Page 66 - GEORptNov21

inflation
Georgia’s electricity consumption down 5.5% in 2020
National Energy Regulatory Commission (GNERC).
The move will further push up headline inflation, which in April stood at 7.2%, unchanged from March. Rising inflation has already forced the monetary authority to increase its key interest rate to 9.5%. The National Bank of Georgia (NBG), citing a rather bleak inflationary outlook generated by overlapping domestic and external factors, hiked the key rate, namely the refinancing rate, on April 28 by 1pp, following the 0.5pp it added in March. The resultant and rather hawkish 9.5% rate is the highest seen in Georgia for several years.
The current gas tariff entered into force on January 1, 2020, and was meant to apply until the end of 2022.
GNERC said that the hike was necessary to ensure a “safe and reliable” gas supply to the capital.
Tbilisi Energy requested the rate increase, citing a GEL25mn ($7.6mn) loss incurred over the past year and a half due to currency depreciation. The company said it has also asked to calculate the gas price in the national currency in the months ahead to “protect the population” against price increases in relation to exchange rate fluctuations.
Earlier, on January 3, the company's gas price was increased by 31% to GEL1,100 ($333) per thousand metres for commercial users.
Tbilisi Energy supplies gas to around 1.5mn people and 18,000 commercial users.
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.
9.1.13 Defence sector news
PM Gharibashvili unveils Georgian-Israeli rifle production plant in Georgia
A joint Georgian-Israeli rifles production plant was launched in Georgia, with Georgian Prime Minister Irakli Gharibashvili presenting the new facility for making carbines similar to the American M4.
Unveiling the factory a year after he initially revealed plans for it, Gharibashvili spoke to reporters. The Delta CCA Arms plant is a joint facility involving the local Delta company of arms and hardware production and Israeli partners. Equipped with factory machines built in the US, the production will make GI-4 carbines - rifles similar to the 5.56 Nato-calibre M4 that has become ubiquitous among US armed forces and troops in dozens of other countries, including the Georgian Defence Forces.
The Georgian PM told local press all parts of the carbine would be produced locally by personnel who have undergone relevant training for the project, which was initially started during Gharibashvili's time as defence minister,
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