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Electricity Price can Rise in Georgia in the Autumn

In the autumn, electricity price may change in Georgia – “Business Rezonansi” newspaper writes.

The grounds for such assumptions gives the fact that the company “Energo Pro – Georgia”, which provides electricity generation and distribution to regions of the country, has made a request to change the tariff to the Energy Regulatory Commission (ERC). In addition, the cost of electricity generated by Khrami HPP is increasing, which is one of the sources of electricity  supply in Tbilisi.
However, the Commission states that the question of the rates growth is not considered at this stage.

 The Ministry of Energy states that Energy Commission is an independent organization, and therefore everyone must wait for its solution – under  the law, changes in tariffs for electricity, gas and water is the prerogative of the commission.

 With regard to the cost of electricity generated by Khrami HPP-1.

 Until April 2011, Khrami HPP-1 and Khrami HPP-2  were in control of the Russian company “Inter RAO”, which owns the Tbilisi electricity distribution network.

In April 2011, these facilities were transferred to the Russian company, a contract stipulating the cost of electricity generated by these HPPs was  signed – in particular, from  January 1, 2014 to  December 31, 2018 its price will rise gradually from 0.02,3 to 0.08,2 GEL in the case of  Khrami HPP -1  and  as for Khrami HPP -2  from 0.03,5 to 0.09,4  GEL.

 Tbilisi electricity distribution company “Telasi” completely buys electricity produced by these hydroelectric power plants.

 According to the Deputy Head of Georgian National Energy and Water Supply Regulatory Commission (GNERC), at the same time as  stipulated in the contract,  this should not lead to an increase in consumer tariffs.

On September 1, “Energo Pro- Georgia” tariff will also be revised , however, Gocha Shonia notes that tariff revision does not provide its unconditional and compulsory increase.

“EnergoPro”   consumer tariff  was  defined  until September 1, 2014, and accordingly, the company has the right to revise  it. The relevant department at Energy Commission is currently conducting an analysis of the request.

“At this stage we are talking about the growth of the distribution tariff, which may also affect the consumption rate, but it is difficult to say anything concrete. In general, the rate consists of two components – the price of purchased electricity and the cost of distribution. Thus the commission will also consider the cost of electricity  bought by  “EnergoPro” and based on the analysis will  conclude about the tariff. So today it is too early to say something specific, “- Shonia adds.