Deposit: What It Is and Why It Is Charged

A deposit is a guarantee amount charged by the supplier and payable by the customer when the grounds provided by law exist. The customer must pay the deposit by the specified deadline.

The deposit ensures the fulfilment of payment obligations for electricity. It is not included in the cost of electricity consumed and is not a fine.

The possibility of charging a deposit and the grounds for doing so are established by law and are not determined at the company’s discretion. A deposit is charged in the cases and according to the procedure set out in Article 24 of the Electricity Retail Market Rules, approved by Resolution No. 47 of the Georgian National Energy and Water Supply Regulatory Commission (GNERC) dated August 13, 2020.

Information about the deposit charge, its amount, the reason for the charge, and the payment deadline is shown on the receipt. Once paid, the amount is recorded on the subscriber’s individual card.

When Is a Deposit Charged?

The Electricity Retail Market Rules provide four grounds for charging a deposit:

1Temporary use of immovable property

2Three or more late payments within a 12-month period

3Suspension of electricity supply due to non-payment for a continuous period of five months or more

4Specific cases involving non-domestic subscribers whose average monthly cost of electricity consumption exceeds GEL 50,000

The following two cases are the most common.

Three or More Late Payments

A deposit is charged not because an outstanding debt exists, but because the deadline specified in the bill for payment for electricity consumed has been repeatedly missed.

If, during a continuous 12-month period, a customer pays an electricity bill after the due date three or more times, this may constitute grounds for charging a deposit.

For example, if one electricity bill is paid several days late, this counts as one late payment. If two more bills are paid late within the same 12-month period, grounds arise for charging a deposit.

2 late payments The customer receives a warning

3rd late payment A deposit may be charged

12 months on time The deposit requirement is cancelled

After two late payments, the customer receives a warning that a deposit may be charged if the payment deadline is missed again. It is therefore important to pay all subsequent electricity bills within the specified payment deadline.

The existence of a deposit does not release the customer from the obligation to pay current electricity bills on time.

The deposit amount is determined based on the average monthly cost of electricity consumption. As a rule, charges for the previous 12 months are used for the calculation. If the customer has used the property for less than 12 months, the calculation is based on the actual period of use.

After the deposit has been paid, its amount is recalculated once every 12 months based on actual electricity consumption.

The deposit requirement is cancelled if all payments have been made on time during the previous 12 months. If another payment is made late, the 12-month period of timely payments starts again.

Temporary Use of Immovable Property

A deposit may be charged to a customer who temporarily uses immovable property, for example, a tenant.

For a temporary user of the property (tenant), the deposit amount is determined based on the charge for the first full month of use.

Six months after the start of electricity supply, the deposit amount may be recalculated based on the average monthly cost of actual electricity consumption during that period.

Thereafter, the deposit amount is recalculated at the end of each 12-month period based on the average monthly cost of actual electricity consumption during the previous 12 months.

The deposit requirement is cancelled when the temporary use or lease of the property ends.

What Happens After the Deposit Requirement Is Cancelled?

The deposit amount paid is reflected as a positive balance on the subscriber’s individual card and may be used toward payment for electricity. If there is no outstanding debt, the amount may be transferred to the customer’s bank account upon application.