HEC Fined 10 Million Drams for Overreporting Meter Readings

The company "Armenian Electricity Networks" (HEC) has been fined 10 million drams. The Public Services Regulatory Commission imposed the fine for violations of clauses 37, 41, and 43 of EMOK regulations.

A working group established by the commission conducted monitoring of HEC’s "Ararat", "Ashtarak", and "Abovyan" electric networks from May 4 to May 8, 2020, in order to investigate possible excess reporting of electricity supplied to individual consumers. The inspection involved examining 720 commercial metering devices and recording actual readings, which were then compared with the readings noted by the company's employees using standard forms during the period from May 1 to May 3, 2020.

It was discovered that the recorded readings by HEC employees for 33 meters during May 1-3 were higher than the readings taken by the working group from the same commercial meters during May 4-8, indicating irregularities in the data collection process.

The monitoring revealed numerous discrepancies: 35 electronic meters showed incorrect date, month, year, and time; 48 meters integrated into the automated electricity accounting and monitoring system did not record expenditures from the previous month; seven meters were completely omitted from the reading records; and five meters had unsealed covers. Additionally, there were missing seals and covers on 125 commercial meters.

Similar violations were recorded in the "Dilijan" and "Sisian" electric networks.

By its decision issued yesterday, the Commission has mandated HEC to install and seal covers on 142 commercial meters and seal 176 covers, rectify discrepancies in recordings from May 1-3 on 63 meters, and submit proposals to eliminate the recorded violations within a month.

HEC has the right to appeal the commission's decision within two months from the date it comes into effect or to apply to the administrative court. HEC is obligated to transfer the amount stipulated in the first point of the decision, identified by the account number 900005242327, to the state budget of the Republic of Armenia within one month from the decision's effective date.