EVALUATION FINAL REPORT: 
ENERGY SECTOR CIVIL SOCIETY 
INITIATIVES IN GEORGIA
MAY 15, 2006 
This publication was produced for review by the United States Agency for International 
Development. It was prepared by the Academy for Educational Development. 
EVALUATION FINAL REPORT: 
ENERGY SECTOR CIVIL SOCIETY 
INITIATIVES IN GEORGIA
Contract No. DOT-1-00-04-0002-00 
Task Order No. 2, Sub-Activity 9 
Disclaimer 
The author’s views expressed in this publication do not necessarily
reflect the views of the United States Agency for International 
Development or the United States Government. 
© Academy for Educational Development 
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Prepared for: 
Prepared by: 
USAID/EGAT/I&E/E 
Academy for Educational 
Development 
Version: 1.0
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Evaluation of Energy Sector Civil Society Initiatives in Georgia 
Table of Contents 
EXECUTIVE SUMMARY 5
Background 5
Evaluation Objectives and Methodology 5
CENN Program Evaluation 6
Liberty Program Evaluation 7
Summary of Key Findings and Recommendations 8
SECTION 1. INTRODUCTION 12
1.1 Background 12
1.2 Objectives of the Evaluation 12
1.3 Methodology 13
SECTION 2. CENN PROGRAM EVALUATION 13
2.1 CENN Project Partners 13
2.2 Program Objectives and Activities 14
2.3 Activities Completed by CENN 17
2.4 Evaluation Findings 25
SECTION 3. LIBERTY PROGRAM EVALUATION 34
3.1 Liberty Institute Project Partners 34
3.2 Program Objectives and Activities 34
3.3 Activities Completed by Liberty 37
3.4 Evaluation Findings 44
SECTION 4. CONCLUSIONS AND RECOMMENDATIONS 47
4.1 Barriers Faced by Both Projects 47
4.2 Support for the USAID IRs 47
4.3 The Projects: Successes and Limitations 48
4.4 Role of Civil Society Initiatives in the Energy Sector in the Future 49
4.5 Recommendations 51
LIST OF TABLES 
Table 1. CENN Project Outcomes, Outputs and Indicators 15
Table 2. CENN Project Activities 16
Table 3. Planned and Implemented Activities for CENN Project 17-18
Table 4. Statistical Information on ESCA Activities 23
Table 5. Output indicators and achievements for Objective 1 25
Table 6. Output indicators and achievements for Objective 2 28
Table 7. Output indicators and achievements for Objective 3 31
Table 8. Outcomes, Outputs, and Output indicators for the Liberty Project 35
Table 9. Tasks, M&E Criteria, and Activity Indicators 36
Table 10. Tasks, Activities, and Achievements 37
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Table 11. Hotline Operation Data 40
Table 12. Journalist Training Sessions 43
Map of Districts in Tbilisi 30
LIST OF APPENDICES
Evaluation Scope of Work 53
List of Interviews Conducted 55
List of Documents Reviewed 56
Summary of Hotline Calls Received in Tbilisi and Regions 57
Focus Group Summary 61
List of Abbreviations 74
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EXECUTIVE SUMMARY
Background 
The US Agency for International Development (USAID) has been actively promoting civil society 
engagement in transforming the energy sector, with the objective of improving sector 
transparency and accountability. USAID’s Office of Energy and Information Technology, Energy
Division (EGAT/EIT/E) issued a global Annual Program Statement (APS) in March 2003 to 
solicit proposals from non-governmental organizations (NGOs), academic institutions, and other 
organizations working to strengthen civil society. The APS encouraged creative approaches in 
support of USAID’s energy sector governance program that could provide models for replication 
and scale-up. 
