Interfax, Russia
Oct 18 2004

Georgia starts to import electricity from Armenia

Tbilisi. (Interfax) – AO United Distribution Company (UDC) of
Georgia, which is managed by the U.S. concern PA Consulting, has
started to import 60 megawatts of electricity from Georgia, Georgian
Energy Minister Nika Gilauri told Interfax.

The minister said that in the near future the Tbilisi energy
distribution company Telasi, which is managed by Unified Energy
System of Russia, also plans to start importing up to 100 megawatts
of electricity from Armenia.

“Thanks to electricity imports by the companies Telasi and UDC we
will be able to ensure the stability of the energy system and no
sabotage on power lines connecting eastern and western Georgia will
be able to create force majeur situations in the country’s energy
supplies,” Gilauri said.

He said that electricity would be supplied from Armenia through two
power lines.

UDC General Director Dean White told journalists that imports of
electricity from Armenia would be carried out throughout the
fall-winter season – until April 1, 2005.

The electricity is being supplied at $0.025 per kilowatt-hour.
According to the agreement with the Armenian side, this tariff will
not change until December 31, 2004, after which it may be reviewed.

White said that in the future UDC, like Telasi, plans to begin
imports from Russia also. However, for this it is necessary to
restore the Daryal power line connecting Georgia and Russia. UDC is
currently holding talks on this issue with the Russian side.

State-owned UDC was set up in 2002 by merging regional grid
companies. The company supplies electricity to almost 70% of the
country, in all regions except for Tbilisi, Ajaria and Kakhetia. PA
Consulting received management of UDC in May 2003 for a period of 18
months. UDC supplies electricity to about 660,000 consumers.