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Energy Minister Suggests Power Price Hikes and Calls the Population to Remain Calm

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.