Armenia moves to fully nationalize Electric Networks of Armenia

(Horizon Weekly / YEREVAN) – The Government of Armenia has entered the final phase of nationalizing the Electric Networks of Armenia (ENA), declaring the company a public interest asset and initiating the process of full state ownership with compensation, according to ENA’s temporary manager, Romanos Petrosyan.

Speaking about the ongoing process, Petrosyan confirmed that negotiations with Tashir Capital, the company’s previous owner, did not result in an agreement. Under procedures defined by law, a three-month period had been set following the revocation of the company’s license. February 21 marked the deadline for the government to submit an offer and conclude negotiations for the transfer of ENA’s shares to the state.

While the Ministry of Territorial Administration and Infrastructure formally presented an offer on behalf of the government, no deal was reached. As a result, Petrosyan stated that, pursuant to Article 60 of the Constitution, the government must now recognize 100 percent of ENA’s shares as a public interest asset and proceed with full nationalization after paying compensation. He declined to disclose the proposed valuation, citing the confidential nature of the legal process.

The Public Services Regulatory Commission had earlier stripped Tashir Capital of ENA’s license and appointed Petrosyan as temporary manager on July 18, 2025, while also launching administrative proceedings into the company’s activities.

Petrosyan revealed that approximately two dozen criminal proceedings have been initiated in connection with alleged abuses, most of which he reported to the Prosecutor General’s Office. These include suspected financial and economic manipulations and documented indications of the migration of particularly large sums. He noted that findings from the preliminary investigation could significantly affect the company’s real valuation, as equity capital and capitalized assets determine its actual worth.

Rejecting claims that the developments amount to political persecution of businessman Samvel Karapetyan, Petrosyan argued that systemic issues in the energy sector had been under discussion since the autumn of 2024. He pointed to the resignation of the chairman of the Public Services Regulatory Commission and the dismissal of the deputy minister responsible for the energy sector as indicators of deeper regulatory shortcomings.

On consumer tariffs, Petrosyan said a proposal to reduce electricity rates had been submitted to the regulator. However, he explained that a scheduled shutdown and modernization cycle at Armenia’s nuclear power plant will temporarily prevent tariff reductions, as the country will need to purchase electricity at higher prices during that period.

Instead, ENA plans to lower other fees within the current tariff structure. Petrosyan announced a 30 to 40 percent reduction in fees for new subscribers connecting to the distribution network, as well as a 50 percent reduction in payments related to increasing supplied electricity capacity.

If no agreement is reached during the legally prescribed period, the state will assume ownership of ENA on the grounds of public interest, marking one of the most significant restructurings in Armenia’s energy sector in recent years.