ArmInfo. Large electricity consumers in Armenia will have the opportunity to directly sign contracts with electricity producers. At its session on March 19, the RA National Assembly Committee on Economic Affairs issued a positive opinion on the amendments to the Law on Energy submitted in the first reading by a group of NA deputies.
As the co-author of the presented document, Chairperson of the NA Committee on Financial, Credit and Budgetary Affairs Tsovinar Vardanyan noted in her speech, the legislative reforms that came into force in 2018 initiated the process of gradual liberalization of the electricity market and the transition to a new regulatory model. As a result of these reforms, currently about 30% of the consumed electricity is sold in the competitive segment of the market. However, as Vardanyan emphasized, the electricity market still requires large-scale reforms to make it accessible to all consumers, including individual residents, which will increase the number of electricity buyers and, consequently, the volume of electricity sold.
According to the current Law on Energy, currently, the rule of guaranteed purchase of electricity for 20 years by Electric Networks of Armenia CJSC is in effect for small hydropower and renewable energy facilities. At the same time, these generating facilities do not have the right to terminate a contract with ENA after signing it, which limits their ability to find new buyers of services. Currently, about 22 suppliers have received licenses to participate in the electricity market, but only six of them actually operate in the market. From the above, it can be concluded that, despite the interest in the market, there are difficulties and restrictions in the activities of these licensees, who face a number of obstacles. It is also worth noting that the trading volumes of the companies ranked first through third in terms of trading volume out of the six suppliers differ by more than five times. According to available data, the MP noted, the first of the listed suppliers is a company affiliated with ENA. The trading volumes of the other three suppliers are very small compared to the first three.
Based on the new initiative, it is proposed to grant the right to large buyers of electricity to directly contact consumers themselves. To do this, these facilities must have the status of a qualified consumer, which will be able to directly enter the market. Such consumers may include individuals and legal entities connected to substations with a voltage of 6 (10) kV and higher and a capacity of over one million kWh, who used more than 12 million kWh of electricity in the previous year. Another change grants small hydropower and renewable energy facilities the right to refuse guaranteed payments for two years from the date of signing contracts with ESA in order to directly enter the competitive market without restoring the right to guaranteed purchases.
