Why electricity prices have not decreased: former CEO of “Electric Networks of Armenia” explains
The liberalization of Armenia’s energy market, launched in 2022, has led to financial losses and prevented a reduction in electricity tariffs. This was stated by David Ghazinyan, former acting CEO of “Electric Networks of Armenia,” during a press conference on November 3.
According to him, between 2023 and 2025, around 30 billion drams have been withdrawn from the market, making it impossible to reduce electricity prices.
“If that money had remained in the market, electricity tariffs for households could have been reduced by at least 5 drams per kilowatt-hour annually. For socially vulnerable groups, electricity could have become almost free,” Ghazinyan noted.
He reminded that since February 1, 2022, the monopoly on electricity purchasing and sales in Armenia has been abolished, and traders have entered the market, selling electricity directly to large consumers and bypassing the Electric Networks of Armenia.
According to Ghazinyan, this disrupted the balance of the market.
“In some cases, monopoly is more effective than liberalization. This is one of those cases when the free market has benefited not consumers, but intermediaries,” he said.
He added that large companies mainly use these traders and pay lower tariffs, which keeps household electricity prices unchanged.