HETC Fined 20 Million Dram

The company "Armenian Electric Networks" LLC has been fined 20 million dram. The information is provided by the Public Services Regulatory Commission of Armenia. The decision was made during a session held today.

The company was fined for violating the deadlines for connecting consumption systems to the electric network, as this has directly led to violations of the rights or legitimate interests of a group of consumers.

The justifications presented by the electric company were deemed insufficient to exempt it from liability.

The Public Services Regulatory Commission also reports that residents of building 1/3, Tsitsernakaberd Highway in the capital have approached the Commission, informing them that the construction works of the newly built building have been fully completed four years ago, and the building has been put into operation. However, due to the lack of electricity, they are unable to settle into their own apartments.

They have contacted "Armenian Electric Networks" for help, but no concrete steps have been taken by the company to resolve the issue.

The residents do not have any alternative options, as "HETC" is the only company in the energy supply sector. Therefore, from the Commission's perspective, the company does not have the authority to arbitrarily decide whether or not to provide electricity to residents.

At the request of the Commission, "HETC" provided clarifications regarding the problem, stating that they can only sign a contract with the building's developer, "Millar" LLC, rather than with the residents themselves. According to "HETC", a contract has already been signed with the developer, but due to certain unfulfilled obligations on the part of the company, the matter has not been concluded. Specifically, it is mentioned in "HETC"'s written clarification that the developer has outstanding financial obligations to them.

Based on the written information received, as well as discussions and hearings organized with the parties, the Commission concluded that the actions of "HETC" are not in accordance with the law. Even if the building's developer has failed in fulfilling certain obligations, this has no relation to the property owners. Such a circumstance is not enshrined in any legal act.

According to the contract signed in 2010 between "Millar" LLC and "HETC", the building's electricity supply was supposed to be completed by 2011, which has not been achieved in practice.

By the decision of the State Commission for the Protection of Economic Competition, "HETC" is obliged to sign electricity supply contracts with the residents within 7 days. As a result of this decision, not only will this issue be resolved, but the entire building's water supply and the elevator issues will also be addressed.

Incidentally, this is not the first time that "HETC" has come under the spotlight of the regulatory commission. Previous violations also led to administrative proceedings against the company; however, a strict warning was given, simultaneously informing that in case of repeated violations, the Commission would provide a stricter approach in accordance with the law.