Page 57 - GEORptMar21

Georgia’s electricity consumption down 5.5% in 2020
Georgia obtains ADB water supply, sanitation loans
weakening of the local currency in recent months, and despite paying for its gas in dollars. Unfortunately, it added, the price inaction was no longer feasible.
The regulated natural gas price charged to households will remain at GEL0.46 per cubic metre.
Sandro Ratishvili, chairman of the Georgian Taxpayers' Union, said he was shocked by the price hike. According to him, if enforced, it would result in massive bankruptcies.
Electricity prices for non-residential users also increased sharply in January. Georgian companies, excepting bakeries and, to an extent, food producers, are to pay 70% more on average for electricity. Market regulator GNERC approved requests for the electricity price move filed by the energy distribution companies.
The power hike was also inevitable, Mariam Chakhvashvili, senior analyst at Galt & Taggart, told Business Media.
"It was expected that the tariffs would increase when we looked at the situation of the [utility] companies. At a [GNERC] meeting, some expenses were still not taken into account, GNERC was very strict and pressed as much as possible when it came to the expenses that the company had. GNERC has set the limit exactly, at least I hope so," Chakhvashvili said.
Chakhvashvili added that the companies wanted the tariffs to be increased by a higher amount, but GNERC did not agree to their requests.
Electricity generation and consumption in Georgia dropped by 5.8% and 5.5%, respectively, in 2020, in line with lower economic activity. According to the Georgian electricity market operator "Esco", total generation last year amounted to 11.16 TWh, equivalent to 5.8% less than in 2019, when total output was 11.86 TWh.
Production decreased particularly at the county's hydropower plants, which account for the largest part of total generation.
The amount of electricity generated by Georgia's thermal power plants edged down by less than 1% to 2.82TWh. In the case of the hydropower plants, the reduction was measured at nearly 7.7% for a total of 8.25 TWh, accounting for nearly 70% of the electricity generation.
The electricity generated by the Kartli wind farm increased from 84.7mn kWh to 90.8mn kWh year on year, amounting to 0.8% of total generation. Electricity consumption decreased by 5.5% to 12.41 TWh, down from 13.15 TWh in 2019.
The Asian Development Bank (ADB) has approved $150mn in euro-equivalent loans to improve water supply and sanitation services in Georgia and help the government craft an integrated approach to the development of the sector.
Under the Sustainable Water Supply and Sanitation Sector Development Program, ADB will provide a $130mn policy-based loan and a $20mn project loan.
The loan will strengthen the capacity of local governments and the United Water Supply Company of Georgia (UWSCG), a state-owned enterprise, to enable them to adequately meet demand in urban and rural areas.
Water supply consistency in Georgia ranges from four hours to 24 hours per day, posing a significant health risk during the ongoing coronavirus disease (COVID-19) pandemic. About 92% of urban and 64% of rural residents receive piped water, while 84% of urban and 20% of rural residents have access to sewerage systems. Only 36% of the total population benefit from wastewater treatment.
57 GEORGIA Country Report March 2021 www.intellinews.com