GNERC, known in Georgian as სემეკი (Semeki), is Georgia's independent regulator for electricity, natural gas and water supply. It sets consumer tariffs, issues licences, approves the electricity market rules and settles disputes between utilities and their customers. This guide explains what GNERC does, today's electricity tariffs, how to complain, and what the regulator means for anyone investing in Georgian energy. Figures are as of October 2026.
GNERC at a glance
| Item | Detail |
|---|---|
| Full name | Georgian National Energy and Water Supply Regulatory Commission |
| Established | 1997, under the Law on Electricity (source) |
| Sectors regulated | Electricity, natural gas, water supply and, since 2019, amelioration (irrigation) |
| Members | 5 commissioners elected by Parliament for 6 years; the chair is elected from among them for 3 years (source) |
| Legal basis | Law of Georgia on Energy and Water Supply (2019), aligned with the EU Third Energy Package (source) |
| Independence and funding | Not subordinate to any state body; funded by regulation fees paid by regulated companies (source) |
| Licensees | 29 in electricity, 16 in natural gas, 8 in water supply (source) |
| Address | 19 Mitskevichi Street, Tbilisi |
Commission decisions are taken by majority vote, and its sessions are open to the public.
What does GNERC do?
- Sets tariffs. GNERC approves the retail tariffs that households and businesses pay for electricity, gas and water, and the tariffs for transmission, distribution and other regulated services. Since 2014 it has set cost-reflective tariffs for multi-year regulatory periods (source).
- Issues licences. Electricity generation (with exemptions for small plants), transmission, distribution and market operation all need a GNERC licence, as do gas transmission, distribution, storage and water supply (source).
- Writes the market rules. It approved the Electricity Market Rules (day-ahead, intraday, balancing and ancillary services markets) and the Retail Market Rules that underpin the market reform.
- Protects consumers and resolves disputes. It reviews complaints against utilities and decides disputes within two months of receiving a complete application (source). Its Service Quality Rules set guaranteed standards and the compensation consumers receive when they are breached.
- Regulates microgeneration. It introduced net metering in 2016 and sets the terms on which small rooftop and commercial plants sell surplus power to the grid.
Electricity tariffs in Georgia (July 2026 – January 2027)
Household tariffs rise with monthly consumption. These are GNERC's universal service tariffs, including VAT, valid from 1 July 2026 to 1 January 2027 (source):
| Monthly consumption | Tbilisi (Tbilisi Electricity Supply Company) | Regions (EP Georgia Supply) |
|---|---|---|
| Up to 101 kWh | 20.041 tetri/kWh | 19.731 tetri/kWh |
| 101–301 kWh | 24.053 tetri/kWh | 23.707 tetri/kWh |
| Over 301 kWh | 28.537 tetri/kWh | 28.227 tetri/kWh |
| Small businesses (220/380 V) | 35.261 tetri/kWh | 35.713 tetri/kWh |
A household using 250 kWh a month in Tbilisi therefore pays about 24 tetri per kWh, while a small business pays about 35 tetri. That gap is one reason rooftop solar is attractive for businesses; see our guide to solar energy in Georgia. For all household, business and high-voltage rates, see our electricity tariffs guide.
Who does what in Georgia's power sector
GNERC regulates, but it is not the only institution investors deal with:
| Institution | Role |
|---|---|
| GNERC (სემეკი) | Independent regulator: tariffs, licences, market rules, disputes |
| Ministry of Economy and Sustainable Development | Energy policy and the renewable energy support auctions |
| GSE (Georgian State Electrosystem) | Transmission system operator and dispatcher |
| ESCO | Electricity market operator; buys power under PPAs and CfDs (source) |
| GENEX (Georgian Energy Exchange) | Runs the day-ahead and intraday markets |
| Universal service suppliers | Sell electricity to households and small businesses at GNERC tariffs |
GNERC and the new electricity market
The 2019 law moved Georgia towards a competitive market in which consumers can choose their supplier. A transitional market model launched on 1 July 2024, with hourly products traded on GENEX's day-ahead and intraday markets (source). The transition is still under way: intraday trading is suspended from 1 October 2026 until 1 July 2027 (source).
Georgia joined the Energy Community in 2017, which commits it to align its energy law with EU rules (source). For the investor view of this reform, see our analysis of electricity market liberalisation and CfD auctions.
Does your power plant need a GNERC licence?
| Plant | GNERC generation licence? |
|---|---|
| Microgeneration plant up to 100 kW in the law; GNERC has raised the limit to 500 kW | No; net metering or net billing rules apply |
| Small power plant up to 15 MW | No, but the plant must notify the regulator |
| Power plant above 15 MW | Yes |
| Off-grid plant for the owner's own use | No |
Source: Law on Energy and Water Supply, Article 11 and definitions (source). A licence is only one step: most projects also need an environmental decision, a construction permit and a grid connection agreement. See our guide to power plant permits in Georgia.
How to complain about your electricity, gas or water supplier
- Contact the company first. Most billing, metering and connection problems are solved at this stage.
- Apply to GNERC. If the problem is not solved, file a complaint with the Commission, online or at its Tbilisi office. GNERC must decide within two months of receiving the full documents.
- Ask the Public Defender of Consumer Interests. This energy ombudsman service works under GNERC but independently of its administration, with regional offices in Batumi, Kutaisi and Telavi (source).
What GNERC means for investors
- Licensing threshold. Plants up to 15 MW avoid generation licensing, which keeps small hydro, solar and wind projects light on regulation.
- Regulated returns. Grid and distribution assets earn returns set by GNERC's multi-year tariff methodologies, so tariff reviews drive their value.
- A market still in transition. Day-ahead prices now exist, but rules keep changing; long-term revenue models should test both regulated and market scenarios.
- EU alignment. Energy Community membership gives a clear direction of travel for market design and unbundling.
Our regulatory advisory team helps investors with licensing, tariff questions and market rules. See also our energy asset due diligence checklist.
Need a view on a regulatory question in Georgia? Contact us.
