Where and why Armenia loses electricity?

Over this year’s September Armenia’s electricity loss came to 11.6%.

Deputy marketing director of Armenian Electric Networks Arsen Gabrielyan told Aysor’s correspondent, that some minor losses appear in the densely populated private sectors, poorly equipped sectors, and among out-of-date meter users.

He told that in order to reduce losses a number of activities are carried: upgraded electronic multi-tariff meters, which have highest accuracy class, install; automated light low-voltage network (0.4kV) system implements; poor-conditional substations rehab; and staff-building activities including bonus system for employees, skilled professionals recruiting, and so on.

The company injected 750 million AMD to reduce losses and for technical base improving over this year, while to the year’s end will invest 1 more million AMD.

“Actual losses respond to technical base condition; to turn them into rate loss we need additional injections,” said Arsen Gabrielyan.

Meanwhile, Slavik Sargsyan, who is chairman of NGO of legal persons union “Pan-Armenian Association of Power Workers”, in interview with Aysor said that Armenian energy today is in a volatile situation given that the equipment is outdated, constant breakdowns and switchoff happen while the rural areas meet worse situation. According to Slavik Sargsyan’s calculations Armenia loses 2,100 million kw/h, not reported 760 million.

“This means that the cost of the monthly loss is 1.5 billion AMD.

“If we assume that this is a made index and the real loss is 500 million AMD, and this can be cut to 50-10 million, then I wonder where 1 billion AMD is?”

He shared his opinion that there are too little skilled professionals in field of electrical networks and that one can see a great drop in security requirements.

Head of Department of investment programs under Public Services Regulatory Commission (PSRC) Abgar Budagyan told Aysor’s correspondent that the running tariffs of electricity supplies 13% loss rate over current year is accounted, written in company’s privatization contract.

The difference between actual and real loss, no matter how much it was, is the company’s damage being compensated by the profit. He also pointed that the company is working at providing a minimum in loss.