Georgia Moves to Let Regulator Set Tiered Gas and Water Tariffs

Georgia's parliament on 27 October passed in first reading a bill that would let the energy regulator set household gas and water tariffs that rise with consumption, DFWatch reported. Tiered gas tariffs would be allowed until 1 January 2038 and tiered water and wastewater tariffs until 1 January 2036.

The bill amends the Law on Energy and Water Supply and is being considered under an expedited procedure, according to Georgia Today. It was initiated by six members of the parliamentary majority, among them Shota Berekashvili, whom DFWatch identified as chairman of parliament's Economic Policy Committee.

The Georgian National Energy and Water Supply Regulatory Commission (GNERC) would be authorised to introduce tiered household tariffs during a transitional period, with basic consumption charged at a relatively lower rate and higher consumption at different rates, Georgia Today said. The bill does not set prices itself; GNERC would decide the final rates, DFWatch reported. The 2019 Law on Energy and Water Supply already defines a tariff as "the price of goods and services established by the Commission".

Why the deadlines matter

The current tariff periods expire at the end of December 2026, and GNERC plans to review gas and water tariffs at the end of this year, according to DFWatch. Electricity tariffs will not be reviewed then, because they were set earlier in 2026. Household electricity has had tiered tariffs since 2003, JAMnews noted.

Georgia Today said the new deadlines match the regulator's tariff cycles of three years for water and five years for gas. The bill would also extend the commission's power to distribute water and wastewater costs among consumer categories in different proportions, from 1 January 2027 to 1 January 2036. The explanatory note says the changes are meant to protect household consumers, including vulnerable groups, and to introduce tariff changes gradually, and that the basic principles of tariff regulation stay the same.

Where prices stand

Berekashvili put the average household gas price in Georgia at 55 to 56 tetri per cubic metre, DFWatch reported, with Tbilisi households paying 53.971 tetri. Metered water costs 0.50 lari per cubic metre. Water tariffs currently differ between metered and unmetered consumers, Georgia Today said.

Georgia depends on imported gas. CBJ reported in July that Georgia expected to import 3.34 bcm of gas in 2026, with Azerbaijan supplying 88%. Energy costs have also fed inflation: the National Bank pointed to energy prices when it held its policy rate at 8.25% in June.

What it means for business

A tiered structure moves more of the bill onto heavy users while keeping a cheaper base block, so the same average tariff can produce very different bills from one household to the next. For gas distributors and the water utility, it offers a way to raise revenue from higher consumption without a single increase for every customer. How far the burden shifts depends on the size of the basic block and the price steps above it, which GNERC will set and which are not yet public.

The timing ties the bill to the regulator's next decisions. If parliament completes the remaining readings before the current periods expire in December, the year-end gas and water reviews could be the first to use the new power.

What to watch

• The second and third readings of the bill.
• GNERC's year-end gas and water tariff decisions and the size of the basic consumption block.
• Whether the regulator publishes how many households would fall into each tier.

Sources: DFWatch, 27 October 2026; Georgia Today, 27 October 2026; Law of Georgia on Energy and Water Supply, Legislative Herald of Georgia (Matsne); JAMnews, 28 October 2026.