20.Jun .2022 18:00

GNERC Wants To Set Gas Tariffs For The Businesses As Well

GNERC Wants To Set Gas Tariffs For The Businesses As Well
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The National Energy and Water Regulatory Commission (GNERC) wants to set gas tariffs for non-household customers as well. As commission chairman David Narmania told BMG, if the commission sets tariffs for commercial customers in the gas sector, it will make the process more transparent.

"Since 2007, the natural gas tariff for the commercial sector has been deregulated. Accordingly, companies notify customers of the price increase one month in advance. They have no other obligation - the same is even with regard to price transparency. If the regulatory commission had this function, the tariff structure would be open and transparent. As you know, the tariff is set by the regulatory commission through public administrative proceedings. Thus, the tariff would be determined by a special formula here as well. Since today the energy companies set their own tariffs for the commercial sector, on the one hand, they have no obligation of openness and transparency, and on the other hand, this is their commercial secret. Consequently, consumers do not know what is included in the gas price or what the tariff structure is," Narmania said.

According to him, if the relevant agencies approve the legislative changes, it will take several months for the commission to set a new gas tariff for commercial customers.

"If this function is handed over to the regulatory commission, it will take several months to prepare the methodology and new rules. After that, it will be possible for the commission to set this tariff," Narmania said.

In late May, gas suppliers Tbilisi Energy and SOCAR announced tariff growth. In particular, from July 1, the price of gas for non-domestic customers will be set at 1.35 GEL per cubic meter, including value-added tax. This means an increase of 25 tetri. As for SOCAR, after the increase by 23 tetri, the price of non-domestic gas in the regions will be 1.38 GEL, including VAT.