Water metering - a trick or a relief?
02 December, 2010
Water metering - a trick or a relief?

Installment of water meters has always been advocated as a panacea for solving the problem of water bill payment for good and all. On the other hand, metering is supposed to make water consumption reasonable and cut down water bills four fold. However the recent tariff hike on water put big question marks over both expectations. Unpaid water bills have been a headache of Georgian government for years.

Tbilisi City Hall, the previous owner of Tbilisi Water Ltd, Tbilisi water distribution

network, was permanently complaining that Tbilisi population is unreasonably wasting water, consuming 800 a liters per capita daily while an average water consumption in Europe amounts to 150-200 liters per capita, and that the municipality is at a loss due to unpaid bills and has to subsidize the water distribution company regularly. 
Government attempted to sell the burdensome assets for several times but without success. Rose Revolution government promised never to divest Tbilisi Water for its social importance. Their understanding was that it could be profitable if individual meters would be installed. That could make consumers to be thriftier [bring down water consumption to the European level] and solve bill payment problem. And under the pretext of commencement the metering process, the government doubled fixed individual tariff from GEL 1.2 per capita to GEL 2.40 in January of 2007. The state budget-based organizations and commercial sector was metered and charged by GEL 4.4 per cubic meter (pcm) that equals 1000 liters. And as a metering program of household had also been launched and scheduled to be through in three years, the household metering tariff was defined as 10 tetri per cubic meter. There were expectations that after metering, water consumption could be cut down from 800 liters per capita to 150-200 liters and households were supposed to cut down water bills four-fold likewise.
However, Tbilisi Water was sold shortly after tariff-hike in 2007. Georgian Water & Power Co., the new owner of Tbilisi water, planned to increase tariff for household to GEL 2.95 from 2010 and maintain it until 2014. However, it did not use this right until recently.
According to Joerg Matthies, Director General of GWP, now company implements serious investments in rehabilitation-modernization of the sewerage system and water supply; also they launch a big project aimed to keep Mtkvari River pure of fecal masses. Moreover, they have an obligation to ensure uninterrupted water supply to entire Tbilisi population in both old and new administrative borders of Tbilisi till 2012 and 2015 respectively. All these require huge investments and GWP asked Georgian National Energy and Water Regulatory Commission (GNERC) to increase tariffs for households.
“All reasonable economic outlays must be reflected in tariffs, otherwise Company will be deprived of a development chance and fail to meet demands of the city and population alike,” Matthies told Georgian Journal. He did not disclose the required investment figure that is already foreseen in the new tariffs.
GNERC found GWP request reasonable and increased both the fixed and meter tariffs for household to GEL 3.15 and 26.6 tetri per cubic meter respectively. New tariffs cannot be changed till 2015 when GWP plans to complete individual metering of households. The further increase is not ruled out after 2015.  Accordingly,  expectations that households can cut down water bills four-fold after the metering vanishes in the air;  GWP seems to be the one who can profit from tariff hike and metering alike, Davit Ebralidze, former energy ombudsman and tariff expert told GJ. 
The trick is that thanks to the increase of metering tariff from 10 to 26.6 tetri, the fixed tariff and metering tariff-related expenses actually equalize if a household really consumes the targeted 150 liter per capita, but meter-related expenses increase if the consumption exceeds this benchmark.
On the other hand, the myth that daily water consumption of Tbilisi makes up 800 liters per capita [24 thousand liter per month] is ruined. Calculation of water tariffs was based on this presumption for more than 10 years. However, GNERC found out [after GWP submitted a tariff-increase request] that daily water consumption makes 400 liters per capita [or 12 thousand liters per month] in fact , Valeri Pkhakadze, Energy Ombudsman of GNERC told GJ.
And since Tbilisi population increased rather than decreased, simple calculation makes clear that GWP [instead of the much trumpeted loss] has been enjoying double profit out of fixed tariffs. The point is that, according to Ebralidze, fixed tariffs based on 800-liter consumption equaled GEL 2.4 [the tariff calculation method multiplies daily consumption on 30 days and calculates the price of monthly consumption based on meter tariffs: 10 tetri per cubic meter in the old case], while real water consumption was 400 liters [may be less actually] and the fixed tariff had to stand at GEL 1.2.
If the metering tariff were not increased, households might really have a relief of the upcoming metering and pay GEL 1.2 approximately per capita monthly instead of the newly fixed GEL 3.15. Now thanks to new tariffs based on 400-liter consumption calculation, households will have to pay GEL 3.15 per capita monthly before metering and at least GEL 3.19 after the metering. Actually expenses will increase for households by approximately 4 tetri after metering will be through.

