The Parliament of Georgia has passed a law granting the Georgian National Energy and Water Supply Regulatory Commission (SEMEK) the authority to establish tiered tariffs for water and natural gas based on consumption volumes. Lawmakers reviewed and approved the bill through an expedited procedure.
Under the decision, SEMEK will be entitled to set consumption-based tiered tariffs for residential customers: for water supply until January 1, 2036, and for natural gas until January 1, 2038.
Currently, natural gas tariffs for residential consumers are determined based on the operational zones of licensed distribution companies, with the cost per cubic meter of gas remaining flat regardless of the volume consumed.
According to the explanatory note accompanying the bill, the envisaged amendments do not affect the fundamental principles of tariff regulation and serve as a transitional mechanism aimed at mitigating social risks and phasing in tariff adjustments for various consumer categories.
