Armenian economist says audit in ENA bid to win time

/By AzerNews/

By Sara Rajabova

An Armenian economist believes that conducting an audit at the Electric Networks of Armenia (ENA) Company is just a bid to win time.

Following the massive protests in capital Yerevan against an increase in electricity tariffs, President Serzh Sargsyan said the government would cover this price hike until an audit is conducted at the ENA, which supplies electricity to the country’s residents.

However, economist Vardan Bostanjyan said the “audit” lesson means nothing for the ENA; its sole purpose is to buy time, Armenian media reported.

“There has always been audit at the ENA and it was performed by foreign rating companies,” he said.

He reminded that an audit in the economy is the process by which it turns out what is financially profitable.

He added that the government’s subsidy for the forthcoming electricity price hike is not an answer.

“Where will they get that money from? If the government is compensating, this also will be done at our expense,” Bostanjyan said, adding that a large company like the ENA should be state-owned.

Sargsyan has not ruled out the possibility of returning the company to the Armenian government and transferring it under competent management if the audit shows that the aforementioned increase in electricity prices is unjustified.

ENA Press Secretary, Natalya Sarjanyan said on July 8 that the company does not plan to start the process of bankruptcy.

Sarjanyan added that technical work is underway to prepare for the audit of the company. It is carried out by the Armenian government and the Russian state-owned Inter RAO UES company, which is the proprietor the ENA.

Despite numerous protests, the Public Services Regulatory Commission of Armenia recently increased the price of electricity in Armenia by 6.93 drams per cubic meter—instead of the 17 drams, proposed by the ENA—and this decision will take effect on August 1. But the decision is expected to be followed by an increase in the prices of numerous products and services in the country.