Georgian economists forecast rise in prices for goods after increase in tariffs

In Georgia, tariffs for supply of electricity and tap water will rise on January 1, 2018. The State Commission has explained the growth of tariffs by the need for repair and development of pipelines and power grids. After the increase in tariffs, prices for goods will also rise, economists noted.

On December 27, the Georgian National Regulatory Commission for Energy and Water Supply pronounced the decision to increase the tariff for electricity supply. Depending on the total amount of electricity consumed, residents of Tbilisi will pay 7-12% more. The tariff will be valid until late 2020.

David Mirtskhulava, the former chairman for the Georgian National Regulatory Commission, believes the increase in tariffs for electricity is justified. According to him, the money will help enhance the reliability of power grids.

The tariff for electricity has increased due to an oversight of the authorities, believes Mikhail Tokmazishvili, Doctor of Economic Sciences, a former member of the Council for the National Bank of Georgia. He has told the "Caucasian Knot" correspondent he sees the reasons for the increase in the cost of electricity in the lari devaluation and the authorities' increase in the excise tax on energy resources.

Mikhail Tokmazishvili has noted that after the increase in tariffs, the prices for goods will rise significantly, and that will affect the poor segments of the population.

The prices for goods will begin to grow right after the New Year holidays, believes Paata Seshelidze, President of the "New Economic School". According to him, the increase in prices will be painful for all segments of the population.

Full text of the article is available on the Russian page of 24/7 Internet agency ‘Caucasian Knot’.