Utility Costs in Georgia: Parallels with the Global Market

The issue of utility costs in Georgia is particularly important as it reflects the economic conditions of the population and the standard of living. According to data from Numbeo, Georgia ranks 65th out of 96 countries in terms of utility costs, indicating that the country is at an average level globally. In Georgia, monthly utility costs average $68.82, which is relatively low compared to European and American countries but higher than in some neighboring countries in the region.

Among Georgia’s neighboring countries, the lowest utility costs are found in Turkey and Azerbaijan. In Turkey, monthly utility costs average $61.18, which is 10% lower than in Georgia. In Azerbaijan, the figure is $57.40, which is even cheaper. According to Numbeo, the lower costs in these countries can be attributed to relatively low energy prices and state subsidies, which make utilities more affordable for the population.

In Armenia and Russia, utility costs are relatively higher. In Armenia, monthly utility costs average $120.24, which is almost twice the level in Georgia. In Russia, the figure is $99.43, which also exceeds the average in Georgia. This difference is influenced by energy price regulation, infrastructure quality, and government policies affecting the energy sector and utility costs.

According to Numbeo’s ranking, utility costs are highest in Austria, Germany, and the United Kingdom. In Austria, monthly utility costs average $372.26, which is almost six times higher than in Georgia. In Germany, the figure is $322.22, and in the United Kingdom, it is $319.10. These numbers indicate that utility costs are significantly higher in developed countries, which can be explained not only by high energy prices but also by high infrastructure standards and better quality of service.

Utility costs are also relatively high in Latvia, the Czech Republic, and Estonia, where monthly costs range from $285 to $315. These countries are members of the European Union, where there are high demands and regulations on the energy sector, leading to an increase in service quality and, consequently, utility costs. Eurozone countries also place significant emphasis on energy efficiency and environmental standards, which further increases the cost of utilities.

Utility costs are quite low in Iran, Egypt, and Venezuela. In Iran, monthly utility costs average $15.57, which is among the lowest globally. Similarly, in Egypt, the figure is $15.66, and in Venezuela, it is $19.03. The low costs in these countries are primarily due to government subsidies that artificially lower energy prices.

The average utility cost in Georgia, which is $68.82 per month, represents an average level in the global ranking. Countries like Turkey and Azerbaijan have lower utility costs than Georgia, indicating strong state support for the energy sector and relatively low pricing policies in these countries.

The significantly higher utility costs in developed countries compared to Georgia suggest that energy efficiency, high-quality infrastructure, and environmental standards significantly increase expenses. For example, high utility costs in Austria and Germany are associated with strict adherence to environmental standards and energy conservation policies. Moreover, a high standard of living and income level allows the populations of these countries to afford higher utility bills, ensuring high-quality energy and utility services.

Utility costs in Georgia are at an average level compared to the global scale. In relation to neighboring countries, Georgia’s situation is moderate – utility costs are lower in Turkey and Azerbaijan, while they are higher in Armenia and Russia. This is influenced by subsidy policies in the energy sector, the state of infrastructure, and the availability of energy resources. In developed countries, such as Austria, Germany, and the United Kingdom, higher utility costs are linked to compliance with high standards and regulations that ensure high-quality service and energy efficiency.

For Georgia, it is important to focus more on improving energy efficiency and developing utility infrastructure. Additionally, it is crucial to use state subsidies effectively to ensure that low- and middle-income households have access to utility services. In the future, through infrastructure improvements and the development of energy policies, Georgia can achieve a stable level of utility costs that ensures both energy efficiency and social equity. This will help improve the quality of life for the population and the affordability of utility services, ultimately enhancing the overall socio-economic condition of the country.