USAID received two proposals from NGOs in Georgia in response to the APS: The Caucasus 
Environmental NGO Network (CENN) and Liberty Institute. Both the CENN and Liberty 
programs were designed to “increase public understanding of, and participation in, decisions 
regarding delivery of energy services”, one of the objectives of the APS. The Liberty Institute’s 
program, “Towards Public Accountability in the Energy Sector”, was implemented in the period
January 2004 to June 2005. CENN’s program, “Development of Local Capacities and Public 
Awareness for Better Energy Governance”, November 2003 until August 2005. USAID 
contracted with the Academy for Educational Development (AED) under the People, Energy and 
Development IQC mechanism (Contract #DOT-I-00-04-00002-00) to conduct an evaluation of 
the two NGO programs. 
Evaluation Objectives and Methodology
The evaluation’s primary objective is to assess the impact of the two NGO projects, including
outputs and outcomes, their effectiveness and potential for increased effectiveness, barriers,
and the benefit of civil society involvement measured against the cost. The impact assessment
considered whether or not these two programs provided support for USAID/Georgia’s IRs. The
evaluation also explores the need for an independent consumer rights/advocacy organization
within the transition process in the energy sector. Finally, the evaluation team was also asked
to comment on the replicability of these two programs within Georgia and the value of similar
programs in other countries. 
The AED evaluation team consisted of two US consultants (Ms. Mary Worzala and Dr. Reehana
Raza) assisted by a Georgian firm specializing in field research (GORBI Research). Prior to the
field work, the team collected project documents, clarified evaluation questions with USAID,
developed a list of stakeholders, and defined a framework for evaluating the outputs and impact 
of the programs. Interviews were conducted with USAID/Washington staff and several 
stakeholders prior to the field research. The evaluation team spent two weeks in Georgia
conducting interviews with 19 different organizations in Tbilisi, Kutaisi and Akhaltsikhe (see
Appendix B). Four focus groups were conducted with project beneficiaries, including two in
Tbilisi on the CENN program and one each in Kutaisi and Akhaltsikhe on Liberty’s program. A
meeting was also conducted with Georgian media representatives, and was attended by 16
journalists. USAID, CENN and Liberty all reviewed and commented on the draft version of the 
report. The two programs were largely evaluated separately; however, there was a significant
amount of collaboration between the organizations and an overlap in the stakeholder group. In
addition, both programs were designed in support of the same USAID objective. 
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CENN Program Evaluation 
The CENN project, Development of Local Capacities and Public Awareness for Better Energy 
Governance, sought to ease existing tensions in the Georgian electricity sector through the
strengthening of energy sector governance. The objective of the project was to enhance 
transparency and establish bottom-up accountability through community mobilization, public
education, and consumer representation in Tbilisi. The project established Energy Services
Consumers’ Association (ESCAs) in six districts1
 in Tbilisi to serve as liaisons between 
consumers, state institutions, and private companies at the local level. The goal of these
organizations was to empower citizens, and to provide the necessary skills for them to 
effectively serve as consumer advocates in the energy sector. Consumers were also made
aware of their responsibilities as consumers of electricity in a market economy. CENN’s 
activities were focused in Tbilisi in the service territory of Telasi, the electricity distribution 
company that is owned by the Russian company, RAO UES. Between the period of the project
proposal and its implementation, the distribution company was sold to RAO UES. 
CENN Program Key Findings 
The Evaluation Team found that the ESCAs played a successful mediating role for consumers 
and provided a focal point for registering complaints as well as mechanisms to address and
resolve them. The ESCA’s advantage was that it was perceived by consumers as non-partisan,
with access to key stakeholders, and direct access to solve their problems. In a transitional 
power sector, the ESCAs played a key role in helping the community take ownership of the
problems they were facing, and realize that they could have a role in solving them. Reliance on
the state for solving problems and maintaining community spaces resulted in community needs
not being addressed properly. Through CENN’s program, residents came to realize that they 
could affect changes in their communities. Telasi also recognized the value of ESCAs as well￾informed intermediaries that were and deeply involved in their communities, which helped to
increase collections and reduce Telasi’s commercial losses. The strong relationship between
CENN and the distribution company contributed to the success of the project. 
