Increase in energy pay “not excluded”

The head of Georgia’s National Energy and Water Supply Regulatory Commission, Irina Milorava, doesn’t exclude an increase in energy tariffs in the wake of the dramatic devaluation of the national currency to the US dollar, with one Lari now costing 2.74 USD.

The Commission is the legal entity established under the Law of Georgia on National Regulatory Authorities, which regulates the Electricity, Natural Gas and Water Supply Sectors.

The Commission is independent from any other governmental authorities and acts in the capacity under the Law of Georgia on National Regulatory Authorities and the Law of Georgia on Electricity and Natural Gas.

During her visit to the Parliament of Georgia yesterday, Milorava stressed that prices on energy products would be specified next week, and did not exclude an increase in tariffs.

Her statement came after Georgia’s Energy Minister Kakha Kaladze vowed no increase; however, he added that the issue needed to be settled by the Commission and not by his ministry.

As it appears, next year will be extremely hard for the population of Georgia, with increased prices in many directions.

In the situation when the incomes of Georgian people are very low, and with thousands of unemployed people, increased costs for oil and energy products will be a real disaster, especially in the winter and spring seasons, which are quite cold in Georgia.

Some energy providers have already increased prices, without waiting for the Government changes to come into force from January 1.

It is obvious that the Government can no longer control the situation in terms of the national currency; the only way it found to alleviate pressure on the Lari was to make life more expensive for its people.

Such negative changes and steps, when nothing genuine was created in the Georgian economy over last several years, will very likely cause negative reactions amongst the people.