Electricity exports in May fell by 73% due to falling prices in Turkey - Galt & Taggart

According to the investment bank, last month the export volume to Turkey amounted to only 36.2 GWh (compared to 172.3 GWh in May 2025), and the income received - $1 million (compared to $7.8 million in the same period last year). The researchers explained that the decline was also due to falling prices - in May, the average export price to Turkey was 2.7 US cents per kWh, which is a decrease of 39.4% year-on-year.Such a decrease in export price, volume and revenue is associated with a sharp decline in prices on the Turkish market. In May 2026, the average electricity price on the Turkish market was 1.8 US cents/kWh (vs. 6.4 US cents/kWh in May-25). Such a low price significantly reduces the economic attractiveness of exports, as exporters also had to cover system-related costs, including transmission tariffs and guaranteed capacity fees.According to the Galt & Taggart study, the difference between the Turkish market price and the average export price from Georgia is likely related to the hourly/daily structure of exports and direct contracts.The decrease in electricity prices in Turkey, in turn, is related to the construction of solar power plants and favorable hydrological conditions.In May, only four companies exported to Turkey: Adjara-Energy 2007 LLC, Energy Development Georgia LLC, Svaneti Hydro LLC, and Kasleti-2 LLC. Despite the low market prices, the continued exports may be related to both the existing transmission and dispatch agreements and the individual contractual conditions of the companies.In addition to Turkey, exports were also recorded in Azerbaijan on the balance sheet, although these were not commercial exports. The mentioned synchronous volume was a technical exchange carried out for parallel operation with Azerbaijan and was balanced by imports of the same volume and value. Since April 2026, the accounting methodology has changed and this exchange, which was previously reflected as a net in the balance, is now recorded in imports and exports.Balancing market and pricesThe average price of balancing electricity in May increased by 3.5% year-on-year and amounted to 5.1 US cents per kWh.In addition, the balancing volume increased by a negligible 0.7% year-on-year and amounted to 0.3 TWh, which represents 23% of the total supply.On June 12, 2026, an amendment was made to the grid rules, according to which: The transmission system operator is obliged to cancel the grid connection agreements for power plant projects that do not have a confirmation from the Ministry of Economy that they are at the stage of feasibility study or construction. Electrosystem will request this information from the Ministry by August 1. Project developers have the right to appeal the decision made by Electrosystem within 10 working days. Canceled projects will be refunded the paid grid connection fee. An agreement signed with the government on project development or a written confirmation from the Ministry has become mandatory for applications for connecting a new generation facility to the Energo-Pro and Telasi grids. This amendment aims to bring the power plant construction process into a single framework and release reserved capacities at grid connection points.

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The need for legislative amendments arose after the decision taken in December 2025 transferred the functions of the Personal Data Protection Service and the Anti-Corruption Bureau to the State Audit Office from March 2026.According to the rapporteur of the draft law, First Deputy Chairman of the Finance and Budget Committee, Irakli Kheladze, the main novelty is the subordination of the regulatory commissions - the Communications Commission and the State Commission for Electronic Communications, which were not subject to inspection until now - to the Audit Service. Their audit will be carried out on a similar principle to the National Bank, which means that the agency will only inspect administrative and capital expenditures and will not interfere in the substantive decisions of the regulators.Within the framework of the reform, auditors are also granted exceptional powers, which will allow them to request information related to state procurement directly from private individuals participating in tenders. In addition, in order to speed up operational work, the Audit Service will receive direct access to the electronic databases of other administrative bodies based on memoranda.At the same time, sanctions are being tightened, and the amount of the fine for failure to provide documentation or submitting false information to the agency is increasing from the current 1,000 GEL to 5,000 GEL. The draft law also specifies that financial compliance and efficiency audits include control of both ongoing and already implemented activities.From a structural point of view, the law adds a new position - the Secretary of Public Relations. He ensures coordination and communication with other agencies under the instructions of the Auditor General, although the addition of this position does not require additional financial expenses from the budget.

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The authors of the legislative initiative are members of parliament: Shota Berekashvili, Giorgi Barvenashvili, Tornike Berekashvili, Anton Obolashvili and Mariam Lashkhi.According to the amendments, a new category of licenses will be introduced in a systematic-electronic form for the international organization of slot machines and totalizator games. The introduction of this framework will encourage the legal entry of gambling operators registered in other countries into Georgia. However, according to the draft law, only foreign citizens and stateless persons will have the right to play on these platforms, while Georgian citizens will be automatically banned from accessing the aforementioned Internet websites.According to the initiators, the state offers a tax break to online casinos intended only for foreigners - they will be taxed at a lower 5% gross profit tax (GGR) rate, instead of the 20% that standard online casinos available to Georgian citizens are taxed at. The monthly 5% tax rate will be charged on the difference between the bets received and the winnings paid out.In addition, each type of international permit will be issued for a period of 5 years and its annual fee will be set at 100,000 GEL. Violation of permit conditions or the deadline for payment of fees will be subject to a fine of 20,000 GEL. The draft law also tightens restrictions on Internet domains: if under the current rules, a maximum of 2 websites could be operated with 1 permit, the new law reduces the limit to 1 website per permit, and a transitional period will apply to existing permits for the remaining period of their validity.The explanatory note to the draft law emphasizes that, on the one hand, the reform will ensure the protection of Georgian citizens from harmful influences, and on the other hand, it will promote the growth of foreign direct investment, the development of the service sector, the entry of highly qualified technological and marketing personnel into the country, and the accumulation of additional revenues in the state budget.