CENN’s natural leadership approach worked through extensive mobilizing efforts and allowed 
natural community leaders to come forward, bringing a community network and established
relationships to the project. Recruitment of “natural” leaders was one of the key elements in the
success of CENN’s activities. The ESCA leaders were already involved in their communities,
and the CENN program provided the tools and skills that they needed to be more effective. 
Providing minimal compensation for the ESCA leaders meant that their commitment was 
genuine and not motivated solely by financial compensation. 
There was great flexibility in how each of the ESCAs was set up. Mobilizers were encouraged
to think independently and respond to the situation on the ground. Leaders were based in their
communities and communicated with residents on a daily basis to help resolve problems. 
ESCA offices were established in locations that made sense to each leader – in a school,
apartment building, or community building. 
By September 2004, all six ESCAs were established. Training was provided to ESCAs on 
specific energy subjects and development of operational plans. The ESCAs also worked
together to identify the problems common to all their districts. These included: 
 
1 The six districts were Nutsubidze, Varketili, Didube, Okrosubani, Avlabari and Nadzaladevi 3 The six districts were Nutsubidze, Varketili, Didube, Okrosubani, Avlabari and Nadzaladevi 
6
• Old debts 
• Flat rates despite the existence of meters 
• Electricity theft 
• Poor communication between Telasi and Consumers 
• Seasonal tariffs 
• Problems related with the installation of new electric meters 
Mobilization around a concrete issue in one sector helped the mobilization process and
provided a focus for ESCA activities. Support for the ESCAs increased with the achievement of
concrete results. Resolving small problems effectively and addressing community concerns 
built credibility in the effectiveness of the ESCAs. CENN, with the ESCAs, worked closely with 
the municipality to resolve neighborhood issues, including street-lighting and other community￾wide concerns. 
Over time, the ESCAs have had a number of successes. These include: 
• organizing condominium associations to solve illegal connections, electricity theft, and
problems related to malfunctioning elevators; 
• mobilized neighborhoods to pressure municipalities to solve the lack of street-lighting;
• negotiated with Telasi to post rights of electricity service consumers in the Telasi 
Business Center; 
• regular public consultation meetings are held by ESCAs where consumers can discuss 
their problems; and 
• debts were recalculated and paid and electricity service was re-assumed for individual 
consumers. 
The consolidation of the six ESCAs into a national ESCA with an expansion of its role both
functionally (from electricity to a range of services) and geographically (from six neighborhoods 
to all of Tbilisi) may be too rapid. There are questions about how the new ESCA structure will 
affects its ability to continue to solve problems at the neighborhood level. The new structure of 
the association envisions activity both at the grassroots level and the policy level. The ESCAs’
success may be diluted as a national organization without grassroots mobilization or extensive 
interaction with key stakeholders in sectors other than electricity. Finally, the ESCA is not yet
well-established enough for people to pay for their services, and most of the people who used
their service are disadvantaged. Financial viability going forward is a concern. 
Liberty Program Evaluation
The Liberty Institute project, Towards Public Accountability in the Energy Sector, was designed 
to raise awareness of journalists, politicians and the general public concerning energy sector 
issues, and to promote transparency and accountability in the energy sector. This objective was 
to be accomplished by raising public awareness of energy issues, monitoring developments in
the energy sector for corruption, increasing the accountability of politicians and political parties 
on energy sector issues, and increasing media capacity to provide coverage of the energy
sector. The Liberty project worked mostly at the national level in raising awareness through its 
media activities, but also worked regionally through a program of town hall meetings,
information dissemination and the establishment of consumer hotlines. 
The media capacity-building program strengthened contacts between journalists and key 
players in the energy sector. The journalism program was highly regarded by journalists and
stakeholders who participated in the training and awards programs. The Liberty newsletters 
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and energy user’s guides were distributed to those who expressed an interest in energy issues 
and to stakeholders in the energy sector. Media monitoring provided good information for
energy stakeholders, was used in planning the winter energy campaign conducted by the 
Ministry of Energy and Fuels (MEF), and was useful to the other energy stakeholders.
