Georgia writes off $370m in fines for 157 energy companies
Under a government decision, fines totalling about 1 billion lari ($370m) have been written off for 157 companies in Georgia’s energy sector.
Authorities say the move is part of a “conditional write-off” scheme. Companies fined for network failures, periodic power outages, budget arrears and unmet obligations will have their penalties cancelled, provided they comply with deadlines in the future. If they fail to do so, the fines will be reinstated.
The government says the measure will allow energy companies to restore their resources.
Prime Minister Irakli Kobakhidze said the decision had been taken several months ago and the process has now been completed. He added that some companies declined the offer, meaning projects with a capacity of 535 MW will be terminated, while projects totalling 1,500 MW will continue.
Context
On 30 March 2026, it was announced that electricity tariffs in Georgia would increase. Household consumers will see prices rise by 5 tetri (about $0.02), while the commercial sector will face an average increase of 4–6 tetri ($0.01–0.02). Overall, tariffs have risen by 33%.
The higher tariffs came into effect on 1 April.
According to Georgia’s National Energy and Water Supply Regulatory Commission (GNERC), the main reasons for the increase are the country’s reliance on electricity imports and higher purchase prices.
The commission also said that planned investments for the new tariff period are affecting prices. These investments are aimed at gradually upgrading the electricity distribution system and reducing the number of outages. Officials say this will improve the reliability of electricity supply and reduce the frequency of disruptions for consumers.
Fines written off for energy companies in Georgia
