Armenian government approved a program of measures to mitigate tariff rates for water supply and wastewater disposal
The tariff rate for water supply and sewage disposal will be subsidized by the state budget of Armenia. At the January 31 meeting, the RA government approved a program of measures to mitigate the tariff rates set by the regulator for a single operator - the "Veolia Jur".company
As noted in the certificate - the rationale of the draft decision, out of 162, 7 drams (including VAT) for each cubic meter of water, the government will co-finance 9,702 drams (including VAT). Of the 28,712 drams (including VAT) for each cubic meter of wastewater discharged, the size of the state subsidy will be 1,712 drams (including VAT). This benefit, as noted in the certificate, will be applied from December 1, 2018, to November 30, 2019. The payments will be made on the basis of the certificate of the "Veolia Jur" company which undertakes to submit to the State Committee of Water Economy of the Republic of Armenia volumes of small-scale wholesale supplies of water and wastewater disposal by the 15th day of each following month. The company was also recommended to collect funds from December 1, 2018, based on the final tariff rate for consumers in the amount of 153 drams (including VAT) for each cubic meter of water, and 27 drams (including VAT) for each cubic meter of wastewater removed. Thus, a single tariff is 180 drams per 1 cubic meter of water.
To note, on November 28-of last year, the Public Services Regulatory Commission approved the application of Veolia Jur CJSC on the application of the former tariff for drinking water and wastewater disposal. According to the press service of the PSRC, from January 1, 2019, the tariff will remain the same. Initially, it was envisaged that the tariff should have been raised by 10.4858 drams and made 202.272 drams, however, based on the signed memorandum of understanding between the Ministry of Energy Infrastructures and Natural Resources of the Republic of Armenia and Veolia Jur CJSC, the tariff rate will start to be applied from 2025. Thus, the tariff rate will be equal to 191.414 drams, but taking into account the state's subsidization of the tariff, the tariff will remain unchanged - 180 drams per 1 cubic meter.
In turn, the Ministry of Energy Infrastructures and Natural Resources of the Republic of Armenia previously reported that due to forthcoming losses, the cost of the investment program of the company "Veolia Jur" for 2019 will be reduced, and the process of modernization of the system will continue due to savings from previously attracted credit resources.