Georgia must raise electricity tariffs to avoid a deeper crisis in the energy sector, according to Maia Melikidze, Executive Director of the Renewable Energy Development Association. She warns that if the national regulator GNERC does not approve a tariff increase, the already strained grid will deteriorate further, resulting in more frequent outages across the country.
Melikidze explained that Georgia’s distribution network is outdated, largely inherited from the Soviet era, and repeated repairs are no longer sufficient. Without a major upgrade of transmission infrastructure, she said, even new power generation facilities will be useless because electricity will not be able to reach consumers. It is time to replace the infrastructure completely, not just patch damaged sections,” she emphasized, adding that postponing investment will worsen the crisis, especially during winter and summer peak periods.
According to Melikidze, the last tariff adjustment, when prices dropped by 3 tetri, left the sector unable to invest in critical upgrades. She believes the regulator is fully aware of the urgency and expects a tariff increase to be approved, calling it essential, objective, and unavoidable for the sector’s survival.
GNERC is scheduled to issue its decision on tariff corrections at the end of March. The regulator initially planned to review tariffs in December 2026 but introduced a temporary three-month extension of current rates while final parameters are clarified. The last official tariff change occurred in 2023, when electricity prices for households and businesses were reduced by 3 tetri.
