WAREG’s Georgian Peer Review Project: Strengthening Water Sector Regulation

The WAREG Peer Review of the Georgian Tariff Methodology is a groundbreaking project that represents an important milestone for our organization. It showcases our commitment to knowledge sharing and collaboration among water regulators and demonstrates the value of our collective expertise.

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The WAREG Peer Review of the Georgian Tariff Methodology is a groundbreaking project that represents an important milestone for our organization. It showcases our commitment to knowledge sharing and collaboration among water regulators and demonstrates the value of our collective expertise.

Central to this project is our role in aiding the Georgian National Energy and Water Supply Regulatory Commission (GNERC) in implementing a significant tariff methodology reform. The reform addresses specific challenges in the Georgian water sector, including reducing cross-subsidization from non-domestic to domestic customers and increasing the percentage of metered domestic customers. As it stands, water utilities in Georgia are grappling with difficulties in covering Capital Expenditure (CAPEX) with their tariffs, which has led to high cross-subsidies and sustainability concerns.

This project is entirely managed by WAREG, and it stands out as the first project of its kind that we have undertaken. It highlights the strength and capabilities of our organization in mobilizing resources and bringing together regulatory know-how from our member countries.

The purpose of the Peer Review is to support the Georgian water regulator in drafting and reviewing their new tariff methodology. This critical task requires careful consideration and expertise to ensure the methodology is robust, transparent, and aligned with international best practices.

To accomplish this, WAREG has engaged top-tier experts from our member countries who possess extensive regulatory knowledge and experience. These experts are actively supporting the Georgian regulator on the ground, working closely with their counterparts to provide guidance, insights, and recommendations throughout the process.

More in detail the team of peer reviewers is composed by:

  • Andrea Guerrini, WAREG President and ARERA (Italy) Commissioner;
  • Joaquim Barreiros, ERSAR (Portugal) Commissioner;
  • Ndricim Shani, ERRU (Albania) Chairman.

By leveraging the collective expertise of our members, we aim to assist the Georgian regulator in developing a tariff methodology that promotes efficiency, fairness, and sustainability. The project entails comprehensive reviews, consultations, and discussions to address the specific challenges and needs of the Georgian water sector.

This initiative not only benefits the Georgian regulator but also contributes to the broader objectives of WAREG. It fosters knowledge exchange, capacity building, and regulatory excellence by bringing together regulators from different countries to collaborate and share best practices.

Through this project, we are harnessing the power of our network and leveraging the diverse expertise within WAREG to create positive and tangible impacts on the ground. It demonstrates our commitment to supporting regulatory development in countries beyond our immediate region and reflects the inclusive and collaborative nature of our organization.

The Georgian Peer Review project serves as a testament to the value and strength of WAREG as a platform for knowledge sharing, capacity building, and regulatory cooperation. We are proud to undertake this pioneering initiative and look forward to the positive outcomes it will generate for the Georgian water sector and beyond.