Energy stakeholder meetings were held jointly with all key players in the energy sector. 
Stakeholders felt that these were useful forums, and because they were held regularly, there
was the necessary continuity to tackle important issues. The Liberty program created space for
public dialogue through radio programs, radio bridges, town hall meetings, roundtables and 
other activities. Liberty had a strong partnership with MEF and the USAID-funded energy sector 
public outreach and participation project. Together, they collaborated on town hall meetings,
public service announcements, radio programs, and the March 2005 survey was revised to
include questions that were important to MEF. It is difficult, however, to concretely measure the 
effectiveness and impact of these information and outreach activities. 
Liberty’s town hall meetings successfully diffused tensions in a highly politicized environment;
however, they were not sustained interactions that allowed citizens to resolve their problems. 
Town hall meetings brought together representatives from the United Energy Distribution
Company (UEDC), MEF, and NGOs to discuss problems and provided a forum for consumer 
complaints to be expressed. The town hall meetings were held at a critical juncture in the
regions, during the period of installation of communal meters. Despite UEDC publicity 
campaigns, residents in the affected communities were not adequately prepared for this
change, and were outraged and confused. Liberty provided a forum in the town hall meetings to
vent this anger and clarify consumer concerns. 
Changes in project management and partners may have affected the continuity of the Liberty 
project’s activities. Regional staffs assigned to the project were working on other Liberty 
projects at the same time. While Liberty provided visibility and authority to citizens’ concerns in
energy sector issues, the multiple staff roles may have diluted their influence in solving energy 
sector concerns. The hotlines created another mechanism for citizens to voice their concerns; 
however, inadequate institutional structures were in place for the hotlines to solve consumers’ 
complaints.
Liberty never received strong support or interest from UEDC; their involvement and support was 
variable, especially at the beginning. It appeared from comments made that Liberty and UEDC 
had a somewhat antagonistic relationship at times. UEDC managers were often changing, on 
average every six months, which made it difficult for Liberty to liaise between consumers and 
UEDC. Liberty did not have much contact with GNERC, the Georgian energy regulatory body.
Liberty could potentially have advocated for consumers in the communal meter hearings held by 
GNERC, however, these hearings were held after the project ended. 
Summary of Key Findings and Recommendations to USAID 
ESCAs have proved effective as grassroots organizations which offer consumers some 
recourse for their problems in the electricity sector, and other sectors, particularly for the poorest
consumers. Through this interaction, consumers feel more confident about resolving problems
with the distribution company and are empowered. ESCAs have also represented consumer 
interests at government bodies, specifically at GNERC. However, the evaluation team found
little evidence that they have been particularly effective in the GNERC context. This may be the
result of two factors: one that the ESCAs are at an early stage of their development and as yet 
are not capable of playing such a role and second, that the regulatory process in Georgia is 
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weak and there is little real opportunity for consumer interest groups to make meaningful 
contributions to policy making. Nevertheless, the ESCAs clearly have acquired a national 
presence. 
Although the Liberty project did not plan to play an active intermediary role between consumers 
and the UEDC, circumstances (communal metering) made intermediation necessary. Despite
the lack of preparedness for this activity, Liberty’s interventions were often beneficial. Local 
Liberty offices represented consumer interests in resolving some of these problems. 
There is clearly a need to consider the establishment of community-based organizations like
ESCAs in the regions. Communal meters are still causing tension and are not widely 
understood or accepted. A planned tariff increase planned will inevitably prove contentious both 
in Tbilisi and the regions. Even more challenging is the upcoming shift from communal meters
to individual meters and the planned sale of UEDC to a private investor in the summer of 2006. 
All of these changes will be challenging for consumers who have already had to accept 
significant changes in their electricity supply. In such a context, a third party intermediary would
prove useful. 
