In Armenia, regulation of the energy sector is primarily governed by the Law “On Energy” (No. 148, adopted on March 7, 2001, with subsequent amendments up to 2025). This law integrates oversight of the electricity, thermal energy, and natural gas sectors. It defines the relationships between state authorities, energy companies, and consumers, emphasizing the principles of transparency, non-discrimination, and equality of rights. The law mandates the protection of consumer rights while simultaneously balancing the operational needs of distribution and supply companies as licensed operators.
This framework is complemented by the Law “On the Public Services Regulatory Authority” (1997, as amended), which established the PSRC as an independent body responsible for tariff regulation, licensing operators, exercising oversight, and resolving disputes. The PSRC approves the Rules of Supply and Use, market rules, and quality standards, ensuring uninterrupted supply and safety. In addition, the Law “On Energy Efficiency and Renewable Energy” (2004) promotes a sustainable energy policy, indirectly benefiting consumers by encouraging efficient heating and electricity use.
These laws are aligned with Armenia’s international obligations, which provide for investor protection while also ensuring consumer safety mechanisms in the event of problematic cross-border disputes.
Key Rights of Consumers in the Electricity and Thermal Energy Sectors
Consumers benefit from comprehensive legal protection aimed at ensuring reliable, affordable, and safe energy supply.
Right to uninterrupted supply. Licensed distribution companies are obliged to supply electricity and thermal energy to all eligible consumers within their service areas who comply with the rules of supply and use. In cases of late payment, disconnection is permitted only after prior notice, and supply must be restored once outstanding debts are settled. In the event of accidents or restrictions, priority is given to socially vulnerable groups in accordance with government-established regulations.
Fair tariff regulation and accurate metering. The PSRC sets tariffs that must reflect justified costs and a reasonable profit. Tariffs may vary depending on consumption volume, seasonality, or time of day. Billing must be based on accurate meters that comply with technical standards. Illegal consumption (for example, meter tampering) entails liability but may not result in arbitrary disconnection.
Right to quality and safety of supply. Licensed companies are required to maintain reliable networks, conduct technical inspections, and observe safety zones. The PSRC monitors quality indicators, including response times to outages and the efficiency of heat supply. In cases of violations, penalties are applied, including tariff reductions.
Access and connection to the network. New consumers receive technical conditions for connection to the network, and meters are installed by the licensed company at its own expense. In multi-apartment buildings, the rights of sub-consumers are protected through shared-use agreements.
Non-discrimination. Tariffs and services must be equal and fair, without discrimination. Socially vulnerable households benefit from subsidized tariffs established through state support programs.
These rights apply to both residential and commercial consumers and are subject to ongoing oversight by the PSRC.
Dispute Resolution and Complaint Procedures
When issues arise—such as incorrect billing, service interruptions, or tariff disputes—consumers have access to clear and effective resolution mechanisms.
Initial contact with the supplier. Complaints are first addressed directly to the supply company.
Intervention by the PSRC. If the issue is not resolved, the consumer may submit a written complaint to the PSRC in person, by mail, or electronically via the psrc.am website. The Commission conducts an expedited review and adopts binding decisions on matters related to supply, billing, and quality. In 2024, the PSRC resolved more than 500 consumer complaints, primarily in the electricity sector, with a strong focus on oversight and compliance.
Judicial appeal. PSRC decisions (with the exception of tariff decisions) may be appealed before the Administrative Court.
These procedures are designed to minimize service disruptions, and the PSRC’s emergency contact lines (for example, +374 15 58-45-29) are available for urgent and emergency situations.
Conclusion
Consumer protection in Armenia represents not only regulatory oversight but also a comprehensive system aimed at ensuring impartial treatment of all energy consumers. Being informed about your rights and the available legal services can make challenging situations more manageable.
Remember that every situation is unique, and the specific circumstances of your case determine the best solution to your problem. Whether you are facing billing disputes, service quality issues, or safety concerns, legal mechanisms are always available to resolve the matter.
The future of consumer protection in Armenia is promising, with ongoing improvements in legal services, regulatory oversight, and consumer awareness. Staying informed about your rights and the services that protect them ensures that you receive fair treatment and reliable service from your energy suppliers.
