Retail tariffs are set by the Georgian National Energy and Water Supply Regulatory Commission (GNERC) under a predefined and transparent methodology. The current increase is mainly driven by two factors: higher investment plans and rising electricity procurement costs.The tariff increase directly raises utility costs for both households and those businesses that purchase electricity on the retail market. In our view, the change will also have several additional effects:  The tariff increase will add around 0.7 percentage points to the overall price level (inflation). Higher investment spending will support infrastructure upgrades and help reduce outage frequency, especially in the regions. More expensive electricity will strengthen business interest in self-generation, as was seen after the sharp tariff increase in 2021. Rehabilitation of the transmission network and substations may also reduce grid-connection costs for small power plants. It is important to note that the change in the retail tariff does not determine the selling price of power plants. Given the structure of Georgia’s electricity market, generation assets sell electricity on the wholesale market, while the retail tariff is formed on the basis of those underlying costs. Accordingly, wholesale prices change first, and the retail tariff then reflects these changes.The retail tariff mainly consists of 3 parts - the transmission infrastructure tariff, the electricity procurement cost, and state taxes. The first two components made the largest contribution to the increase in the final retail tariff.1. Infrastructure componentThe infrastructure component reflects the cost of rehabilitation, reinforcement, and expansion of transmission lines, substations, and the distribution network. Accordingly, in both distribution areas, a significant part of the tariff increase is linked to higher investment in the grid.In the regions, a major factor is Energo-Pro Georgia’s 2026-30 investment plan. During this period, the company will invest about GEL 200 mn per year on average, amounting to more than GEL 1 bn in total. The main purpose of these investments is to rehabilitate the network, improve service quality, and reduce outages.In Tbilisi, more than GEL 400 mn of investment is planned in the Telasi network over the next 5 years. These funds will be directed toward connecting new districts to the grid, replacing old meters, and upgrading existing infrastructure.In addition, an important part of the infrastructure component is the tariff of the Georgian State Electrosystem (GSE), which was already increased in 2025 and remains in force through end-2026. At the same time, GSE plans to update its investment plan this year, which may become an additional, though relatively small, source of tariff pressure in the coming years.2. Electricity procurement costThe second main component of the tariff is the price at which suppliers purchase electricity. This component increased for several reasons: Electricity consumption is rising, and additional demand is met by relatively expensive resources. Another important factor is the increase in the Enguri and Vardnili tariffs. Their tariff rose by 66% from January 2025. These plants are among the cheapest resources in the system and play an important role in keeping household tariffs relatively low. However, the share of Enguri-Vardnili in meeting retail consumption has been declining over time, driven by higher consumption, hydrological conditions, and demand dynamics in Abkhazia. In addition, the tariffs of Khrami 1 and Khrami 2 increased from 2026. These plants’ government-agreed tariff 4 Georgia │ Energy Retail tariff growth April 1, 2026 arrangements expired, and they moved under GNERC regulation, which resulted in higher tariffs. The price and volume of balancing electricity purchases also increased. This was driven by the removal of gas subsidies for thermal power plants, more expensive imports, and the commissioning of new plants. Accordingly, the increase in the retail tariff cannot be explained only by grid investment costs - a key factor is also the rise in electricity procurement costs. 3. VATThe final retail tariff also includes value added tax, which is directed to the state budget. 

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According to the Ministry of Environmental Protection and Agriculture, a further restriction on plastic consumption also enters into force today. Specifically, public procurement bodies are henceforth prohibited from purchasing plastic cups, containers, or beverages bottled in plastic vessels of up to three litres. The restriction does not apply to the procurement of drinks in plastic bottles of up to three litres where such purchases are made for the needs of the defence forces and military personnel.Compliance with these regulations will be overseen, within their respective remits, by the National Food Agency, the Department of Environmental Supervision, and the Revenue Service of the Ministry of Finance.Under the Code of Administrative Offences of Georgia, violations of the requirements set out in the decree will carry a fine of 1,000 lari and confiscation of the relevant goods; repeat violations will attract a fine of 2,000 lari and confiscation.“It is important to note that the regulation does not apply to the export of plastic products. Manufacturers producing goods for export are required to notify the Department of Environmental Supervision in writing, at least one month before commencing production, of the proposed start and end dates of production, the quantity of goods to be manufactured, the destination countries, and the intended export schedule,” the Ministry of Environmental Protection and Agriculture stated.

