Differentiated Electricity Tax to Be Introduced in Tbilisi

(Tbilisi, August 8, 2003, Civil Georgia) – The National Electricity Regulation Commission of Georgia elaborated a draft on differentiation of electricity tax, which has already been submitted to the Justice Ministry for consideration.

According to the draft Tbilisi residents, which consume 100 kilowatt per month have to pay 12.18 Tetri (5.7 Cents) per kilowatt; while those who consume from 100 up to 200 kilowatt – 13.7 Tetri (6.4 Cents); 15.1 Tetri (7 Cents) – from 201 to 400 kilowatts and residents consuming more than 400 kilowatt will pay 16.8 Tetri (7.8!
Cents) per kilowatt of electricity. Current electricity tax in Tbilisi is 12.18 Tetri.

“The draft does not violate ruling of the Constitutional Court from December 2002 on ceasing electricity rate increase, since the interests of social strata are taken into account. The IMF recommendation, which considers definition of tariff under economic calculations, was also taken into account,” Spokesperson for the National Energy Regulatory Commission Tamar Noselidze told Civil Georgia.

Last December Constitutional Court ruled positively on Labor Party’s appeal demanding to obstruct increase tax on electricity. However Georgian authorities had to increase the tax as after the recommendations issued by the IMF mission in early June.  

Under calculations, above 200 thousand residents of Tbilisi consume 100 kilowatts of energy. However as the experts say this number significantly increases during the winter period, when the elec!
tricity consumption increases.

The Justice Ministry sh!
ould discuss the draft within two weeks and return it to the Commission with remarks attached. 

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