Businesses in Georgia are assessing whether rising electricity tariffs will force an increase in product prices. Aleksandre Ratishvili, director of bakery and confectionery producer MBC Georgia, told BMG that although their production relies more heavily on natural gas, electricity remains a significant cost component.
Ratishvili noted that companies will need one to two months to recalculate expenses and understand the actual financial impact. If losses become unavoidable, price adjustments may follow. However, he emphasized that the effect will vary widely: companies heavily dependent on electricity may face substantial cost increases, while gas-reliant producers may feel a milder impact.
According to him, no business can operate at a loss. “If there is no other option, we will have to make corrections and increase prices,” Ratishvili said, adding that each manufacturer will independently decide whether and when to adjust prices.
The comments follow GNERC’s decision to raise electricity tariffs starting April 1. Household consumers will see a 5-tetri increase, while commercial users face a 4-6 tetri rise depending on consumption levels.
