Electricity tariffs in Georgia not to be significantly increased

Photo: Electricity tariffs in Georgia not to be significantly increased / Economy news

Tbilisi, Georgia, July 15
By Nana Kirtzkhalia - Trend:

The development of a new tariff methodology have been completed in the electricity sector in Gerogia, although it is still unknown whether the current rate will be changed.

Georgian National Energy Regulatory Commission held the presentation of the new methodology in Tbilisi on July 15. The event was attended by the members of the commission, Deputy Energy Minister Mariam Valishvili, the representatives of the companies working in the energy sector and experts.

The new methodology is balanced and protects the interests of consumers so that they would be protected from increase in price and earmarked spending, according to Valishvili.

Furthermore, it also gives certain motivation and guarantees to the investor that invested amount will be charged with definite benefit.

As the deputy minister noted, the methodology includes a high level of fairness. As to whether the new methodology will affect on the electricity tariff, Valishvili said that significant growth of rate will not happen.

"Tariff virtually was not recalculated for several years, respectively, all the investments that have been made, those expenses that have been optimized really should be reflected in the tariff. Now, the large-scale count of all the components that are included in the tariff is being held," she said.

Valishvili added that while she cannot comment on the outcome, the fact is that an investment has been made, it should bring results, less expenditures, improved service, good quality and, accordingly, the compensation of excessive spending.

"The achieved result should not affect the tariff and increase it. The significant growth rate will not happen. In terms of optimization, it is possible that some components will be increased," she said.

It is still unknown whether the rate will be changed, according to the regulatory commission's member Gocha Shonia.

"We just now developed the new rule for determining tariffs. Accordingly, after its entry into force, we will see in practice what the rates will be," he noted.

Edited by S.I.

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