Gas Tariff Increases in Georgia

At a session on April 16 the Georgian National Energy Regulatory Commission (GNERC) ruled to increase the price for natural gas starting from May 1.

Residents of Tbilisi, who consume low pressure gas will have to pay 50.62 Tetri per cubic meter; those who consume average pressure gas (mostly bakeries) will pay 41.07 Tetri, while consumers of high pressure gas (large enterprises) will pay 37.37 Tetri, including VAT.

The GNERC ruling came after the Tbilisi gas distribution company KazTransGaz-Tbilisi asked the commission to set new gas tariffs. The company was demanding 71.42 Tetri per cubic meter.

Residents of various regions of the country, who currently pay 40-45 Tetri per cubic meter, will have to pay 49-55 Tetri starting from May 1. Tariffs differ by region, depending on the supplier. The following rates apply:

Kutaisgazi ? 50.74 Tetri;
Rustavgazi ? 50.2 Tetri;
Samtrediagaz ? 52 Tetri;
Kareligazi ? 52.34 Tetri;
Telavigazi ? 53 Tetri;
Sachkheregazi ? 49 Tetri;
Caspigazi ? 55 Tetri;
Gorigazi ? 51.3 Tetri;
Mtskhetagazi ? 50.8 Tetri.

Chairman of the Georgian National Energy Regulatory Commission Giorgi Tavadze said that increase in gas tariff would sooner or later be reflected in the electricity tariff as well. He ruled out, however, any immediate increase. 

Currently, Georgia pays USD 235 per 1000 cubic meters for gas supplied by Gazprom and USD 62.5 for gas supplied from the Azeri Shah-Deniz field. Russian gas provides the lion’s share.

?Our neighboring country is trying for a long time to leave Georgia without natural gas and exerts both political and economic pressure on the country. And when Russia more than doubled gas prices for Georgia from USD 110 to 235 [starting from 2007], naturally it would be reflected in the gas tariff? I assure you that the GNERC did its utmost to take consumer interests into consideration,? GNERC Chairman said at a news briefing on April 16.

Opposition figures have already protested the planned increase in gas tariffs, saying that ?it will be a serious social blow? for the population.   

This post is also available in: ქართული (Georgian) Русский (Russian)