 

 

 

Print
Other Stories
The most wanted fruits from Georgia
The fruit exportation has decreased in Georgia. According to Geostat (National Statistics Office of Georgia), this year, up until May Georgia exported 25 939 300 USD worth of fruit – 6 771 300 USD less than in 2018.
Investment Plan for Europe – Additional EUR 800 million for SMEs as EIF and ProCredit double support for innovative companies
The European Investment Fund (EIF) and ProCredit Group are providing an additional EUR 800 million to innovative small and medium-sized companies (SMEs),
Everything of comfortable life in one space – Second part of construction of one of the largest apartment complexes finished in Tbilisi
Apartment in ecologically clean environment, thousands of square meters of green yard, swimming pools, places for various sports activities, treks for walking and running, commercial spaces – all these available in one space is not a fantasy.
Batumi awarded Europe's Leading Emerging Tourism Destination 2019
World Travel Awards Europe Gala Ceremony 2019 took place on the 8th of June in Madeira, Portugal.
Coca Cola to open new factory in Georgia, will hire female drivers
Coca Cola is opening new factory in Georgia in December.
World's best party supply company now on the Georgian market
The largest party supply store in Georgia - MyDay is launching as the official distributor of AMSCAN from 2019.
Live as a marketing tool and an unprecedented live stream launched by Livetag
Sharing information has become smoother and more versatile in today’s technological world. Recently, live streaming, an online streaming media has become especially popular.
Theme and program of Caspian Energy Forum Tbilisi – 2019 changed
“The 8th International Caspian Energy Forum Tbilisi – 2019, scheduled for June 21, will focus on the development of the Azerbaijan-Georgia relations in the field of economy and energy”,
Misunderstanding over Poti deep sea ports
There was misunderstanding around deep sea ports in Georgia – in Poti.
High demand for dollars or the investment decline – Why Georgian Lari depreciates
$1 equals GEL 2,7470 in the official rate set by the National Bank of Georgia (NBG).
PSP Group confirms negotiations regarding purchasing of GEO Hospitals
PSP Group confirms negotiations regarding purchasing of GEO Hospitals.
New life to be given to Dashbashi Canyon
Georgia’s Agency of Protected Areas is planning to give new life to Dashbashi Canyon in Tsalka (southeastern Georgia).
Who is constructing “Khadori 3” Hydropower Plant in Pankisi Gorge?
Clashes broke out in Pankisi Gorge, Georgia’s northeastern region between special forces and residents
Business Positive – Successful radio program from Radio Positive
Starting point of radio program Business Positive is to meet interesting people, communicate with them and deliver information that is interesting for the audience.
A factory of electric vehicles to be built in Kutaisi
Prime Minister Mamuka Bakhtadze stated that a factory of electric vehicles will be built in Kutaisi at the presentation of the Aigroup business group.
Qvevri-shaped hotel complex to be built in Telavi
A Qvevri-shaped hotel complex is scheduled to be built in the village of Shalauri in Telavi, Kakheti (east part of Georgia).
Georgian designers presented at Fashion World Tokyo 2019
The products of 11 Georgian designers are showcased at Fashion World Tokyo 2019,
Silknet raises $200 million in Eurobond issue
27 March 2019 - JSC Silknet (“Silknet”), one of Georgia’s leading telecommunications operators, has successfully priced a debut $200 million 5-year 11% senior unsecured bonds issue (the “Notes”).
Pistachio trees will be planted in Georgia
Dozens of hectares of Pistachio are planned to be planted in Georgia this year.
Toyota Safety Sense and Hybrid Technology
Toyota Caucasus, has presented two new models the 5th generation RAV4 and the 12th generation Corolla at Rustavi International Motorpark, several days ago.
Bidzina Ivanishvili “became number one oppressor of businesses in Georgia” - ICC Georgia chairman Fady Asly
Mr. Ivanishvili promised the business community to protect them from harassment and pressure, unfortunately his words died with the sunset of that day
The best brands of Belarus will be exhibited on a large-scale exposition in Tbilisi
"The Belarusians like to come to Georgia to relax near the sea in Batumi as well as to stay in sunny Kakhetia."
Don’t treat business like a hooker! - Georgian businessman Vasil Soprpmadze addresses politicians
Businessman Vasil Sopromadze, founder of the company "Fresco", addresses politicians
RAV4 No Compromise and Corolla Set to Impress – Two New Cars Presented by Toyota
Toyota Caucasus, the company constantly aspiring to greatness, has presented two new models the 5th generation RAV4 and the 12th generation Corolla.
Mamuka Khazaradze quits TBC bank, does not sell the TBC Bank share
I made a decision to leave TBC bank where I spent 27 years of my life
PHOTO OF THE DAY
GEL Exchange Rate
Convertor
18.07.2019
19.07.2019
USD
1
USD
2.8687
2.8714
EUR
1
EUR
3.2178
3.2191
GBP
1
GBP
3.5580
3.5832
RUB
100
RUB
4.5670
4.5608
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.8714
EUR
1
EUR
3.2191
GBP
1
GBP
3.5832
RUB
100
RUB
4.5608
July 2019
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31