The Georgian opposition is now trying to use authorities’ decision to increase electricity tariff as a reason for staging anti-governmental protest rallies.
At a session on May 11 the Georgian National Energy Regulation Commission (GNERC) ruled to increase the price for electricity and to impose a three-step tariff, starting from June 1 citing doubled gas price and operational costs of power companies.
The radical opposition Labor Party, which was always in a forefront of socially-motivated protests, was now joined by the Conservative Party to condemn the decision.
The Labor Party launched protest a day before the GNERC announced final decision about the increase of tariff. 16 activists of the party went on hunger strike in the GNERC’s office on May 10.
GNERC chairman Giorgi Tavadze said on May 10 that he met with Shalva Natelashvili, the leader of Labor Party, to explain reasons behind anticipated electricity price increase.
“The meeting was very constructive. I have explained in details why it has become necessary to increase the tariff and Mr. Natelashvili understood these reasons very well. But after the meeting he was making absolutely different statements in front of the TV cameras,” Tavadze said on May 10.
Also a day before the GNERC’s May 11 session the Conservative Party called on the population to gather outside the GNERC office to protest against the anticipated increase of electricity tariff. But only up to 100 protesters, mainly the Labor and Conservative Party activists gathered at the rally. Opposition seemed disappointed.
“It seems that the people do not yet realize the threat of this decision [increased price]. I guess everyone will understand it after they receive [electricity] bills,” MP Zviad Dzidziguri of the Conservative Party said.
After the GNERC announced its final decision leader of the Conservative Party MP Koba Davitashvili accused authorities of being “unprincipled” in relations with Russia. He said that the authorities yielded to the pressure exerted by the Russian United Energy Systems (UES) and agreed to increase the price. The UES owns Telasi – company which distributes electricity in the capital Tbilisi.
“This is a decision which will foster corruption deals; we will never tolerate this decision. We will appeal the Constitutional Court, because people won’t be able to pay this tariff. This is immoral government, because while they [authorities] are boasting and say that they are principled and are not yielding to Russian pressure, they are letting the Russian state company [UES] to get rich at the expanse of the Georgian people,” MP Koba Davitashvili, leader of the Conservative Party, told reporters.
GNERC agreed to increase share of Telasi in the newly set tariffs only by 0,8 Tetri instead of 10 Tetri demanded by the Telasi. Telasi’s share will now be 7,9 in the new tariff.
“We will appeal the Constitutional Court; but the most important is to get rid of source of evil – this is resignation of Saakashvili’s administration; this should become a nation-wide consensus and we should rally outside the Parliament,” Giorgi Gugava of the Labor Party said on May 11.
But the authorities are downplaying the opposition’s these calls.
“The only reason why it became necessary to increase electricity tariff was Russia’s politically motivated decision to increase gas price for Georgia and the people know this very well and that is why [people] react on this very adequately,” Prime Minister Zurab Nogaideli told Imedi TV on May 11.
In almost all of his recent public speeches President Saakashvili speaks of Russia’s decision to increase gas price and blames Moscow of pursuing a policy aimed “to make every Georgian family suffer.”
Three-Step Tariff
As a result of the GNERC’s May 11 decision three-step electricity tariff will be introduced starting from June 1.
Those residents of Tbilisi who consume less than 100 kilowatts of electricity per month will have to pay 13.48 Tetri (approximately 7.4 cents) per kilowatt instead of 12.8 Tetri (approximately 7.03 cents).
Consumers using between 100 to 300 kilowatts per month will pay 16 Tetri (approximately 8.79 cents) and those consuming more than 300 kilowatts per month will pay 17.69 Tetri (approximately 9.7 cents).
According to the GNERC, about 60-65% of Tbilisi residents consume less than 100 kilowatts of electricity per month.
Consumers living outside Tbilisi, who use less than 100 kilowatt per month will pay 12.98 Tetri (approximately 7.1 cents) instead of 8 Tetri. Residents in the country’s regions who consume between 100 and 300 kilowatts – 16.52 Tetri (approximately 9.07 cents) and residents in the regions who consuming more than 300 kilowatts per month will pay 17.49 Tetri (approximately 9.6 cents).
About 80% of residents in the regions consume less than 100 kilowatts of electricity per month, according to the GNERC.
Officials say that the increase of the electricity tariff was unavoidable after Russia increased the gas price for Georgia from USD 63 to USD 110 per 1000 cubic meters in January.
According to the GNERC, last year share of gas-generated electricity in Georgia totaled to 12%, while the rest was generated by hydro power plants.
“This share will increase this year and thermal power station will produce up to 30% and electricity generated by the hydro power plants will be 70%,” Giorgi Tavadze, the chairman of National Energy Regulation Commission, said.
In April the Parliament passed amendments to the tax code, which provided VAT exemptions for gas imported solely for generating electricity.
At a news conference on May 11 Energy Minister Nika Gilauri said that the government allocated over GEL 100 million to subsidize the increased energy tariffs for consumers during the winter period. “But this could not last forever,” he added.
The Energy Minister also said that the government will subsidize the increased electricity tariff for about 400,000 of the country’s most socially vulnerable families.
“For these families the increase of the tariff will equal zero,” Gilauri added.
He also said that the government has spent over GEL 350 million over the past two and a half years to rehabilitate the country’s energy system.