ENA Quashing Rumours that Head of "Tashir Group" might Purchase the Company

No negotiations on selling "Electric Networks of Armenia" are being held, Natalya Sarjanyan, the press secretary of the ENA, told the media on July 8 when asked of ENA CEO Yevgeny Bibin being substituted. 

Commenting on ENA's parent company "INTER RAO" chairman Boris Kovalchuk's words, Sarjanyan said they were generic character. "Kovalchuk has simply said that "Inter RAO" is ready to sell and buy any asset if offered good money. There have been no negotiations on selling the ENA". 

According to the Haykakan Zhamanak Daily's reliable sources, after undergoing audit, the Electric Networks of Armenia CJSC will be sold to Samvel Karapetyan, the owner of Tashir Group.  It has been widely rumored for a long time already that Karapetyan is negotiating with Inter RAO, the sole owner of ENA, to buy the Company.  The deal was to be announced yet on June 27, but Karapetyan postponed the negotiations when he learnt about the upcoming audit of the Company. 

To note, on June 17 the Public Services Regulatory Commission raised the electric power tariffs by 6.9 AMD to about 50 AMD per 1 kWh.  ENA CJSC had insisted on 17 AMD rise in the rate because of the company's debts.  This decision has sparked public protests in the country.  The decision even angered the political and public organizations and the opposition forces of Armenia that blame ENA for mismanagement.  The Company, in turn, does not guarantee uninterrupted power supply to the country, unless the power rate is increased by 17 AMD. To recall, Deputy Minister of Energy and Natural Resources Iosif Isayan said that ENA CJSC borrowed USD 220 mln against the guarantee of the Armenian Government.  Consequently, if the company is unable to repay the loan, these obligations must be assumed by the taxpayers. "No to Plunder!" movement has been holding ralliues against the energy price hike since June 19. On June 27, Armenian President Serzh Sargsyan said that the Armenian Government would bear the burden of the raised tariffs until the ENA audit was over. He also said that the ENA might be nationalized. For his part, David Harutyunyan, Minister-Head of the Armenian Government Administration, said that the audit at the ENA might last for 3-6 months.

ENA CJSC is 100% subsidiary of Inter RAO UES OJSC with an exclusive license for transmission and distribution of electric power in the territory of Armenia. The company serves 967,000 consumers.