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Armenia: Fake Social Project

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  • Armenia: Fake Social Project

    ARMENIA: FAKE SOCIAL PROJECT

    Vestnik Kavkaza, Russia
    Feb 3 2014

    3 February 2014 - 11:21am
    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.

    http://vestnikkavkaza.net/analysis/economy/50750.html

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