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Natural Gas Tariffs Reduced in Georgia

By Tea Mariamidze
Thursday, December 27
Gas tariffs have been decreased by GEL 0.014 in Tbilisi. Starting January 1, 2019, subscribers of the gas provider company KazTransGas – Tbilisi will pay 46.139 Tetri for each consumed cubic meter of natural gas.

The current tariff of KazTransGas – Tbilisi is 46.153 Tetri.

Members of the Georgian National Energy Regulation Commission (GNERC) made the decision unanimously during the sitting on Wednesday.

The tariff of natural gas consists of three components: transportation, distribution and supply. According to the GNERC, due to the reduction in the cost of transportation and distribution, it became possible to reduce the consumer tariff in Tbilisi.

The gas tariffs will be slightly reduced in the regions as well.

Sakgorgas subscribers will pay GEL 0.012 less from January 1, 2019, while Socar Georgia stakeholders will see GEL 0.011 decrease in their tariffs.

Deputy Minister of Economy and Sustainable Development Natia Turnava says the state has made a decision to subsidize the purchase price of gas, which allowed the GNERC to leave gas tariffs unchanged or even slightly reduce them.

"This decision was made by the state after quite hard work. There was an expectation that gas consumer tariffs would be increased due the intensive investment program, which is implemented by the companies operating in Georgia's gasification system but the state has found a way and the increased price will not be reflected in the consumer tariffs. It was achieved through the subsidies,” she explained.

Irina Milorava, Chair of Georgian Energy and Water Supply Regulatory Commission, says that the reduction of the tariff was achieved with the help and support of the State Oil and Gas Corporation.

According to Milorava, the commission received a letter from the Ministry of Economy, according to which the price of gas will be reduced per cubic meter 1000from $105 to $103.7 and in regions from $105 to $ 92.25.

“As a result, it was possible to maintain existing consumer tariffs and even reduce them slightly… In the letter of the Ministry of Economy, it is stated that the costs will be paid by the state company - Oil and Gas Corporation,” she stated.