by Susanna Petrosyan, Yerevan. Exclusively for Vestnik Kavkaza
The problem of gas prices is becoming topical in Armenia again. Many citizens have realized the repercussions of higher prices after seeing their bills. The situation was aggravated by the unusually cold December. According to ArmRosgazprom and Electric Networks of Armenia, gas and electricity consumption in December 2013 increased dramatically, compared with the year before.
The commission for social services increased the gas price from 132,000 to 156,000 drams ($1 = 409 drams) per 1,000 cubic meters of gas and electricity prices from 30 to 38 drams. This means that the prices for gas went up by 18.2% and for electricity by 25%.
Many goods and services have become more expensive. Bakeries are having financial problems, some of them are in the red. The situation may be a prelude to growing bread prices. A new front of social grievances is forming. The government has recently decided to compensate the gas prices in the second half of 2013 and in January-December 2014. This will cause extra expenditure amounting to 1.6 billion drams for the budget to help about 65,000 poor families.
What is the government really compensating? After increasing the prices, citizens and experts focused on gas, though power consumption is less affected by seasons.
People wonder how the price for electricity could grow by 25% if the gas price grew by 18.2%. The price for one KW/h should also include other components, such as the salaries of staff working at power plants. Their salaries have not been raised, so the price for electricity could not advance more than that for gas.
Besides, about 30-35% of all electricity produced in the country comes from thermal power plants. There are also questions about gas consumption at power plants. It is worth noting that modification of the fifth block of the Razdan thermal power plant and implementation of new Japanese technologies at the Yerevan thermal power plant reduced volumes of gas consumed.
This makes people wonder what the government really wants to compensate for if the new electricity price was raised above that of gas. There is one answer: the government, concerned by escalating protests over accumulative pensions, is trying to make the situation better. The decision 'on compensation' is only a cover for a fake social project of the government, which remains the protector of monopolies dedicating their work to gaining excessive profits.
