Project introduces new methodology for electricity tariff

On October 26, the presentation of the project entitled 'European Union, Austria and Georgia: Twinning for updating the electricity tariff methodology' was held at the Sheraton Metechi Palace hotel. The project aims to improve Georgian electricity regulation that promotes long term investments. It will also establish methods of the calculation of the tariff in line with European Union standards and best practices.

Within the framework of the project, the incentive-based electricity tariff regulation will be updated and conditions for its initial implementation will be prepared. GNERC will need to strengthen its capacity in order to ensure the adoption of the new conditions. In this process, GNERC will be assisted by the Austrian energy regulatory authority. Its objectives are to increase the knowledge and skills of GNERC’s management and its stand in the electricity sector regulation with specific reference to incentive-based electricity tariffs, benchmarking, data monitoring and management and quality of service regulation in line with the EU acquis and best practices.

The project has three components: Capacity building and project management: This component will introduce each part of the methodology and develop or reinforce GNERC’s understanding in the purpose of each part of the process; Updating of incentive based tariff methodology and benchmarking. This component aims is to support GNERC in moving away from cost of service type regulation of the electricity sector towards an incentive-based approach; creation of technical economic and organizational preconditions. This component will prepare and incentive the tariff simulation model. It will also support GNERC with the improvement of its quality of service activities and prepare recommendations for GNERC for a better organized and integrated data and information management system.

The ceremony was opened by the welcoming speech of Dietmar Preinstorfer, MS project leader. The ceremony was attended by the HE EU Ambassador to Georgia Philip Dimitrov, Honorary Council of Austria Eva Berger.