ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Dec
05

The Energy Tariffs Debate: Stoking the Fire

The possibility of lowering electricity and gas tariffs has become one of the top discussion topics across the country in the last few weeks. Little wonder of the interest in this topic at the time when gas and electricity bills reach their annual peak in account of the increased use of electricity and gas during the winter period. Having thought for some time about the feasibility of reducing electricity and gas tariffs in the near future, one comes across three questions that need to be addressed before jumping to hasty and potentially regrettable deci...
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Guest — Eric
Of the many great points in the blog, I chose this one to amplify: "Since they are paying in full, aren’t consumers entitled to a... Read More
Wednesday, 05 December 2012 10:10 PM
Guest — Inigo
Indeed Eric, customer service is the most obvious missing link. Let's look at the two issues you bring up.First, the point about t... Read More
Thursday, 06 December 2012 1:01 PM
Guest — Michael
I would be interested in learning what the reasons for the often low quality of the current are. Are these technical reasons? Econ... Read More
Thursday, 06 December 2012 9:09 PM
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Oct
19

Small Hydropower Plants: No Competition in a Competitive Marketplace

Economics suggests that competition in a market brings more welfare to a country. Anti-monopoly agencies exist to create policies that limit market dominance and achieve competition. There are, of course, cases when natural monopolies emerge (for example, railways – where no one would build a parallel line to an existing one) and the solution to prevent monopolies in such instances is to regulate the businesses or take them into state ownership. It is, however, difficult, but not impossible, to find an instance when a market is competitive, but where no ...
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Guest — Eric
I don't think this is about competition or lack thereof. The puzzle is that small HPPs are free to sell directly to customers, cut... Read More
Friday, 19 October 2012 6:06 PM
Guest — Irakli
That’s why only allowing trade (by law) is not enough. Even though they are allowed to trade and market is competitive we do not s... Read More
Friday, 19 October 2012 11:11 PM
Guest — Michael
Admittedly I don't know anything about electricity markets, but maybe what ESCO does is to pool the risk. For consumer the risk th... Read More
Friday, 19 October 2012 8:08 PM
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Oct
17

Georgia – Net Electricity Importer Again?

Several years ago the (now former) Georgian government started successful reforms in the electricity sector and was eagerly looking forward to future projects. The improvements made were evident. The rehabilitation of hydroelectric power plants (HPPs) and other structural reforms led to a gradual increase of hydro power generation and to the decrease of electricity imports and thermo power generation. From 2006 this helped Georgia to become a net exporter. By 2010 Georgia exported almost seven times more electricity (1524.3 GWh) than it imported (222.1 G...
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Guest — Rati
I've undergone a starting phase of depression until I reached paragraph 4. thanks for good post and expecially for its end.
Wednesday, 17 October 2012 3:03 PM
Guest — Michael
Maybe extensive construction had a (negative) impact on power generation. I suppose there are HPPs that have been rehabilitated, t... Read More
Wednesday, 17 October 2012 4:04 PM
Guest — Giorgi
Michael, there was not any announcement about such large rehabilitation in last couple years that could cause this. In the contra... Read More
Friday, 19 October 2012 2:02 PM
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Oct
05

Competition in the Georgian Retail Gasoline Market

No, nothing about the election here. Instead something about the Georgian retail gasoline market, which according to some is not so competitive. Case in point is this article on an opposition (soon government) leaning news outlet that alleges price fixing in the Georgian retail gasoline market. The article is based on a recent study by Transparency Georgia. A study with some interesting data, but apparently it was all too much for a clueless (or partisan) journalist. But let’s discuss the study itself. Transparency Georgia finds that: The reta...
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Guest — Eric
Leaving the poor "journalist" alone, I had a very similar impression of a previously published Transparency International report o... Read More
Saturday, 06 October 2012 10:10 AM
Guest — Matsatso
In favor of TI survey,I agree with the fact that "price transmission mechanism" seems to be really asymmetric in Georgia. View is ... Read More
Saturday, 06 October 2012 12:12 PM
Guest — Hans Gutbrod
Looking forward to TI's response! Have you asked them? Otherwise agree with your point that you need specialization for think tank... Read More
Sunday, 07 October 2012 12:12 AM
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Jul
04

Everything You Wanted to Know About Your Electricity Bill

In the last week's Khachapuri Index column in The Financial we took a break from agriculture and focused instead on the energy sector of Georgia. While the bulk of khachapuri cost is related to home grown agricultural products, to actually cook khachapuri one has to use energy. And though the share of energy in the total cost is very low, less than 6% (15 tetri, if using gas; 16 – if using electrical oven), it does not make the sector any less interesting to discuss. Let us begin by stating the obvious: ever since we started our Khachapuri Index survey i...
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Guest — Michael
Is there any data on the absolute cost of Transmission & Distribution, and Generation & Supply, compared to other countries? How d... Read More
Wednesday, 04 July 2012 6:06 PM
Guest — Irakli
Yes, the data on absolute costs is available for some countries (Mainly for EU countries from Eurostat) and in vast majority of co... Read More
Wednesday, 04 July 2012 8:08 PM
Guest — Vano
Nice post! Describes in an easy ways the long way of electrons coming to our houses. Looking to the chart, one question comes to ... Read More
Thursday, 05 July 2012 11:11 PM
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Feb
10

The World's Tallest Skyscraper

From Eurasianet: The Azerbaijani developer Avesta plans to stick the 1,110-meter-high (about 3,642- feet-high) building on a chain of artificial islands off Azerbaijan's Caspian Sea shore. Completion date: by 2019. The tower -- named, not surprisingly, "Tower of Azerbaijan" -- is expected to house hotels and business centers. While it is unclear whether this project will ever be realized, it certainly shows that Azerbaijan has huge ambitions. Comparisons to Dubai come to mind, as a city with attention-grabbing architectural projects. More importantly, Du...
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Guest — Eric
Azerbaijan's production of carbon fuels is very close to reaching its peak (if it hasn't already reached the peak). The recent dis... Read More
Saturday, 11 February 2012 12:12 PM
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