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At a municipal government meeting held on Wednesday, Kaladze noted that three Turkish and one Chinese companies are among the bidders. The project, which is being implemented in accordance with the procurement rules of the Asian Development Bank (ADB), is financed from the state budget.“All four bidders are quite large and experienced companies that have implemented a number of similar projects. A detailed analysis of the documentation has begun, after which the winner will be identified and a contract will be signed,” Kaladze said.The main parameters of the project are as follows: Route: from microdistricts 3 and 4 of Didi Dighomi to metro station “Didube” Length: approximately 7.5 kilometers Infrastructure: 11 stops and a depot, which will serve 11 trams Timeline: The project is in three stages (concept, detailed design, construction) and its total completion period is 36 months The new tender process began after the first tender announced in October 2025 was canceled due to the need to adjust technical parameters.The construction of the tram line is part of the Tbilisi Transport Development Plan, which was prepared by the Danish consulting company Ramboll. The project aims to integrate the densely populated district of Didi Dighomi into the city’s transport network and reduce travel times.The tram system in Georgia was completely dismantled during the previous government, making this project the first such initiative in the history of independent Georgia.

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DemandIn Feb-26, demand remained solid on both primary and secondary markets, indicating strong start of the year and following the trend from 2H25. On the supply side, the living area of issued permits continued to fall for the 5th month in a row, signalling a normalization after previously elevated levels. Prices continued to grow with accelerated pace on both primary and secondary markets, supported by strong demand and slower permit issuance.Demand In Feb-26, total number of sold apartments in Tbilisi, according to the Public Registry data, stood at 3,822 units, of which:• Sales on the secondary market increased significantly by 19.2% y/y to 1,864 (up 8.6% y/y in 2M26).• Sales on the primary market, where data are impacted by delayed registrations, was up 11.2% y/y to 1,958 (up 7.8% y/y in 2M26).G&T’s real-time survey of developers, which captures current trends on the primary market, shows a significant 26.6% y/y increase in Feb-26. Cumulatively, primary market sales were up 24.1% y/y in 2M26. This largely reflects a low base effect from last year, driven by domestic political instability in Tbilisi. In total, 6,786 transactions were registered in Tbilisi in 2M26, bringing the residential market value to US$ 595mn (+16.7% y/y).SupplyIn Feb-26, construction permits were issued for 10 residential projects, with total living area reaching 60,283 sq.m (-44.7% y/y). Notably, the living area of issued permits has contracted for the 5th consecutive month, suggesting easing supply pressures after periods of high issuance. Overall, living area of permits in 2M26 was down 50.7% y/y.Prices In Feb-26, primary market price continued to rise with high growth rate, increasing by 0.9% m/m to US$ 1,398 per sq.m. The average price on the secondary market (for new buildings built with permits issued from 2013) was up 0.6% m/m, reaching US$ 1,304 per sq.m.RentsIn Feb-26, price for renting an average (50-60 sq.m) apartment in Tbilisi was at US$ 10.1 per sq.m (-1.8% m/m), keeping rental yield high at 8.6%.

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In February 2026, compared to the same period of the previous year, the estimated real growth in following activities contributed significantly: Information and communication, Transportation and storage, Financial and insurance activities, Manufacturing, Mining and quarrying.Decline were registered in Construction and Energy sectors.

