Whether the Georgian National Energy and Water Supply Regulatory Commission (GNERC) will decide to increase the electricity tariffs in the country will be clear today.
According to the Commission member Gocha Shonia, the Commission has not yet received a decision on the consumer tariff. It is a collegial body and all three members of the Commission make a decision on an individual basis. “Consumer tariff-related issues and the decision will be announced at today’s session of the commission,” Shonia says.
Energy Minister Kakha Kaladze suggests that the electricity tariff will increase slightly. He labeled as false the rumors about the growth by 25 tetri. The Minister has called for calmness in the society. According to Deputy Prime Minister and Energy Minister Kakha Kaladze, if electricity tariff hikes, the government will jointly discuss subsidizing. GNERC has set new, increased tariffs for thermal power plants yesterday. The Commission presented two new tariff projects at today’s public session.
The first project is based on the damage suffered by thermal power plants as a result of exchange rate depreciation, while the other one on the estimation of both cost-effectiveness and damages. The commission approved the second project, which was unacceptable for the thermal power plants. The tariff increases are as follows: GE Power Co. – from 7.397 GEL to 7.534 GEL; Mtkvari Energetics – from 7.229 GEL to 10.871 GEL; Georgian international energetic corporation – from 7.319 GEL to 10.194 GEL;
In May, Georgia’s Minister of Energy Kakha Kaladze told reporters that devaluation of the lari had seriously affected the energy sector. Companies running thermal power plants are under pressure because of this, since a significant part of our energy has been imported. The amount of gas exploited in plants to generate energy is also considerable,” Kakha Kaladze noted.
Recall that the lari has lost about 30% of its value in recent months, however, it is up to the commission to decide how much and how accurately the lari depreciation will affect the cost of thermal power plants tariff. He said that while the Commission would count the loss of thermal power plants, the additional costs and only then they would adopt a decision. It’s noteworthy that the share of electricity generated by thermopower plants account for 19.7% of the total energy production.