Investor Presentaiton
Coverage by population
Georgian utility market overview
Largely privatized utility sector with high barriers to entry
■ Utilities sector represents ~3% of total economic output in Georgia and is constantly
growing at a sustainable rate (CAGR 8.3% in 2006 - 2016)
Bulk of sector players are natural monopolies and the barriers to entry are high
Large part of the industry is privatized, except for the fraction of WSS utilities and
irrigation
Reforms are in progress in utilities sector to approximate the sector with EU energy
regulations in accordance to Georgia's undertaking under the Association Agreement
with the EU
■ Georgian National Energy and Water Supply Regulatory Commission (GNERC) is an
independent body that regulates the utilities market
■
GNERC is independent from the Government of Georgia and has no direct supervision
from any state authorities and its independence is guaranteed by a legally mandated,
self-sufficient revenue stream from the regulation fees paid by utility market participants
(0.3% of the utility revenues)
The sector is regulated by the set of laws, by-laws and government decrees on tariff
setting, utilities (water, electricity, natural gas) market rules, grid / network codes,
legislation on licensing, resource extraction and environmental accountability
GGU - only profitable player on Georgia's WSS market
63.4%
70.1%
■
36.6%
Water
■GGU
- State
Electricity
(privatized)
GEORGIA
CAPITAL
29.9%
■ Telasi (Tbilisi)
■ Energo-Pro (regions)
7.0%
29.9%
Natural Gas
(privatized)
KazTransGas (Tbilisi)
■ Socar Group
■ Other
Largely depreciated water and sanitation infrastructure with average water losses at c. 70%
(4-5 times higher than in western Europe)
Average collection rates from households in Georgia - c. 50%
GGU's average collection rates - around 96%
Water utilities other than GGU heavily subsidized by state
63.1%
c. 47% of the population serviced on the municipal level with bad service quality, frequent
interruptions and poor coverage
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