The ESCA approach pioneered by CENN is at a crucial stage. The recent formation of the 
national ESCA and its expansion both geographically and functionally may undermine its very 
strength as grassroots organizations. Geographically, ESCA leaders continue to be located in
their local neighborhoods and have a presence in their local communities. However, the
centralization of the ESCA offices as well as ESCA leaders’ involvement at a more national level
may undermine the local links. ESCAs were always active in a number of sectors beyond
electricity. However, their official expansion in these areas without the necessary lead up
training—particularly familiarity with each sector and their key stakeholders—could lessen their
effectiveness. CENN justified the formation of the association for sustainability, as well as, for 
the purpose of moving ESCAs centre stage on the public policy arena as the consumer 
organization. Although these steps are very justifiable, much more attention needs to be given
to how ESCAs will manage these multiple roles, and whether the existing proposed structure is
the only one to ensure the ESCAs’ effectiveness and sustainability. 
ESCA type organizations clearly serve two functions and are relevant both in transitional and in
more stable electricity environments. They can be a conduit for public information but more 
importantly, they can represent organized consumer interests, essential in an efficient 
democratic process. 
Existing outreach programs serve an informational need or a social marketing approach rather 
than actively resolving problems that consumers face. UEDC and Telasi have customer service
departments, but from the comments heard in the evaluation, it was clear that there remains a 
lot of distrust and lack of satisfaction and a need for a consumer representative body. Although
a public advocate exists at GNERC, it is not an easy forum to access. The consumer advocate 
is there to help resolve problems with different arms of the sector, but is a forum of last resort.
Resolution at a lower level, i.e. the neighborhood levels—the level at which ESCAs’ work may 
be more efficient and less contentious. 
Recommendations 
1. Support for the ESCA should continue for at least another year. During this period, a
means of self-financing needs to be found to allow the ESCA to be institutionally and financially
sustainable. Currently, the ESCAs are trying to establish a user fee model. However given their 
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client base, which is mainly consumers at the lower income spectrum, this is not likely to be a
viable approach. 
2. The ESCA’s role and the level at which it can be most effective as a lobbying 
organization needs to be reviewed and analyzed. Currently, the ESCA Association is covering
multiple roles including condo/neighborhood association as well as functioning as city-wide
advocacy organization. It is likely that it cannot fulfill all of these roles successfully. 
 
3. There needs to be a carefully consideration of the expansion of the ESCAs to the UEDC 
area. One of the possible suggestions has been to utilize the ESCAs themselves to lead the
formation of similar organizations in the UEDC area. However given the current limited capacity
of the ESCAs, it is recommended that they not serve as the primary drivers of this activity. 
Furthermore, this may also not be sensible as it contradicts a central platform of CENN’s 
success in establishing the ESCAs in Tbilisi. The success of the ESCAs has largely been due to
local mobilization and the process of selecting ‘natural leaders’. Knowing the community and
building confidence in the project at the local level have been central elements of the ESCAs’
success and will play a key role in their success in the UEDC regions. For the UEDC regions,
the formation of the ESCAs will need to follow a similar confidence-building approach. The
ESCA leaders from Tbilisi can play a role in training or sharing experiences, but are unlikely to 
be the leaders in the regions. 
4. ESCAs need access to specialized resources, both technical and legal, to strengthen 
their effectiveness and scope. ESCA leaders mentioned that they need support on internal 
building issues (elevators, hallway lighting, stairways, roofs, etc.), electricity consumption in 
internal networks, and legal support to deal with the specific legislation on consumer rights and 
to strengthen their ability to defend consumer rights. 
5. ESCAs can also play a watchdog role at the municipal level, ensuring transparency of
municipal services contracts and municipal expenditures on neighborhood improvements. This
role needs to be strengthened but must be considered in light of the overall assessment of 
ESCAs’ role (Recommendation 2). 
