Georgian Gov’t taking decisive steps to eliminate illegal business activities that damage national energy sector, says Vice PM Mdinaradze

Georgian Vice Prime Minister and State Minister for Coordination of Law Enforcement Agencies Mamuka Mdinaradze on Monday said the Georgian Government is taking decisive steps to eliminate illegal business activities that are damaging the national energy sector.

In his remarks, Mdinaradze noted that one of the most critical challenges is illegal cryptocurrency mining in the Mestia municipality, stressing that the immense, unregulated electricity consumption has led to chronic power grid overloads, severely impacting both the country's energy infrastructure and the daily lives of local residents and businesses in the popular tourism region.

“The quality of electricity supply is deteriorating because of overloaded networks and transmission lines, while power outages and technical failures are becoming more frequent. This negatively affects not only the local population but also the tourism sector”, he said.

“To illustrate the scale of the problem, electricity consumption in Mestia Municipality reached 133 million kilowatt-hours in 2025, while municipalities of a similar size typically consume no more than 10 million kilowatt-hours. As a result, the damage to the power system and its finances amounts to at least 20–25 million GEL, creating an additional financial burden for all citizens who pay electricity bills. In practical terms, every subscriber in the country pays approximately ₾1.5 ($0,56) extra with each electricity payment because of this issue”, Mdinaradze noted.

He added that a metering process would be launched in Mestia to address the problem, something that had previously been hindered by various obstacles.

“At the same time, it must be emphasized that the sole purpose of metering is to eliminate the illegal and hidden consumption of electricity. Electricity in Svaneti will remain free of charge within the maximum amount required by each subscriber, while consumption above that level will be subject to a limit and a corresponding tariff”, he said.

“Metering will be implemented not only at the individual level but also on a larger scale across villages and settlements, allowing authorities to identify specific areas where the problem exists”, Mdinadze said.

The Vice Prime Minister also emphasised that the law enforcement agencies had already been instructed to provide maximum support and oversight during this process, as well as to identify large-scale illegal electricity consumption and ensure an appropriate legal response.

“We call on everyone to respect this process. Any obstruction or violation of the law will result in a strict legal response”, Mdinaradze concluded.