Removing intermediary companies from electricity imports is expected to have a greater impact on power prices for large industrial consumers than on household tariffs, according to Giorgi Margebadze, chairman of the Small and Medium Hydropower Association.
Speaking to BMG, Margebadze said the change could reduce the cost of electricity purchased by the Electricity System Commercial Operator (ESCO), lowering wholesale prices. Prime Minister Irakli Kobakhidze has said that eliminating intermediaries allows Georgia to buy electricity from Azerbaijan at $0.2 cents less per unit, generating annual savings of several million lari.
Margebadze said lower wholesale prices would primarily benefit large businesses that purchase electricity directly from ESCO and power generators. The impact on household tariffs remains uncertain, as residential electricity prices are calculated differently and depend on suppliers’ purchasing costs and market shares.
He welcomed the move as a positive step toward cheaper electricity but said the extent of any price reduction would depend on how lower import costs affect the overall wholesale market.