6. Despite USAID and other donor investments in the regulatory process in the past, there
is a continued need to strengthen such activity in order that a public space is created for public 
participation at the policy level. To this end, training and institution building for GNERC, ESCA, 
and citizens needs to continue. Currently ESCA leaders participate in the policy process at
various levels, particularly with the municipality and GNERC. To strengthen the regulatory 
process, more training is required both for ESCAs and GNERC. ESCAs need to be taught how 
to approach regulatory issues and how to participate in the regulatory process. The regulatory 
body, despite its function, also has a limited understanding of the role of civil society in the 
regulatory process. The current view is that ESCAs are a medium through which public 
information can be shared rather than a valid means through which consumers ‘voices’ on 
electricity service delivery can be heard and incorporated in the policy-making process. New 
government legislation which will decentralize local government will have implications for how
ESCAs can influence the local policy and decision-making process. Consumer organizations 
like ESCAs can participate in the policy making process at a decentralized level. All these
aspects of training and institutional building will strengthen ESCAs’ (and other future consumer 
organizations) effectiveness. 
7. A fully functioning, democratized energy sector requires public participation at various 
levels. There is a need to develop the capacity of think tanks, academics, and journalists who 
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can be well-informed voices to help ensure transparency and accountability in the sector, and
ensure that alternative views are expressed and accounted for in the policy-making process. 
 
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1.0 INTRODUCTION 
1.1 Background 
The US Agency for International Development (USAID) has been actively engaged in promoting
the role of civil society organizations in transforming the energy sector, with the objective of 
improving sector transparency and accountability. In this context, USAID’s Office of Energy and
Information Technology, Energy Division (EGAT/EIT/E) issued a global Annual Program
Statement (APS) in March 2003 to solicit proposals from non-governmental organizations 
(NGOs) and academic institutions. The APS was intended to support creative approaches 
within the NGO and academic community to promote the energy sector governance program. 
The areas of special interest in the APS included: 
• Improving policy, legal, and regulatory frameworks to establish necessary conditions of 
energy service delivery; 
• Increasing institutional ability to provide or deliver energy management services; and 
• Increasing public understanding of, and participation in, decisions regarding delivery of 
energy services. 
USAID received two proposals from Georgia and, based on favorable evaluation, awarded 
cooperative agreements to the Caucasus Environmental NGO Network (CENN) and the Liberty
Institute. Both CENN and Liberty have been active members of the NGO community in Georgia
for many years. For the most part, both NGOs were involved in problems outside of the energy 
sector, with CENN focused on environmental problems in the region and Liberty focused on 
human rights. Prior to the APS issuance, the NGO community in Georgia became more aware
of the problem of energy sector corruption through a presentation made by one of the USAID 
contractors working in the sector. USAID staff working in the Democracy and Governance
sector also attended the presentation, and became convinced that the NGO community had a 
role to play in increasing the transparency and promoting good governance in the energy sector. 
When the APS was released, there was a convergence of interest and opportunity which 
resulted in the CENN and Liberty proposals. USAID staff and contractors working with the NGO 
community made them aware of the opportunity and helped them to think through the objectives 
and strategies of their programs. This support was an important factor in the eventual success
of these two programs obtaining funding. 
Both the CENN and Liberty programs were designed in support of the third area of interest:
increasing public understanding of, and participation in, decisions regarding delivery of energy
services. The Liberty Institute’s program, “Towards Public Accountability in the Energy Sector”,
was implemented in the period January 2004 to June 2005. CENN’s program, “Development of
Local Capacities and Public Awareness for Better Energy Governance”, was initially scheduled 
to take place over the same time period, but was given a no-cost extension to continue work
until August 2005. USAID contracted with the Academy for Educational Development (AED) 
under the People, Energy and Development IQC mechanism to conduct an evaluation of the 
two NGO programs. 
1.2 Objectives of the Evaluation
Based on the Scope of Work for the evaluation (included as Attachment A), and discussions
with USAID, the primary questions which were addressed in the evaluation include: 
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1. Evaluate the impact of CENN and Liberty projects, including outputs and outcomes. 
