All documents will be examined. We will provide more detailed information within one week."
The decision to sell ENA comes following increase of electricity prices by $0.015 or 16.7% per kilowatt-hour, effective from 1 August by the Armenia’s Public Services Regulatory Commission (PSRC).
However, the electricity tariff hike decision triggered protests in Yerevan and other cities, forcing the government to subsidize supplies of power in the country.
As per the draft decision, Liormand will be responsible for fulfilling the terms of contract signed between the Armenia Government and Midland Resources in 2002.
A unnamed source close to Inter RAO was reported by Russian business news agency RBK as saying that said the firm is due to agree the terms with Liormand for the ENA sale.
Meanwhile, Armenian Minister of Energy and Natural Resources Yervand Zakharyan was cited by Panorama.am as saying following the government session that the proposed sale will not affect the electricity prices in the country.
"A tariff has already been set by Public Services Regulatory Commission and it will not be revised," Zakharyan added.
Image: Armenia’s Public Services Regulatory Commission (PSRC) recently increased electricity tariffs by $0.015 per kilowatt-hour. Photo: courtesy of a454/FreeDigitalPhotos.net.