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What is gas price in Georgia, and how does it set tariff? - Exclusive

What is gas price in Georgia, and how does it set tariff? - Exclusive
What is gas price in Georgia, and how does it set tariff? - Exclusive

Energy carriers' share represents a considerable part of the business and household-related expenses.

The Report.ge news agency asked the SOCAR Georgia Gas company about setting commercial and consumer gas tariffs in Georgia and showed interest if the current prices are adequate.

As the company declares, the Georgian National Energy and Water Regulatory Commission (GNERC) sets the consumer tariff, while the fare for supplying gas to subscribers for non-domestic purposes depends on the agreement with the supplier.

As SOCAR Georgia Gas says, the current gas tariff is adequate.

The company declares that the tariffs are periodically revised under the legislation, and it is quite reasonable.

"For instance, in July, the new tariffs for the company were approved following the established procedures," SOCAR Georgia Gas stated.

It reports that the consumer tariff for the population is 0.56.928 GEL per cubic meter, and the price of one cubic meter of natural gas for non-domestic purposes is 0.95 GEL.

The GNERC reports that the gas tariff in Tbilisi is 0.46 GEL per cubic meter, while it equals 0.57 GEL in the regions.

The GNERC has recently left the gas tariff unchanged.

"We have maintained the social tariff for gas, and it will remain unchanged over the next three years. State aid became possible due to the share of gas return, which led to the maintenance of gas prices. This assistance helped to balance the difference between tariffs and, therefore, there was no need for an increase. For gas supplied to gas distribution companies, the state, in this case, the Oil and Gas Corporation, subsidized the price using its gas. That is, the corporation will not receive the gas it is entitled to, and the profit, which amounts to several million GEL, will be used to subsidize gas tariffs over the next three years," GNERC Chairman David Narmania said earlier in July.

For the past six months, GNERC has held negotiations with SOCAR Georgia Gas, which should affect tariffs for the population. The case refers to $150 million, was spent by the Azerbaijani energy company on investment projects in Georgia.

Notably, one of the largest gas distribution companies in Georgia, SOCAR Georgia Gas, reduced the tariff for bakeries and bakeries by 0.10 GEL in April and May 2020.

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