Republic of Armenia : Power Sector Tariff Study

Republic of Armenia : Power Sector Tariff Study

Armenia's energy sector has achieved a level of electricity reliability, service quality and efficiency of sector operations that stands out among countries participating in Commonwealth of Independent States (CIS). Much of this can be attribu...

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Bibliographic Details
Main Authors:	Kochnakyan, Artur, Balabanyan, Ani, Antmann, Pedro, Laderchi, Caterina Ruggeri, Olivier, Anne, Pierce, Lauren, Hankinson, Denzel
Format:	Energy Study
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCESS TO ELECTRICITY ACCOUNTING ACCOUNTING STANDARDS ADMINISTRATIVE COSTS ALTERNATIVE ENERGY ANNUAL REVENUE REQUIREMENT APPROACH ASSET VALUE AVAILABILITY AVERAGE COSTS AVERAGE TARIFF AVERAGE TARIFFS BALANCE BENEFICIARIES BIOMASS BIOMASS PLANT BLOCK TARIFF BLOCK TARIFFS BUDGETING CAPACITY CONSTRAINT CAPITAL COSTS CAPITAL EXPENDITURE CARBON EMISSIONS CASH TRANSFER CASH TRANSFERS COLLECTION EFFICIENCY CONSUMER PRICE INDEX CONSUMERS COST OF CAPITAL COST OF ELECTRICITY COST OF SERVICE COST RECOVERY COSTS OF ELECTRICITY CURRENCY CUSTOMER COSTS DEBT DEBT SERVICE DEMAND FOR WATER DEPRECIATION CHARGE DEPRECIATION RATE DISCOUNT RATES DISPOSABLE INCOME DISTRIBUTION FACILITIES DISTRIBUTION MARGIN DOMESTIC CONSUMPTION DOMESTIC MARKET ECONOMIC CRISIS ECONOMIC EFFICIENCY ECONOMIC REGULATION ECONOMIC THEORY EFFICIENT ALLOCATION ELECTRICITY ELECTRICITY CONSUMPTION ELECTRICITY GENERATION ELECTRICITY PRICE ELECTRICITY SECTOR ELECTRICITY SUPPLY ELECTRICITY TARIFFS ENERGY AUDIT ENERGY BILLS ENERGY COMPANIES ENERGY CONSUMPTION ENERGY COSTS ENERGY EFFICIENCY ENERGY EXPENDITURE ENERGY SOURCES ENERGY USE EQUIPMENT EQUITY FINANCING EXCESS CAPACITY EXCESS SUPPLY EXCHANGE RATE EXCHANGE RATES EXPENDITURES FINANCIAL CRISIS FINANCIAL PERFORMANCE FINANCIAL SUSTAINABILITY FINANCIAL VIABILITY FISCAL BURDEN FIXED ASSETS FIXED CHARGE FIXED COSTS FUEL FUEL COST FUEL COSTS FUEL STORAGE GAS GAS PLANT GAS PLANTS GAS TURBINE GDP GENERATION GENERATION CAPACITY GENERATION COSTS GENERATORS GOVERNMENT BUDGET GOVERNMENT FUNDS GOVERNMENT PLANS GOVERNMENT SUBSIDIES HEAT HEAT DEMAND HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HYDROPOWER HYDROPOWER PLANT IMPLICIT SUBSIDY INCOME TAX INFLATION INITIAL CONSUMPTION BLOCK INSTITUTIONAL CAPACITY INTERNATIONAL BANK INVESTMENT COSTS INVESTMENTS IN ENERGY KILOWATT HOUR KILOWATT-HOURS LEVEL OF DEPRECIATION LOAD MANAGEMENT LOAN LOCAL DISTRIBUTION LOW TARIFF LOWER TARIFFS
Online Access:	http://documents.worldbank.org/curated/en/2013/06/17933307/armenia-power-sector-tariff-study http://hdl.handle.net/10986/16703

Description
Summary:	Armenia's energy sector has achieved a level of electricity reliability, service quality and efficiency of sector operations that stands out among countries participating in Commonwealth of Independent States (CIS). Much of this can be attributed to a decade of regulatory reform including a long-standing commitment to cost-recovery tariffs. The study is structured as follows: section one provides definitions of the key terms used and a background on the current tariff setting process in Armenia. Section two indicates how far tariffs have departed from cost-recovery levels and what costs have not been covered as a result. Section three describes how new investments will affect the average cost of service and the average residential tariff. Section four proposes a marginal cost-based tariff structure and explains why this differs from the current tariff structure. Section five discusses the poverty and social impact of tariff increases needed to cover new investments in 2021. Section six identifies options for subsidization and mitigating rate shock that will help transition to higher, marginal cost-based tariffs. Finally, section seven summarizes conclusions and recommendations of the analysis.

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