Kobakhidze: Gas Tariff Decision Is Made by GNERC, Not Government Prerogative

Prime Minister Irakli Kobakhidze says that raising the gas tariff is not a government prerogative and that the decision on this matter is made by the Georgian National Energy and Water Supply Regulatory Commission (GNERC).

"[Regarding the tariff increase] the decision is made by GNERC, and we are all obliged to wait for GNERC's decision. This is not our prerogative. We are waiting for GNERC. Of course, we have consultations, but it is GNERC that makes the decision," Irakli Kobakhidze said.

Parliament fast-tracked a law that grants GNERC the authority to set differentiated tariffs for water and natural gas depending on the volume consumed.

Under the law, GNERC will be authorized to set differentiated tariffs for household consumers depending on consumed volumes: for water supply until January 1, 2036, and for natural gas until January 1, 2038.

Currently, natural gas tariffs for household consumers are set according to the operating areas of distribution licensees. The tariff per cubic meter does not change depending on the amount of gas consumed.

According to the explanatory note, the amendment envisaged by the bill does not change the basic principles of tariff regulation and is a mechanism operating only during a transitional period. Its aim is to reduce social risks and to implement changes in tariffs between consumer categories gradually.

The initiators of the law are deputies Shota Berekashvili, Giorgi Barvenashvili, Tornike Berekashvili, Levan Machavariani, Anton Obolashvili and Irakli Mezurnishvili.