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Remetering Transforms Life, Attitudes in Georgian City

Rustavi is a desolate city about 30 kilometers east of Georgia’s capital, Tbilisi. When the Soviet Union collapsed, so too did Rustavi’s many factories, which once provided reliable employment for the city’s residents. In addition to economic collapse, the city also has suffered from a lingering energy crisis.  During the worst of the crisis, it was not unusual for Rustavi residents to have their electricity shut off for more than 16 hours per day.

Eter Tsitskashvili, a housewife and grandmother from Rustavi, enjoys a regular supply of electricity
Eter Tsitskashvili, a housewife and grandmother from Rustavi, enjoys a regular supply of electricity: “Everything has changed upon [the Americans’] arrival. People have learned how to be thrifty. A person must know that everything has a price, including electricity, and it needs to be economized, too. We receive bills now and we always pay. We should tell the truth: those people, the foreigners, have kept their promise. They have helped us to replace the electricity meters, and placed a control system in order. Now we need to support them.”
Photo Credit: Misha Berinashvili

Contributing to the crisis was the fact that most households (80%) did not have electricity meters, which made it impossible for the national utility, the United Energy Distribution Company (UEDC), to account for the electricity it was supplying. Making matters worse, Rustavi citizens were used to receiving electricity for practically free under the Soviet system and so they did not place value on the public good. The frequent blackouts and poor service reinforced this “no-obligation-to-pay” attitude. 

Since service was never disconnected for non-payment, electricity fraud and meter-tampering became commonplace. Electricity bill collectors would collude with residents to misrepresent the amount of energy consumed and pocket a portion of the bills that were paid. As a result, most money paid by Rustavi residents was diverted and hardly any cash was flowing into the United Energy Distribution Company.

In 2003, USAID launched the Georgia Energy Security Initiative, which includes a management contract for the United Energy Distribution Company. In a bold move, UEDC’s new management offered Rustavi customers the choice of either paying $16 for having electricity meters installed or staying without electricity. At first, the public protested vehemently, blocking roads and personally threatening UEDC employees. Then, residents of one apartment building agreed to pay for meters. Within days, UEDC remetered and electrified the building, which stood like a beacon in Rustavi’s darkness. The sight of the lit-up building had an immediate domino effect on the residents of neighboring buildings: within five months, more than 75% of Rustavi was remetered, with no investment from UEDC.

Today, the people of Rustavi enjoy a twenty-four hour supply of electricity. There has not been a single incident of vandalism or meter tampering, because people now understand the benefit of having meters that work correctly. Electricity use in Rustavi has been cut in half while bill payments have quadrupled because people have learned to place value on the electricity they consume. Residents receive regular electricity bills and pay for them at designated cash collection offices. The public is slowly beginning to trust the UEDC as people see the utility eliminate corruption and follow through on its promises.

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Fri, 02 May 2008 12:29:10 -0500
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