Georgia Capital PLC New tariffs are set for the water utility business (3780K)

TIDMCGEO

RNS Number : 3780K

Georgia Capital PLC

04 January 2021

London, 4 January 2021

Regulator sets new tariffs for the water utility business

Georgia Capital PLC (the "Group" or "Georgia Capital"), announces that Georgian National Energy and Water Supply Regulatory Commission ("GNERC"), the independent body that regulates the Group's water utility business, has approved new tariffs for water supply and sanitation ("WSS") services:

The WSS tariffs (1) in Tbilisi have increased compared to the previous regulatory period of 2018-2020:

o from GEL 0.3 to GEL 0.5 for residential customers; and

o from GEL 4.4 to GEL 6.5 for legal entities.

The tariff increase translates into a 38% growth in allowed water revenues in the upcoming three year regulatory period, effective from 1 January 2021.

The return on investment (WACC) is set at 14.98% (15.99% in the previous regulatory period).

The tariffs have been updated according to the methodology adopted by GNERC in August 2017, which is based on international best practice and represents a hybrid method of "cost plus" and "incentive based" methodologies, where revenue is determined based on a company's Regulatory Asset Base (RAB). The new tariffs reflect extensive capital expenditures made during the previous regulatory period combined with increased scale of operations.

Irakli Gilauri, Georgia Capital Chairman and CEO commented: "I am pleased to see that GNERC continues to support the water utility business's capital investment plans and has increased WSS tariffs. The tariff revision contributes to the healthy growth of water supply revenues as well as demonstrates the transparency of Georgian regulatory framework and its alignment with EU principles."

1.Tariffs are set per m(3) of WSS services supplied.

Name of authorised official of issuer responsible for making notification: Nino Rekhviashvili, Head of Investor Relations and Funding

About Georgia Capital PLC

Georgia Capital is a platform for buying, building and developing businesses in Georgia with holdings in sectors that are expected to benefit from the continued growth and further diversification of the Georgian economy. The Group seeks to capture growth in the sectors in which it currently operates and drive the development of new high-growth businesses in Georgia, which it intends to add either by acquiring businesses in their early development stage or by establishing greenfield businesses, often consolidating fragmented or underdeveloped markets. Georgia Capital currently has the following portfolio businesses: (i) a healthcare services business; (ii) a water utility business; (iii) a retail (pharmacy) business, (iv) an insurance business (P&C and medical insurance); (v) a renewable energy business (hydro and wind assets) and (vi) an education business; We also hold other small private businesses across different industries in Georgia and a 19.9% equity stake in LSE premium-listed Bank of Georgia Group PLC ("BoG"), a leading universal bank in Georgia.

 
 JSC Georgia Capital has, as of 
  the date hereof, the following 
  credit ratings: 
 
      S&P Global   'B'/FC & 'B'/LC 
      Moody's      B2/CFR & B2/PDR 
 

For further information, please visit www.georgiacapital.ge or contact:

 
      Irakli Gilauri                  Giorgi Alpaidze          Nino Rekhviashvili 
      Chairman and Chief Executive    Chief Financial Officer  Head of Investor Relations 
      [e-mail]                      [phone]         + 995 322 005 045 
                                      [e-mail]               [e-mail] 
 

This news report is presented for general informational purposes only and should not be construed as an offer to sell or the solicitation of an offer to buy any securities

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCEAEFDESEFEFA

(END) Dow Jones Newswires

January 04, 2021 02:00 ET (07:00 GMT)