During the Electricity Market Reform, ESCO Finishes the Year 2019 with the Operational Profit
Zaza Dvalishvili, CEO of the Electricity Market Operator (ESCO), made a presentation at the meeting held at the Ministry of Economy and Sustainable Development.
The Electricity Market Operator (ESCO) completes the Year 2019 with the operational profit. According to the Director General of the company Zaza Dvalishvili, the fact that ESCO is making profit this year is one of the important prerequisites for the stability of the electricity market in the future. This statement was made by Zaza Dvalishvili during the consolidated presentation at the Ministry of Economy and Sustainable Development of Georgia, which was attended by the Minister Natia Turnava and other officials of the Ministry.
During the presentation he noted that the Year 2019 was an important milestone for the beginning of fundamental reforms in the electricity sector. According to the CEO of ESCO, a positive result is obvious: increased competition between the companies registered as direct consumers in the market.
As part of the reform, as of May 1, 2019, some large industrial customers will have the opportunity to purchase electricity at a market price. This direction of deregulatory reform is important for the companies registered as direct customers, to increase their own production and think about introducing new technologies. In 2019, as a result of the reform, 11 suppliers and 10 direct consumers were registered as wholesale traders in the electricity market.
According to Zaza Dvalishvili, the reform will continue in 2020: “A new structure has been created - the Georgian Energy Exchange. The reform should be implemented jointly with it, in line with the requirements of the new strategy, for the introduction of a trade scheme,” - stated the Director General of ESCO. He said that despite the challenges in the sector, the electricity market remains stable, which is very important for the country and the customers. The role of ESCO will be significant in the future, given the challenges of the reform period, and it will continue to work to ensure the financial stability of the sector.
Natia Turnava, Minister of Economy and Sustainable Development, in her concluding remarks, welcomed the fact that ESCO is ending its current operating year with a profit. "We have launched the most important reform of the electricity market, which should introduce modern western market principles of electricity. Thus, we have taken serious steps towards strengthening the energy independence of Georgia, increasing the energy efficiency and reviving Georgian industry. Energy reform is a good incentive for the companies interested in investing in Georgia's generation facilities. Therefore, it is very important that state energy companies were focused on financially sound and sustainable development during the reform process. Also, along with the attraction of new investments and the integration of renewable energy sources, ESCO's future work should place special emphasis on energy efficiency and environmental issues and their encouragement. “– stated the Minister of Economy and Sustainable Development.
