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Electricity tariff increases in Tbilisi

By Tea Mariamidze
Friday, September 4
The National Energy and Water Supply Regulatory Commission (GNERC) made a decision to increase the consumer price of electricity by 3-4 tetris on September 3. The average power purchase price, which was 5,480 g / kWh before becomes 11,173 t / kWh.

The Regulatory Commission made the decision after the JSC "Telasi" Co. electricity provider in Tbilisi addressed the Georgian National Energy and Water Supply Regulatory Commission with regard to a tariff review on 23 July. The company requested a tariff increase, naming the sharp decrease of lari exchange rate, increased electricity cost and electricity transmission tariff growth as the motives.

The Ministry of Energy discussed subsidies, which implies benefits for vulnerable people as it happened after the power price increase in the regions, when the government stated that they would cover the difference between the old and new electricity tariffs for vulnerable families.

The session at the Regulatory Commission office was ongoing on the background of the rally, held by the non-parliamentary opposition. The protesters called upon the Regulatory Commission not to increase the tariff.

The Left-Wing Alliance Chairman, Ioseb Shatberashvili said that the tariff increase may cause severe political consequences.

Jondi Bagaturia, the chairman of Kartuli Dasi, stated that there are no economic and legal grounds for tariff increase.

The opposition reminds the government its pre-election promise, which implied the decrease of communal taxes.

It should be noted that another electricity provider company Energo-Pro Georgia has already raised tariff by 3.35 tetris per kWh in the regions and its over one million customers will see increased tariff from August 1, 2015. This decision came after the company filed a request to the Regulatory Commission to increase the tariff due to economic downturn in the region and depreciation of Gel against US dollar.