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Specifically, subscribers living in Tbilisi, who used to consume from 0 to 101 kilowatts of electricity per month and paid 15,041 tetri per kilowatt, will see their tariff increase to 20,041 tetri from April 1.As of today, the consumer tariffs are as follows:Tbilisi – from 0 kWh to 101 kWh inclusive and with a common consumption meter (household) – 15,041 tetriFrom 101 kWh to 301 kWh inclusive (household) – 19,053 tetriFrom 301 kWh and above (household) – 23,537 tetriRegions – from 0 kWh to 101 kWh inclusive and with a common consumption meter (household) – 14,731 tetriFrom 101 kWh to 301 kWh inclusive (household) – 18,708 tetriFrom 31 kWh and above (household) – 23.227 tetriThe Chairman of the Georgian Electricity Regulatory Commission, David Narmania, made a statement about the possible increase in electricity tariffs back on December 17, 2025. However, at a session held on December 29 of the same year, the Regulatory Commission changed the decision and extended the validity period of the existing tariffs by 3 months, until March 31, 2026.According to David Narmania, the postponement of the tariff change was due to several main factors: Applications from energy companies Unspecified electricity balances Consultations with the Government of Georgia As for natural gas, according to the decision of the Georgian Electricity Regulatory Commission, the tariff applicable to the mentioned resource will remain unchanged for one year and will be in force until December 31, 2026.

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Before the meeting, Commission Chairman David Narmania explained the main components that influenced the tariff formation. According to him, one of the regulator’s main priorities is to minimize the number of accidents and power outages in the regions.According to Narmania, several important circumstances were taken into account when calculating the tariff:Investment component: In order to regulate the network in the regions, it is necessary to continue investment projects (in particular, by the company "Energo-Pro"), however, according to Narmania, it is important that these investments do not have a "significant impact" on the tariff.Dependence on imports: Electricity consumption in the country is constantly growing, which increases dependence on expensive imports. This directly affects the cost of energy.Energy balance: The commission specified the volumes of energy to be generated by generation facilities, which made it possible to determine the price for each type of station."The Department of Tariffs and Economic Analysis will present a presentation that will address both the impact of the investments made and the reflection of energy balances and supply components in the final cost," the Chairman of the Commission noted.Previously, the electricity tariff review was scheduled for December 2025. Davit Narmania had been announcing the expected price increase for months due to infrastructure needs, however, after Prime Minister Irakli Kobakhidze’s statement, who expressed hope for the tariff to be maintained, the commission decided on December 29 to extend the current tariffs for 3 months.Electricity tariffs were last changed in 2023, when the Commission reduced the tax for businesses and the population by 3 tetri.

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In 2025, the largest number of live births was recorded in Tbilisi (14 334) while the smallest – in Racha-Lechkhumi and Kvemo Svaneti Region (191).Compared to 2024, in 2025 the share of the first order births in total live births increased from 35.9 percent to 36.6 percent. The share of the second child decreased and equaled 32.9, while the share of the third and next order births remained almost unchanged and equaled 29.1 percent.Compared to 2024, in 2025 the share of live births for women aged 25-39 increased (from 69.5 percent to 70.4 percent) and decreased for women aged less than 25 (from 23.2 percent to 21.9 percent), while increasing for women aged 40 years and older (from 7.3 percent to 7.7 percent).In 2025, the number of deaths increased by 0.8 percent in annual terms and totaled 44 319 persons. The largest number of deaths was recorded in Tbilisi (12 743) while the smallest – in Racha-Lechkhumi and Kvemo Svaneti Region (585).According to the 2025 data, infant mortality rate (per 1 000 live births) equaled 7.6 ‰. The under-5 mortality rate (per 1 000 live births) in 2025 totaled 9.1‰.According to the 2025 data, the negative natural increase was stated in Georgia (the difference between the number of live births and the number of deaths) equaling -6 452. A negative natural increase was registered in all regions except Tbilisi, Adjara A.R. and Kvemo Kartli region.In 2025, 22 285 marriages have been registered, which is a 2.9 percent increase from the corresponding figure of the previous year. The mean age of first marriage in 2025 equals 30.1 years for females and 32.4 years for males.The number of divorces in 2025 equaled 13 173 decreasing by 2.6 percent compared to the previous year.

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According to the documentation, the change in the location of the gas pipeline is related to the request of the Armenian side, since the Armenian section of the pipeline is located in the trilateral border zone of Georgia, Armenia, and Azerbaijan and was mined in the 1990s.According to the justification for the relocation, based on the fact that it is impossible to maintain minimum safety standards and carry out repair work on the given section, it was decided to remove the problematic section of the gas pipeline from the mined zone and build a new pipeline at a safe distance, based on a trilateral intergovernmental agreement.The gas pipeline will be moved several kilometers and will connect to a new pipeline laid by the Armenian side.

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