| 2004-09-23 |
Îïóáëèêîâàíî: The Messenger, #181 |
Because of the strengthening lari rate, the Georgian National Energy Regulatory Commission (GNERC) has called for a reduction of Tbilgazi natural gas tariffs. The commission has twice told Tbilgazi to reduce its tariffs, but while Tbilgazi, which distributes gas to the capital, has agreed to do so, it is against reducing its share of the tariff.
The regulatory commission has already reduced the tariff of ITERA, which distributes natural gas to Georgia's different regions, as a result of which consumers will pay around two tetri less per cubic meter. However, recent fluctuations in the lari rate have delayed the promulgation of Tbilgazi tariffs.
Tbilgazi sells one thousand cubic meters of natural gas for GEL 270. Of this, Tbilgazi's share amounts to GEL 76. According to Alia, the regulatory commission says that only if Tbilgazi can prove that it needs additional resources to rehabilitate the network, consumer tariffs will remain at their current level.
Meanwhile, the regulatory commission has problems of its own. There exists a draft law that envisages uniting the regulatory commission with the oil and gas resources regulatory state agency. The commission is against such a union, on the grounds that the agency and commission perform absolutely different functions.
The regulatory commission considers itself an independent body, not subordinated to any state body. The function of the regulatory commission is to regulate what is a natural monopoly on distribution. It is committed to regulating the activities of the distribution companies, whereas the oil and gas resources regulatory agency is a state-owned unit that issues permits on oil or gas exploration.
24 Saati reports that the regulatory commission thinks that uniting the two bodies needs to be considered very seriously because subordinating the energy regulatory commission to the state administration will send a very bad message to potential investors.
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