The power sector of Armenia achievedremarkable results through first generation policy, legal,regulatory, and institutional reforms implemented from1991-2003, the first decade of independence. The sectorachieved financial sustainability with tariffs that assuredrecovery of reasonable expenses and collections that reachedvirtually 100 percent of sales. The implicit and explicitsubsidies to the power sector were eliminated and thelargest sector companies were among the top taxpayers in thecountry. More than 70 percent of power sector assets weredenationalized (privatized or transferred to Russianownership in debt-to-asset swaps). However, in 2010 theseachievements started to reverse and gradually worsenedduring the past several years. Today, the large state-ownedsector power companies, as well as the privately-ownedElectric Networks of Armenia (ENA) have accumulated largeamount of expensive commercial debts and are on the verge of bankruptcy.
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