07.07.2020 Release

7 July, 2020


Davit Narmania, the Chairman of Georgian National Energy and Water Supply Regulatory Commission, has presented an annual activity report. Government officials, the representatives of international and non-governmental organizations, licensees, the experts of the energy sector and media officials attended the event.

Davit Narmania discussed about the Commission’s activities in 2019 and challenges for ongoing 2020. He underlined the Commission’s activities implemented during COVID-19 pandemic – remote meter reading mode, prolongation of call center’s working hours, simplification of services via cell phone, deposit reliefs. As the chairman noted, 2020 is the year of energy sector reformation. Pursuant to the Law of Georgia on electricity and Water Supply, GNERC is supposed to adopt a number of normative acts during ongoing year.

‘In the process of new energy market formation, creation of normative base in accordance with the European regulations is especially important. The Commission is actively working on implementation of new regulations. The Commission elaborated and adopted Regulatory Cost Audit Rules, Investment Appraisal, Monitoring of Energy Markets, Transmission System Operator Certification Rules, Energy Market Monitoring Rules; Rules on Licensing and Reporting about the Energy Activities, Dispute Settlement Rules. It is essential the rights of consumers to be protected and licensees to have opportunity to ensure provision of their consumers with high quality service. In 2019, according to the decision of the Commission, due to the violation of guaranteed standards, the distribution companies paid 818,235 GEL to the customers as compensation. Furthermore, total amount of unreasonably accrued cut-offs from customer accounts constituted 2 122 865 GEL, declared Davit Narmania.

According to the annual report of the Commission, internal consumption of electricity in Georgia has increased by 4.4% at average rate, though electricity generation is decreasing. Electricity importation is increasing. Compared to the last year, in 2019 the share of imported electricity increased by 7.8%. Moreover, electricity import exceeded exports by 6.7 times, whereas last year it constituted 2.6. 

Regarding the natural gas sector, in 2019 the demand for natural gas  increased by 15% and constituted 2.5 cubic meters, an increase mainly concerned household and thermal power plant consumption. Consumption for the household purposes was 983 mln m3 in 2019, whereas non-household consumption was 1,519 mln m3, out of which the consumption of 678 mln m3 is TPP consumption.

The number of metered consumers is increasing in the water supply sector. Average consumption by per metered household customer increased by 1.1%, whereas non-household consumption decreased by 7.8%.