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Georgian business associations make statement in response to increase of natural gas prices

Oil&Gas Materials 10 December 2020 17:59 (UTC +04:00)
Georgian business associations make statement in response to increase of natural gas prices

BAKU, Azerbaijan, Dec.10

By Tamilla Mammadova – Trend:

Seven Georgian business associations have released a statement in response to the increase of natural gas prices for the commercial sector that is coming into effect on January 3, 2021, Trend reports via Georgian media.

The statement says that Tbilisi Energy’s decision to increase natural gas prices is not understandable amid the pandemic and the decision will also influence households as increasing prices for the business sector will increase costs and thus prices of products.

The associations say their member companies will be forced to decrease employees or decrease their salaries.

"Now when almost all businesses have been shut down and the affected sectors are constantly appealing to the government for various types of assistance and benefits, Tbilisi Energy makes an unexpected and inconsistent decision and puts unjustifiable additional pressure on businesses, raising already high utility bills," says the statement.

The announcement says that the depreciation of the lari is a problem for the business sector overall, including Tbilisi Energy, which is also facing serious problems, but notes that Tbilisi Energy is a natural monopoly, the decision of which has a drastic impact on the entire economy of the country and all entities involved in it.

The statement asks that a meeting with the company be held to review the calculation that allegedly justifies the 0.24 lari (7.34 cents) increase per 1 cubic meter of natural gas reaching 1.1 lari (34 cents) in total, and urges the Georgian government to participate in negotiations and solve the issue.

The business associations which signed the statement are the EU-Georgia Business Council, the Taxpayers Union, the Georgian Producers’ Federation, the Distributors Business Association, the Georgian Employers' Association, the Georgian Federation of Hotels and Restaurants and Restaurateurs Association.

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