The FINANCIAL — “Georgian Water and Power is to provide individual metering of water consumption.
This will have a positive effect on the budget of each household,” Joerg Matthies, CEO of GWP, Georgian Water and Power told The FINANCIAL. He says that households’ annual savings could each make up to 100 GEL.
“Unfortunately some people do not use water efficiently and just let it run down the drain for no good reason. However drinking water is a product, like bread, sugar and so forth. What’s more, drinking water is a vitally important product and resource. In addition there are large water losses in the population networks, which are due to the damaged sanitary equipment of customers. This causes significant problems in the functioning of water supply systems and uninterrupted water supply of the capital city. We believe that the individual metering of water consumption will help us to resolve these problems,” said Joerg Matthies, CEO of GWP.
Georgian Water and Power Company provides water supply and wastewater disposal services to the residents of Tbilisi. That means that the company is creating a product for the population – drinking water, which is derived as a result of the multiple processing and filtration of raw water. In addition the company ensures the transportation and delivery of drinking water to customers by central and street networks. The company invests labour and expense in this activity.
Q. What is the experience of other countries (could you cite examples?) – how efficient is this policy and will it be negatively reflected in the budgets of individual households?
A. The culture of efficient water consumption is based in all countries on the system of metering. It is a time-tested method in many countries and is primarily aimed at the forming of a habit of efficient consumption of water. The principle of metering is simple and fair. A customer who has installed a meter normally saves money for the household budget in regards to drinking water and respectively pays the exact cost of consumption.
We can say for sure that individual metering will have a positive effect on the budget of each household in Tbilisi. The tariff of water supply and wastewater disposal for metered residents of Tbilisi makes up 26.6 tetri per 1 cubic meter.
If a family consisting of 4 members pays 12.6 GEL on a monthly basis by fixed tariff (3.15 GEL per head), after meter installation and subject to rational use of water, let’s say 150 litres per head in 24 hours, like is the case in many of the countries of Europe, such a family will have to pay 4.80 GEL per month instead of 12.6 GEL. That means that the household is saving 8 GEL a month which is no small amount. The annual savings of the household in this respect could make up to 100 GEL. Just imagine how much more the savings of a family consisting of 6 or more members would be! Furthermore in some instances, when a family leaves town for instance, they will not be billed for water consumption at all.
Q. What will be the benefit for the company, on the other hand, from taking such steps?
A. The benefit for the company from individual meters’ installation will be the change of consumption habits of the population for the efficient use of drinking water. They will use it properly, repair, as necessary, damaged sanitary equipment at their dwelling houses or flats, and decrease water losses by that. In parallel with rehabilitation of the water supply networks and facilities the company will be able to ensure the resolution of the problem of uninterrupted water supply. Installation of water consumption meters for the population will contribute to a large extent to the resolution of this problem as well.
Q. When did GWP start the individual instalment of water meters? Which category of Tbilisi citizens have participated in it to begin with?
A. Georgian Water and Power Company started the installation of individual water meters in June of the current year, carrying it out at private houses located in different districts of Tbilisi.
Q. How many meters have been installed already and how many more will be done by the end of the year?
A. The company will install meters for 50,000 customers living in private houses by the end of the year 2011. At the moment 10,000 meters have already been installed in different districts of Tbilisi.
Q. According to which normative act has the instalment of water meters been started? Does the contract which you formed during privatization envisage such an action’s steps?
A. It is clear that the metering process is regulated by the corresponding normative document. According to #18 Resolution of GNERC (Georgian National Energy and Water Supply Regulatory Commission) dated 2010 the water distribution companies operating in Georgia have a right to install individual meters for customers living in private houses and provide them with uninterrupted water supply by 1 January, 2015. Installation of meters for the population is envisaged by the privatization agreement as well, however the details are set forth in the regulatory document.
Q. Will the tariff be affected (increased) after installation of the meters? When will Tbilisi citizens experience an increased tariff and how much will it be increased by?
A. Installation of individual meters for the population of Tbilisi will not definitely cause an increase of the tariff. The present tariff makes up 26.6 tetri per 1 cubic meter i.e. 1 ton of water. The same tariff will be retained for the population of Tbilisi after the meters’ installation.
Q. Do customers have to pay the price of the meter itself? And how much will it cost?
A. According to #18 Resolution of GNERC dated 2010, cost of the installation of each individual meter was defined at 100 GEL. This sum shall be covered by the customer, because the metering expenses are not reflected in the water supply tariff. In reality it costs GWP far more than 100 GEL to install individual meters for all customers, however the company expenses will not be reflected in the tariff either.
Q. Will Tbilisi citizens be expected to pay the amount of the water meter price on instalment?
A. The amount necessary for the installation of meters for the customers will be paid by the company, while the customers start paying part of this amount i.e. 100 GEL six months after the meter’s installation, and payment of this amount will be distributed over 24 months. So the customer will be paying 4.17 GEL per month along with their current bill.
Q. What are you awaiting as a result of this policy? Will Tbilisi have an uninterrupted water supply as a result of this policy?
A. Definitely, the company has certain expectations directly linked with the project of individual metering of the population. For us it is important that as a result of the metering, water supply will be significantly improved and become reliable in Tbilisi. The installation of meters will contribute to the resolution of the problem of uninterrupted water supply in Tbilisi because each customer will use drinking water in an efficient way and not randomly waste it. In addition the meter installation project will allow the company to employ new personnel.
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