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Another increase of tariffs in Armenia: the loss of water will reimburse consumers

The increase in tariffs for the water supply services is expected under the program on the funding strategy for the water supply and drainage system, approved by the Government of Armenia on July 13, 2015.

«The current water tariffs do not cover the costs of operation and preservation. The CJSC «Armenian Water Sewerage» hasn’t revised the rates since 2009, and the «Lori Water Sewerage», «Shirak Water Sewerage» and «Nor Akunq» companies — since 2010. In this regard, according to the decision of the Armenian government (N 883 of August 14, 2014), the rate must include the costs of the expansion works on conservation and restoration that ensure the normal operation of the water system,” it’s noted in the program.

«The increase in water tariffs are due to the fact that companies operating in the water system, in recent years have taken large loans. Now they have to pay the debts, and they are forced to raise the tariffs,» in his interview to RUSARMINFO has said Vahagn Khachatryan, an Armenian economist.

“The water companies officially declare up to 70% loss. I do not understand what a business it is that is losing so much interest. How do they manage under such heavy casualties to supply water to the population of Yerevan for 24 hours unceasingly? Several times I raised this question, but never received an answer.»

The measures to implement the decisions of the government, the format and duration of the transition to self-financing rate should be determined before November 15, 2015. The information on determining the tariffs will be provided to the public in June of 2016.

Currently, the tariff for drinking water in Armenia is 144 drams for 1 cubic meter (about 33 US cents).

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