Electricity Tariff Increased

At a session on May 11 the Georgian National Energy Regulation Commission ruled to increase the price for electricity and to impose a three-step tariff, starting from June 1.

Those residents of Tbilisi who consume less than 100 kilowatts of electricity per month will have to pay 13.48 Tetri (approximately 7.4 cents) per kilowatt instead of 12.8 Tetri (approximately 7.03 cents).

Consumers using between 100 to 300 kilowatts per month will pay 16 Tetri (approximately 8.79 cents) and those consuming more than 300 kilowatts per month will pay 17.69 Tetri (approximately 9.7 cents).

According to the National Energy Regulation Commission, about 60-65% of Tbilisi residents consume less than 100 kilowatts of electricity per month.

Consumers living outside Tbilisi, who use less than 100 kilowatt per month will pay 12.98 Tetri (approximately 7.1 cents) instead of 8 Tetri. Residents in the country’s regions who consume between 100 and 300 kilowatts – 16.52 Tetri (approximately 9.07 cents) and residents in the regions who consuming more than 300 kilowatts per month will pay 17.49 Tetri (approximately 9.6 cents).

Officials say that about 80% of residents in the regions consume less than 100 kilowatts of electricity per month.

A small group of opposition Labor and Conservative party activists were gathered outside the National Energy Regulation Commission on May 11 to protest against the increase of electricity tariffs.

The leaders of these parties condemned the decision of the National Energy Regulation Commission and called for large scale protest rallies.

Officials say that the increase of the electricity tariff was unavoidable after Russia increased the gas price for Georgia from USD 63 to USD 110 per 1000 cubic meters in January.

According to the National Energy Regulation Commission, last year share of gas-generated electricity in Georgia totaled to 12%, while the rest was generated by hydro power plants.

“This share will increase this year and thermal power station will produce 30% and electricity generated by the hydro power plants will be 70%,” Giorgi Tavadze, the chairman of National Energy Regulation Commission, said.

At a news conference on May 11 Energy Minister Nika Gilauri said that the government allocated over GEL 100 million to subsidize the increased energy tariffs for consumers during the winter period. “But this could not last forever,” he added.

He said that calculation of the new tariffs by the National Energy Regulation Commission “was the correct decision.”

The Energy Minister also said that the government will subsidize the increased electricity tariff for about 400,000 of the country’s most socially vulnerable families.

“For these families the increase of the tariff will equal zero,” Gilauri added.

He also said that the government has spent over GEL 350 million over the past two and a half years to rehabilitate the country’s energy system.