Global
Georgia Electricity Tariffs Rise 33% from April 1 as Import Dependency Drives 2 Billion Lari Grid Investment
April 9, 2026
4
Min
Georgia's electricity tariffs rose by up to 33% on April 1, 2026, following a decision by the Georgian National Energy and Water Supply Regulatory Commission (GNERC) that affects both households and commercial consumers across the country. The increase — 5 tetri per kilowatt-hour for residential customers in Tbilisi, with regions following from July 1 — is the most significant tariff adjustment in the Georgian electricity market in recent years and reflects structural vulnerabilities in the country's power supply that have been building for several winters.
According to OC Media, GNERC head Davit Narmania attributed the increase to three converging factors: growing consumption, rising wholesale electricity prices, and Georgia's structural dependence on imported power during winter months when domestic hydroelectric generation falls short. Georgia's year-on-year inflation stood at 4.6% in February 2026, and economist and former National Bank governor Roman Gotsiridze said the energy tariff increase was unavoidable given that higher demand and rising prices had already worked through other sectors of the economy.
For Tbilisi households, the new tariff structure is consumption-tiered. Customers using up to 101 kWh per month now pay 20.04 tetri per kWh, up from 15.04 tetri. Those consuming 101-301 kWh pay 24.05 tetri, up from 19.05. Above 301 kWh, the rate is 28.54 tetri, up from 23.54. In percentage terms, this represents a 33% increase at the lowest tier and approximately 21% at the highest. Commercial sector tariffs rise by 4-6 tetri depending on consumption level and voltage category, ranging from 27.76 to 35.26 tetri per kWh in Tbilisi.
The tariff increase is structurally linked to a significant capital investment commitment. GNERC confirmed that total planned investments factored into the new tariff period amount to approximately 2 billion lari ($746 million), aimed at rehabilitating Georgia's electricity distribution system and reducing the frequency of outages. Energo-Pro Georgia, which operates distribution networks across most of the country outside Tbilisi, will invest an average of 200 million lari ($74.6 million) annually between 2026 and 2030, totalling roughly 1 billion lari. Tbilisi's Telasi will invest a further 400 million lari ($149.2 million) over the same period. An additional 129 million lari in external financing will be deployed without passing costs to consumers.
Separately, the Georgian government announced a write-off of approximately 1 billion lari ($370 million) in accumulated fines for 157 energy sector companies — a conditional amnesty that requires the companies to meet future performance and investment deadlines. The combined package of tariff reform, investment commitment, and fine write-off represents a structural reset of Georgia's electricity sector regulatory framework, designed to break a cycle in which underinvestment and import dependency had made the grid increasingly vulnerable to price shocks.
For businesses operating in Georgia, the tariff increase arrives alongside a Moody's upward revision of Georgia's 2026 GDP growth forecast to 6% — a reminder that the Georgian economy's fundamental momentum remains strong even as specific cost pressures intensify. The energy cost increase will filter through supply chains, particularly for energy-intensive industries, and is likely to add modestly to headline inflation in Q2 2026. The longer-term investment programme, however, addresses the structural import dependency that has been the root cause of tariff pressure — a problem that will only be resolved as Georgia expands domestic renewable generation capacity and reduces its seasonal vulnerability to wholesale market prices.
