TBILISI, JULY 22 2015 (The Conway Bulletin) — Georgian state regulators approved a price increase for electricity, a rise that will irritate consumers and also the power companies who said the rise was not enough to cover the cost of production.
Electricity prices have become a major political issue across Central Asia and the South Caucasus because falling local currencies have forced up the cost of imports needed to fuel power stations.
In Armenia, thousands of people have protested for weeks about a sharp increase in electricity prices.
Perhaps mindful of the political fallout, Georgia’s regulators tried to limit price increases. The price rises appear to vary enormously between 2% and 30% depending on consumers’ overall annual use.
Zurab Gelenidze, CFO of Georgian Industrial Group, said the price rises were not enough. “The sustainability of the entire system will become questionable,” he told media.
Also reacting to the price rises, PM Irakli Garibashvili said the government would give out subsidies to some lower income families.
ENDS
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(News report from Issue No. 241, published on July 23 2015)