Bill nationalizing Electric Networks of Armenia passes 1st reading in parliament

YEREVAN. July 2 (Interfax) - Amendments to a number of laws, which stipulate nationalization of Electric Networks of Armenia, passed the first reading in the national parliament on Wednesday.

Electric Networks of Armenia is the national monopoly electricity distributor, which belongs to the Tashir Group of Russian businessman with Armenian origins Samvel Karapetyan, placed under two-month arrest in Yerevan for calls for seizing power.

Only members of the Civil Contract ruling faction voted for the package of amendments to the laws on the public services regulatory authority and on energy. The parliamentary opposition harshly criticized actions of the authorities and described the initiative as a politically motivated attempt to take over a company.

The amendments vest the Public Services Regulatory Commission chairman with the right to initiate a procedure in case there is information about serious violations in operations of energy companies, take measures towards replacing corporate management, and invite an interim manager to work until the investigation into violations is over and the company either offers an action plan to fix the damage or its license is revoked.

In that case, the owners will be compelled to sell their company, and the government will have the preferential right to buy it for three months. If the owner refuses to sell within two months, the company stock may be put to an auction by an administrative order.