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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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

id	okr-10986-16703
recordtype	oai_dc
spelling	okr-10986-167032021-04-23T14:03:30Z Republic of Armenia : Power Sector Tariff Study Kochnakyan, Artur Balabanyan, Ani Antmann, Pedro Laderchi, Caterina Ruggeri Olivier, Anne Pierce, Lauren Hankinson, Denzel 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 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. 2014-01-29T22:32:24Z 2014-01-29T22:32:24Z 2013-06 http://documents.worldbank.org/curated/en/2013/06/17933307/armenia-power-sector-tariff-study http://hdl.handle.net/10986/16703 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Economic & Sector Work :: Energy Study Economic & Sector Work Europe and Central Asia Armenia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	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
spellingShingle	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 Kochnakyan, Artur Balabanyan, Ani Antmann, Pedro Laderchi, Caterina Ruggeri Olivier, Anne Pierce, Lauren Hankinson, Denzel Republic of Armenia : Power Sector Tariff Study
geographic_facet	Europe and Central Asia Armenia
description	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.
format	Economic & Sector Work :: Energy Study
author	Kochnakyan, Artur Balabanyan, Ani Antmann, Pedro Laderchi, Caterina Ruggeri Olivier, Anne Pierce, Lauren Hankinson, Denzel
author_facet	Kochnakyan, Artur Balabanyan, Ani Antmann, Pedro Laderchi, Caterina Ruggeri Olivier, Anne Pierce, Lauren Hankinson, Denzel
author_sort	Kochnakyan, Artur
title	Republic of Armenia : Power Sector Tariff Study
title_short	Republic of Armenia : Power Sector Tariff Study
title_full	Republic of Armenia : Power Sector Tariff Study
title_fullStr	Republic of Armenia : Power Sector Tariff Study
title_full_unstemmed	Republic of Armenia : Power Sector Tariff Study
title_sort	republic of armenia : power sector tariff study
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2013/06/17933307/armenia-power-sector-tariff-study http://hdl.handle.net/10986/16703
_version_	1764433729364688896

Republic of Armenia : Power Sector Tariff Study

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