Georgian National Energy and Water Supply Regulatory Commission has reviewed issues related to fining Tbilisi Electricity Supply Company (Telmico) LLC and Telasi JSC on its public hearing of August 12. Due to the violation of the requirements of the normative acts of the Commission Tbilisi Electricity Supply Company LLC has been fined with 75 000 GEL and Telasi JSC with 50 000 GEL based on the Commission’s decision. Inaccurate billing of the electricity subscribers in Tbilisi has been the reason for imposing fine.

A number of citizens have filed a claim to the Commission regarding the breach of their rights by Tbilisi Electricity Supply Company LLC and Telasi JSC. The claims concerned improper application of the tariff levels in June and July and accrual of higher charges to the electricity consumers. This has been confirmed by the examination conducted by the Commission. 

Based on the Law of Georgia on Energy and Water Supply of December 27, 2019, the Resolution of the Government of Georgia N246 of April 21, 2020 on Approving Electricity Market Concept Design and a set of normative acts all market participants were informed on current, planned and expected amendments at the electricity market.

In accordance with the essence of the unbundling of activities in the framework of reform Telasi JSC has been obliged to identify costs by the June of 30, 2021 and to submit respective bills to the customers, whereas public service obligation of electricity supply has been imposed upon Tbilisi Electricity Supply Company LLC in accordance with the Resolution N236 of May 25, 2021 from July 1 of this year.

Hereby, on the public hearing of August 12 Georgian National Energy and Water Supply Regulatory Commission fined Georgian Water and Power for the breach of licensing conditions in an amount of 75 000 GEL in favor of the state budget. The reason for fining has been irregular meter readings by the company and imposition of charges upon consumers in bulk that contradicts the rules.

Based on the claims of the citizens filed to the Commission, Georgian Water and Power LLC was not performing meter readings on a monthly basis, but rather in a certain periodicity, within several months and/or year and as a result consumers had to make payment for several months altogether. Hereby, consumers indicated that actual readings of 2021 included also water amounts consumed in 2020 that were calculated on the basis of new tariffs and not the tariffs that were in force before January 1, 2021.

Based on the examination conducted by the Commission such breaches have been identified in cases of the most metered consumers of the Georgian Water and Power LLC.

The Commission calls upon the companies to comply with their obligations precisely and not to allow such breaches. In case of repeated grave breaches the Commission will discuss the issue of imposing sanctions envisaged under current legislation once again.