Natural gas tariffs to be determined based on volume consumed

The parliamentary Economic Policy Committee reviewed the legislative amendment to the Georgian Law on Energy and Water Supply.

According to the amendment, the Georgian National Energy and Water Supply Regulatory Commission (GNERC) will be authorized to determine the natural gas tariffs for household consumers based on the volume consumed in the transitional period.

Under the current system, the natural gas tariff for household consumers is determined based on the operational areas of the distribution licensees; consumers pay a single rate for the gas they use, regardless of the volume consumed.

The necessity for this change stems from the need to protect the social interests of socially vulnerable consumers and to maintain access to basic services and products. The amendment envisaged by the draft law does not alter the fundamental principles of tariff regulation; rather, it serves as a mechanism applicable only during a transitional period, aimed at mitigating social risks and facilitating the gradual implementation of tariff adjustments across different consumer categories,” reads the draft bill.

The GNERC is expected to determine the new model of tariffs in December.