08.06.2023 Release

8 June, 2023

 

Davit Narmania, the chairman of the Georgian National Energy and Water Supply Regulatory Commission, presented the 2022 activity report of the Commission to the media representatives. Davit Narmania spoke about the results of the regulation of the electricity, natural gas and water supply sectors, implemented projects, and the main directions and priorities of the Commission's activities.

Davit Narmania stated that, in Georgia, electricity and natural gas tariffs are among the lowest when compared to other countries in the region and across Europe. In particular, Georgia takes second place in terms of low tariffs for both electricity and natural gas on a unified scale.

The chairman emphasized the importance of safeguarding consumer rights and expressed the commission's commitment to ongoing efforts in this area throughout 2022: " The total amount of sums unjustly charged to citizens and written off by the regulator amounted to 1,268,610.37 GEL. In addition, following the commission's regulations, distribution companies paid 869,235 GEL as compensation to consumers due to a violation of service standards. Out of the total amount, 695,700 GEL was paid due to the violation of the standard for connecting the new consumer to the network, while the remaining sum was attributed to the violation of the guaranteed standard," said Davit Narmania.

He also stated that the year 2022 held great significance in terms of the structural reorganization of the electricity market. This was due to the ongoing refinement and establishment of the new legislative framework in accordance with the requirements of the law of Georgia on Energy and Water Supply. The mentioned process was fully harmonized with the directives and regulations of the 3rd European energy package, as well as the protocol signed with the Energy Community.

In 2022, 7 small power plants were commissioned with a total installed capacity of 26.92 MW.  Based on the data for 2012-2022, the electricity generation in Georgia increases by 4% on average every year, which, in addition to hydrology, is due to the electricity generated by the power plants put into operation and rehabilitated in the current years. As for the consumption of electricity, the internal consumption of electricity in Georgia, based on the data of 2012-2022, is increasing by 4.5% annually on average " - the chairman of the commission noted.

According to the Commission's 2022 report, the main source of natural gas supply to Georgia in 2022 was the Republic of Azerbaijan. In 2022, Georgia's demand for natural gas was 2,998 billion cubic meters, reflecting a 20% increase compared to the figure of the previous year. As for the water supply sector, according to Davit Narmania, 9 water supply licensees were operating in Georgia in 2022.

"Among the licensees in the water supply sector, one is a state-owned enterprise, five are municipally owned, and three are privately owned. Water supply licensees are responsible for providing drinking water to 68% of the population, while the remaining 31% relies on local self-government units.  In total, the number of consumers increased by 5.8% in 2022 compared to 2021", - said Davit Narmania.

The Commission's Chairman also discussed the Commission's international relations and highlighted the implementation of international projects aimed at regulatory development. Furthermore, he emphasized the establishment of the Elizbar Eristavi Energy Training Center under the auspices of the Commission. According to Davit Narmania, the center serves as a valuable platform for the professional growth and development of energy specialists as well as other individuals interested in the field.