On 22 April, the Public Services Regulatory Commission (PSRC) issued a statement saying that force majeure has been abolished and that subscribers must pay for the electricity and natural gas they consume, otherwise there will be disconnections.
The Prime Minister Nikol Pashinyan also touched upon the issue during his live Facebook broadcast, noting that the supply companies were allowed to toughen their position and the supply of electricity and gas to all the subscribers who are able to pay but do not pay should be turned off.
In an interview with Iravaban․net, the PSRC Spokeswoman Liana Azizyan said that the recognition of the current situation as a universal force majeure for all residents-subscribers was conditioned by the fact of restriction of the right of movement of the citizens of the Republic of Armenia by the force of the legal regulations adopted in case of state of emergency.
According to her, the conducted studies have shown that currently the opportunity for people in the country to make appropriate payments is provided. In addition, restrictions on a number of activities have been lifted by the Commandant. The program of relevant measures approved by the Government of the Republic of Armenia has significantly reduced the problem of paying for utilities provided to socially vulnerable and vulnerable residents as well.
“The Commission has canceled the universal force majeure for all residents and subscribers, at the same time leaving the opportunity to apply to the supplier for non-payment of utility bills in case of appropriate justifications in each case,” Liana Azizyan said.
According to Gayane Gevorgyan, lawyer of the Armenian Lawyers’ Association, though it is true that by the decision of the Commandant, the activity of certain spheres of economic activity was allowed, however, even in this case, the employees of the mentioned spheres will be deprived of the opportunity to make payments, taking into account that another month will be needed to receive income: “Such a decision by the PSRC cannot be considered legitimate from the point of view of law, as it does not reflect the real picture of the situation.” In particular, due to the continuation of the state of emergency, the restrictions may be continued or tightened, which does not reflect the requirements of the RA Law on the Protection of Consumer’s Right,” the lawyer said.
In reply to the question of what rights do citizens have now, and what can they do to prevent the possibility of using utilities, the PSRC press secretary answered that each consumer has the right to apply to the supplier for non-payment for utilities in case of relevant justifications, according to the contract, to be considered a force majeure and not to stop the supply.
“It should also be noted that “Electric Networks of Armenia” CJSC has stated that the electricity supply will not be disconnected for the residents and consumers consuming up to 10,000 AMD per month of electricity. And “Gazprom Armenia” CJSC has announced that in case of non-payment within the mentioned period, first of all, the gas supply to the residents-subscribers who have consumed more than 30 thousand drams will be stopped.”
In this respect, lawyer Gayane Gevorgyan notes that under the signed contracts, the suppliers do not have the right to terminate the supply only for non-fulfillment or improper fulfillment of payment obligations. “The PSRC also addressed this issue with its decision, noting that it will be under the control of the Commission. Especially considering that the state of emergency is still going on and may continue,” she added.
In reply to the question whether it is possible that in case of non-payment, penalties and fines will be applied by ENA, and “Gazprom”, the lawyer said that in case of non-fulfillment or improper fulfillment of obligations, penalties and fines will be applied to the resident-subscribers based on the contractual obligations.
“The maximum annual amount of fine determined by the contract may not exceed four times the calculated interest rate set by the Central Bank of the Republic of Armenia, unless otherwise provided by law. The total amount of all fines determined by the contract may not exceed the principal amount of the debt at that time. The court or the financial system mediator shall reduce the amount of the claim at the request of the debtor, if the fine is clearly disproportionate to the consequences of the breach,” Gayane Gevorgyan said.
Liana Azizyan added that the decision was discussed with the Commandant’s Office. As for announcing force majeure again, she noted that such an assessment cannot be given at present.
According to Prime Minister Nikol Pashinyan, the choice is not to turn off the electricity of several thousand subscribers, but in having electricity in the country or not. “In a few days, about 7 billion drams were paid in the system, with this we saved the system from collapse. In other words, at least a lot of people who were able to pay said, well, they if the supply will not be turned off, let’s not pay. There are 775 thousand ENA subscribers and 623 thousand gas subscribers in Armenia. The electricity of 4300 subscribers and the gas supply of և 736 gas subscribers was cut off. At the same time, in the case of electricity, the debt of all disconnected people is 30 thousand drams and more, and in the case of gas subscribers – 80 thousand and more. We faced a problem that the country’s energy system was facing a collapse,” the Prime Minister said.
Diana Harutyunyan