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The legislative amendments were authored and initiated by Members of Parliament Paata Kvizhinadze, Irakli Kheladze, Bezhan Tsakadze, Zurab Rurua, Giorgi Barvenashvili, and Levan Machavariani.Under the new regulations, a transitional period will begin in 2027, during which the tax authority will exclusively register cash registers that meet the new standard. Meanwhile, businesses will be allowed to use previously registered older cash registers and terminals without interruption until May 1, 2028.The law stipulates that a single operator, selected by the Government of Georgia, will handle both the supply and subsequent technical maintenance of the new equipment. The government will determine the service fees and specific payment procedures at a later stage.While the core components of these legislative changes have already taken effect, the mandatory requirements of the new system will be phased in incrementally through 2027 and 2028.Penalties are also being tightened under the new framework. Operating without a cash register or failing to use one during customer transactions will result in a 200 GEL fine for business entities.

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Speaking to journalists, the Prime Minister reviewed the current situation in the opposition and noted that the weakening of opposition parties and the destruction of political power will have a positive impact on the country’s democratic environment and political system.According to Kobakhidze, the disagreements between opposition entities exclude the possibility of gaining public support.The Head of Government emphasized that this trend and voter sentiment were clearly reflected in the 2020, 2021, 2024 and 2025 election cycles, where the opposition failed to achieve the desired results.The Prime Minister assessed the opposition spectrum as an anti-state group and a foreign agent, adding that their structural dismantling is a prerequisite for the country's long-term stability.

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The giant behind brands including Gillette and Pampers had continued to advertise with Imedi TV despite the company being flagged on the UK government sanctions list in February. An internal investigation carried out by John Brandon, a senior director and head of P&G’s European ethics and compliance office, led to the firm cancelling their business with the media company on Monday, City AM understands.A similar probe has been launched by Nestle, led by the company’s global head of legal Leanne Geale, City AM reported yesterday. Other global brands, including the commercial arm of the BBC, cut ties as soon as Imedi was listed as a sanctioned company by the Foreign Office.Procter & Gamble has faced criticism over its Russian operations since the start of the war in Ukraine. In February 2023 it was named as an “international sponsor of war” by Ukraine’s National Agency for Corruption Prevention despite scaling back its operations there, including discontinuing new capital investments and suspending its media, advertising, and promotional activity.The Georgian channel, founded in 2003 by tycoon Badri Patarkatsishvili, is listed on the official UK sanctions list and described as spreading “deliberately misleading information concerning Russia’s full-scale invasion of Ukraine.”Imedi TV “provides support for or promotes a policy or action which destabilises Ukraine or undermines or threatens the territorial integrity, sovereignty or independence of Ukraine,” the Foreign, Commonwealth and Development Office (FCDO) said.

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For this purpose, in 2025, a special structure was created in the government administration - the Department of Government Efficiency. The main task of this department is to assess the effectiveness of state programs, large infrastructure projects and procurements, as well as monitor their implementation. The Prime Minister emphasized that each public resource should bring maximum benefit to citizens, which is why special attention is paid to the further development of the state procurement system.The largest indicators in the direction of optimizing governance and administrative costs were recorded in the Ministry of Economy and Sustainable Development.According to Kobakhidze, as a result of the reforms implemented since 2025, the total savings achieved in the agency reached GEL 845 million. Of this amount, GEL 60 million are annual savings obtained directly from the reduction of 2,422 staff units, while the remaining GEL 785 million were saved by the ministry through the review and improvement of ongoing projects, state procurements, and existing contractual terms."In parallel with practical reforms, the government has also implemented significant legislative changes, which have increased the transparency and competitiveness of the public procurement system," Kobakhidze said.New legal mechanisms, on the one hand, facilitate more active involvement of small and medium-sized businesses (SMEs) in public tenders, and on the other hand, ensure more responsible and result-oriented management of budget funds. The Prime Minister also noted that the institutional modernization of the civil service is underway, where about 45,000 people are currently employed. To ensure the openness of personnel policy, about 3,500 vacancies were published on the unified electronic employment platform last year alone, and more than 1,400 young people gained their first professional experience through the paid internship program.In his speech, Irakli Kobakhidze focused on the close connection between institutional reforms and macroeconomic dynamics. According to him, in 2021-2025, Georgia's average annual economic growth rate amounted to a high mark of 9.3%, and according to preliminary data for the first four months of 2026, real GDP growth is within 8.3%.In addition, the Head of Government noted that according to the forecasts of the International Monetary Fund (IMF), Georgia will remain one of the fastest growing economies in Europe and the region in the medium term, the foundation of which is created precisely by effective state institutions and consistent economic policies.

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Lion Finance Group (BGEO LN) shares closed at GBP 114.40/share (+3.53% w/w and +5.44% m/m). More than 331k shares traded in the range of GBP 110.50 - 115.90/share. Average daily traded volume was 55k in the last 4 weeks. The volume of BGEO shares traded was at 0.77% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 45.30/share (-0.04% w/w and +1.34% m/m). More than 418k shares changed hands in the range of GBP 44.50 - 46.80/share. Average daily traded volume was 68k in the last 4 weeks. The volume of TBCG shares traded was at 0.75% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 41.70/share (-1.53% w/w and +2.96% m/m). More than 285k shares traded in the range of GBP 40.10 - 43.20/share. Average daily traded volume was 53k in the last 4 weeks. The volume of CGEO shares traded was at 0.83% of its capitalization.

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