Georgia’s national energy regulator has announced a significant rise in electricity tariffs, set to begin on April 1st. The increase will range from 19% to 33%, depending on individual household consumption levels. The Energy and Water Supply Regulatory Commission, responsible for setting these tariffs, has outlined a 5-tetri per kWh increase for residential consumers in Tbilisi and surrounding areas, while the commercial sector faces a rise of 4-6 tetri per kWh.
This decision stems from growing electricity consumption, escalating wholesale prices, and reliance on imported power during the winter. Economists predict this will further drive up prices across the nation, mirroring Georgia’s current year-on-year inflation rate of 4.6% reported in February. Roman Gotsiridze, a former National Bank governor, stated that this rise was unavoidable due to increased demand and rising costs in other sectors.
Gotsiridze explained that higher electricity tariffs would inevitably increase the prices of other goods, noting that the government bears responsibility for these costs. He emphasized that issues like rising tile prices, which aren’t sold in supermarkets, indicate a problem elsewhere. This tariff increase could hinder the government’s efforts to combat rising living expenses.
Despite a 19.1% year-on-year increase in electricity generation – reaching 1,171 GWh – total consumption rose by 3.5% and generation declined by 2.8% compared to 2024, amounting to 13,838 GWh. The government’s cancellation of major hydropower projects, including the Namakhvani project, has also contributed to the situation. The rise in tariffs follows a period of price wars, with differing opinions among economists and officials regarding the causes of domestic inflation.
Topics: #tariffs #electricity #rise
