Georgian Government's decision to eliminate intermediary companies from electricity imports from Azerbaijan and other countries has sparked debate in the energy sector. Energy expert Archil Mamatelashvili argues that instead of banning intermediaries, the government should establish transparent, competitive market mechanisms that make their involvement unnecessary.
Speaking to BMGTV’s program Tsertili, Mamatelashvili said intermediary companies must have served some purpose, given that buyers and sellers were willing to pay them. He questioned why Georgian buyers could not deal directly with Azerbaijan suppliers, suggesting that bureaucratic barriers or other obstacles may have made intermediaries necessary. He also noted that he did not know precisely why the companies emerged in 2016.
Mamatelashvili said reducing intermediary costs could lower the cost of electricity imports and benefit the energy market. However, he argued that transparent tenders, easier access to suppliers or a dedicated trading platform would be preferable to an outright ban. Such mechanisms could allow buyers and sellers to connect directly while improving competition and reducing unnecessary costs.
Prime Minister Irakli Kobakhidze has said removing intermediaries could save Georgia approximately 0.2 US cents per kilowatt-hour. Mamatelashvili believes the move could reduce electricity costs, but does not expect a significant decrease in consumer tariffs, which are regulated. He said any savings could instead be directed toward essential capital investments to maintain the energy system’s reliability, including repairs and upgrades at facilities such as Enguri HPP.
