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Electricity Transit Tariff Should Be Regulated by GNERC, Not State Company – Margvelashvili

მურმან მარგველაშვილი

Energy expert Murman Margvelashvili argues that the responsibility for setting Georgia’s electricity transit tariff should rest with the State Electricity System of Georgia, rather than the state electricity transmission company. He emphasized that Georgia’s transmission lines are mainly used by Azerbaijan to export electricity to Turkey, making tariff regulation a matter of national interest.

Transit volumes, however, have sharply declined. After a record year in 2023, electricity transit decreased by 69% in 2024. The downward trend continued in 2025, with the total transit volume in the first six months falling to 335 million kWh, a 16% drop compared to the same period last year.

Margvelashvili recalled that a few years ago, legislative changes transferred tariff-setting powers to the transmission company itself, which he believes was a mistake. “As a result, they lowered the tariff. The budget received only meager income, while intermediary companies benefited,” he said.

According to him, only the Georgian National Energy and Water Supply Regulatory Commission can ensure that the state’s interests are protected. “Transit from Azerbaijan or Russia to Turkey has been ongoing for years, but the tariff is the Commission’s function. The state and the state company must protect their own interests properly, and that requires regulatory oversight,” Margvelashvili stressed.

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