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Government to cover difference between current and increased electricity tariffs

By Natalia Kochiashvili
Wednesday, December 30
The Government of Georgia announced a novel decision, that citizens will not have to pay electricity bills with increased tariffs next year.

The National Energy Regulatory Commission increased both consumer and non-household tariffs in Tbilisi, as well as regions. In the capital, consumer tariff has been increased by 3.5 tetri, while the non-household tariff has been increased by more than 11 tetri. The tariff change is different for non-household users in regions - it increased from 10.8 to 14.6 tetris.

The tariff will be in force for 6 months, on July 1 the GNERC will reconsider the tariffs. The increase would have been higher, however, the GNERC reduced the costs incurred by Telas by GEL 16 million, which was 18 % of the total cost and in case of EnergoPro Georgia - by GEL 12 million.

"We can not share the structure of tariffs proposed by you ... Probably, it would be expedient to mention in the project that in a period of 6 months, the company's error will be reflected in the tariff from July 2021 ... The gap between us and your calculations is about 150 million kW., which is about 13 million GEL," - said the representative of "Telasi".

According to the Prime Minister Giorgi Gakharia, "the Georgian government will fully subsidize the difference between the current tariff and the increased tariff, for subscribers consuming up to 300 kilowatts."

He recalled that here are 1,700,000 subscribers in Georgia and 1,600,000 of them consume less than 300 kilowatts, which means that the subsidy will apply to 95% of families: "people will face other, more serious economic challenges. Tariff increases should not become an additional challenge.

As for private companies, according to the Prime Minister, by 2021, the difference between the current and increased tariffs will be 50% subsidized for those who produce locally produced food: "This is the minimum that allows us to be sure that the electricity tariff increase will not be reflected in the final price of food products produced in Georgia.

In addition, due to the expected increase in water tariffs in Tbilisi, Rustavi and Mtskheta, the state will provide subsidies to socially vulnerable families.