New rule for setting natural gas and water supply tariffs

Legislative changes

The Parliament of Georgia is considering amendments to the Law on Energy and Water Supply under an expedited procedure. According to the bill, the Georgian National Energy and Water Supply Regulatory Commission (GNERC) is granted the authority, during a transitional period, to determine natural gas and water supply tariffs for household consumers based on the volumes consumed. Under the currently effective rule, the natural gas tariff is set according to the operating areas of distribution licensees and does not depend on the amount of gas consumed. 1TV+4

The authors of the bill are Georgian Dream deputies: Shota Berekashvili, Giorgi Barvenashvili, Tornike Berekashvili, Levan Machavariani, Anton Obolashvili, and Irakli Mezurnishvili. According to the document, GNERC will have the authority to act until January 1, 2036, in the case of water supply, and until January 1, 2038, in the case of natural gas. As noted in the explanatory note of the bill, this change does not alter the basic principles of tariff regulation and represents a transitional mechanism to reduce social risks. Interpressnews+2

Expected changes and assessments

Some media outlets report that if the new rule is enacted, consumers who use more gas will pay more. Additionally, TV Pirveli reports that gas and water bills may increase from the new year. In contrast, the explanatory note of the bill states that the purpose of the change is to protect social interests and maintain access to basic services. Facebook - Mtavari+5

According to Netgazeti, the change grants the regulator the authority and not an obligation, while according to Radio Liberty, the consideration of the bill under an expedited procedure is due to the fact that the commission must review the tariffs for the next year at the end of 2026. Facebook - Netgazeti+1