Investor Presentaiton
Regulatory environment
Water tariff setting methodology fully aligned with EU best practice
Water utility business is regulated by an independent regulatory body - GNERC (Georgian National Energy and Water Supply
Regulatory Commission)
Main goals of the regulator include:
■Increase of transparency and trust among regulated companies and customers
Harmonization of laws and regulations with EU legislation
Enforcing fair KPI's to measure service quality
Transparent price setting methodology, enabling the company to efficiently plan its capital investments
Existing assets
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Net book value
WACC
Return on assets
New CAPEX
■Georgia took an important step towards EU integration by signing the Association Agreement in
June 2014
■ One of the major reforms was the introduction of a new model for setting prices for regulated
utilities for three year regulatory period
Regulatory WACC for the current 3-year regulatory period of 2018-2020 is set at 15.99%, up
from the previous 13.5%
■ Water tariff to be reset from 1st January 2021 for 3-year regulatory period
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Depreciation
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Total operating expenses
Allowed revenueView entire presentation