A significant increase in electricity tariffs is inevitable, says energy company Energo-Pro Georgia.
We can already conclude that the increase of the consumer tariff, unfortunately, is necessary,” Mikheil Botsvadze, General Director of the company.
The current tariff was set on January 1, 2018 for three years.
The company says that ‘the current tariff, for objective reasons, has long been unable to reimburse the dramatically increased costs for electricity purchases or other areas.’
We have been in a severe financial crisis for 10 months now, we have had to abandon all development plans, significantly reduce investment projects, even complicate the financing of the salary fund…Such a reduction in investment projects naturally has a negative impact on the quality of service and the continuity of electricity supply,” says Mikheil Botsvadze, General Director of the company.
The company notes that despite these difficulties, with the help of the founding group and the banking sector, they were still able to meet their obligations and retain all their employees.
Based on the legislation, tariffs are calculated and set by an independent regulator, the Georgian National Energy and Water Supply Regulatory Commission.
We are confident that GNERC will make a balanced, optimal solution that will protect consumers' interests on the one hand, and will enable energy companies to supply electricity safely to residents and commercial customers on the other. At this stage we do not interfere in their competence,” Georgian Economy Minister Natia Turnava said, weighing in on the matter.
The commission will discuss the issue tomorrow and will make an objective and balanced decision, noted Davit Narmania, the Chairman of the Georgian National Energy and Water Supply Regulatory Commission, adding that the parameters that will be approved will be focused on quality and safe energy supply.