Connecting Cities with Macro-economic Concerns: Lessons from Georgia (Bilingual edition)

By Mila Freire, Mario Polèse and Pamela Echeverria

One of the harsher realities of independence for the former Soviet republics has been the loss of subsidized transfers from the center for fuel and utilities. In the years since independence, Georgians, with other “energy poor” republics, have been subject to higher costs and declining service levels for household utilities – particularly energy. The combination of low household incomes, high international prices for fuel, the need for utilities to rely on internally generated funds for capital investment, low household incomes, and the political ramifications of removing subsidies at a time of general economic decline have led to a “worst of all worlds” situation. Revisiting Reforms reviews the changes in the supply of electricity and gas in Georgia from the perspective of households, utility operators, and the government. It highlights lessons from the reforms implemented and applies them to the future reform program planned for the rest of the energy sector. The title concludes that improved service quality and the increased supply of clean and subsidized natural gas have offset the potentially negative impact of higher electricity prices.

• Language: English
• Publisher: World Bank Publications
• Release date: Nov 17, 2003
• ISBN: 9780821356739