After several years of heavy energy crisis Tbilisi is experiencing lack of electric energy and natural gas supply, which remains the greatest preventive factor of economic growth and priority problem of the basic demands of citizens.

In the end of 1998 the fundamental changes occurred in the power supply of the city: the Tbilisi distribution net was given over to the private company, which, by means of collection of taxes and settlement of many other management problems, strives to satisfy the city's demands for electric energy.

In Tbilisi (and more so, in Georgia) there is not still any ground for strategies and actions of economized consumption of electric energy. The provision of the consumption network by power remains as the main acute problem. By inertia of earlier existing practice, almost half of the energy worked out has been practically lost or is covered from the state budget because of refusal of consumers to pay fees for the energy consumed.

By expert assessment, not paying fees by inhabitants cannot be the main reason of these losses: there is a need of account of population capable of paying, of implementation of some mechanisms for the population not having the desire of paying and the population being at the edge of poverty, which needs to be protected by state. Funds spent for this part of population are largely insignificant in comparison with those losses, which are in reality (for example, several large enterprises, which do not cover the charges for the energy spent, with the reason of their strategic importance for the country). From the point of view of supplying the population by electric energy, the situation is complicated by the legal procedures and practices between the consumers (families, organizations and other) and suppliers of energy, more correctly, non-existence of these procedures and practices.

Access to electric energy is significantly different by months and is featured by seasonal nature (winter crisis ). Tbilisi takes the greatest stock of electric energy produced, but according to the investigation of the State Department of Statistics, in the winters of 1997 and 1998 the 80% of the families were provided with power less than 6 hours a day.

The power supply for the vitally important institutions, for example, hospitals, also governmental institutions have improved significantly and now there is less number of mortality for the reason of termination of power.

In the multistory buildings of the city, which require large stock of power, the results are even more serious. The water supply of upper floors is very unstable. Oil and gas stoves become the reason of many illnesses and accidents. The well-off part of the population manages to transfer the electric line from some establishment, which is constantly provided with current, which is illegal action, having not been yet regulated.

The power-describing data are not comprehensive yet, but create approximate picture about the change of the situation. From 1990 the total consumption of electric energy has sharply reduced. The individual consumption of total energy almost has not decreased, whereas individual consumption of electric energy has increased.

Energy crisis brought about the new trend, mostly in the fields of trade and services, also individual consumption: self-generation of electric energy with the use of generators of current (working on gasoline fuel) has widely spread. This field is remained practically without regulating (accounting, emission assessment/regulating and others).

One of the main reasons of the crisis is also illegal cut of the wood in green areas of the city by the poor part of  the population.

Energy situation of the city is extremely aggravated by the disturbance of the system of the supply of natural gas in previous years, and its re-operating at low rate. For 65% of Tbilisi population, electric energy is the main source of heating. As a result of this, the system of wiring calculated for less loading cannot endure the current pressure and very frequently is disturbed. As for the sector of nonindividual consumption, the industry and other activities of intensive consuming of energy are facing more serious problems compared with the fields of trade and services: the fluctuation of tension frequently damages the expensive equipment, and, proceeding from this, the industrial production became very seasonal, and, correspondingly, ineffective.