Armenian President Offers to Temporarily Suspend Electricity Price Hike

Demonstrators wave national flags during a protest rally against a hike in electricity prices in Yerevan, Armenia, Saturday, June 27, 2015. The president of Armenia on Saturday suspended hikes in household electricity rates in an effort to end the protest

Armenian President Serzh Sargsyan has offered to temporarily suspend the planned increase in electricity prices by proposing the government to cover the cost while an independent audit takes place.

The announced electricity price hike has resulted in more than a week of protests, mainly in the Armenian capital of Yerevan.

Protests began a day after the state utilities commission came out with a decision on June 17 to increase the prices of electricity by more than 16 % from the beginning of August.

The situation escalated in the early hours of Tuesday, when the police used water cannons to disperse the crowd.

The independent review will determine whether the planned price hike by the Russian-owned electricity company is justified.

Despite the announcement of the president, protesters remained on the streets on Saturday, saying his offer fell short of their demand for the price hike to be reversed, the BBC reports.

According to analysts, the protests are motivated both by the alleged corruption and unaccountability of the Armenian government and big businesses being monopolised by Russian oligarchs, who have close ties with Moscow.

The electricity distribution network is wholly owned by Inter-RAO, a large Russian energy company, whose chairman Igor Sechin is a close friend of Russian President Vladimir Putin.

The announcement of the Armenian President came after a meeting with Russian Transport Minister Maksim Sokolov.

Sargsyan clarified that the funds covering the price hike will come not from the current social spending programme, but from resources allocated to further enhancing the country's security.

In case the audit determines that the price hike is justified, the planned increase will go forward.

Apart from demanding that the current tariff be reconsidered and lowered, the protesters are also seeking punishment for the police officers, who beat protesters and journalists on June 23.

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