Revisiting Reform in the Energy Sector : Lessons from Georgia

Revisiting Reform in the Energy Sector: Lessons from Georgia is part of the World Bank Working Paper series.

These papers are published to communicate the results of the Bank's ongoing research and to stimulate public discussion.

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 Reform in the Energy Sector reviews the changes in the supply of electricity and gas in Georgia from the perspective of households, utility operators, and the government.