 
2. Evaluate: a) effectiveness of projects; b) potential for increased effectiveness; c) barriers to 
achieving objectives; and d) benefit of civil society involvement measured against the cost. 
3. Do these two projects support USAID/Georgia's IRs? If so, how do they support the IRs? 
The primary focus was on IR 1.51.1, "Improved Commercial Performance of Energy Sector 
Entities, Sub-IR 1.51.1.2, "Increased Public Trust in the Energy Sector". 
4. Within the transition process in the energy sector, how necessary is it to have an
independent consumer rights/advocacy organization as opposed to customer service 
departments within the utility and/or ministry? To what extent were these projects able to 
organize political voice, whether through the ESCAs or other activities, and how does the 
customer department within the distribution company play a role in this, if at all? 
5. Should the Georgia Mission continue to fund civil society projects in the energy sector?
What particular elements were either successful or unsuccessful in these two projects? How 
replicable are these two projects in other areas of the world? 
1.3 Methodology
The methodology used in the evaluation of these two programs was to employ multiple research 
tools for information gathering and to pursue a verification process through triangulation. The 
research tools used to gather information included: 
• focus groups with beneficiary groups 
• semi-structured interviews with key stakeholders 
• document review of the two NGOs and additional relevant materials 
• data from the distribution companies on key measurable outputs (as available) 
The two programs were largely evaluated individually with the focus on the merits of each 
program. However, there was a significant amount of collaboration between the programs and 
an overlap in stakeholder groups. In addition, both programs support USAID’s objective of 
increasing transparency in the sector. The evaluation report presents the activities and
accomplishments of each program separately, with the CENN and Liberty programs included in 
Section 2 and Section 3, respectively. Section 4 addresses the role of civil society 
organizations in the energy sector more broadly, and contains recommendations that have
resulted from the evaluation work. 
2.0 CENN PROGRAM EVALUATION 
2.1 CENN Project Partners 
The CENN project, Development of Local Capacities and Public Awareness for Better Energy 
Governance, sought to ease existing tensions in the Georgian electricity sector through 
strengthening energy governance. In the past, tensions in the sector have been unusually high. 
Georgians have had to accept new market rules in the electricity sector, which have not always
been accompanied by improvements in the quality of service. The objective of the project was 
to enhance transparency and establish bottom-up accountability through community 
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mobilization, public education, and consumer representation. The project established ESCAs 
(Energy Services Consumers’ Association) in six districts3
 to serve as a liaison between 
consumers, state institutions, and private companies at the local level. The goals of these
organizations were to empower citizens, and to provide the necessary skills for them to 
effectively serve as consumer advocates in the energy sector. Consumers were also made
aware of their responsibilities as consumers of electricity in a market economy. All six of the
ESCAs are based in the Georgian capitol, Tbilisi. 
The project was implemented by an NGO coalition led by CENN. The coalition included CENN,
Green Alternatives, and Eco-Vision. The project team also collaborated with the Liberty Institute
and Green Wave at different points of the project. The project manager was based at CENN
and was responsible for coordinating with each of the coalition partners. Each NGO in the 
coalition had discrete tasks: CENN was primarily responsible for local capacity building,
mobilizing, establishing the ESCAs and preparing aspects of the public awareness activities; 
Eco-Vision was responsible for the school campaign; and Green Alternative prepared and 
broadcast the TV and radio programs. The first phase of the project lasted from November
2003 to April 2005, with a no-cost extension granted by USAID in April until August 2005.
Levan Tavartkiladze was the project-manager in the first phase and staff turnover was limited
during this period. Levan Tavarkiladze left at the end of the first phase, and Nika Malazonia
was hired as the new project manager. 
A number of surveys and analyses were undertaken in the project preparation phase to inform
the coalition of the state of affairs in the sector. Local capacity building and mobilization for 
laying the groundwork for the ESCAs began in summer of 2004 and the ESCAs were 
established in September 2004. Several training sessions were held both to train the mobilizers 
as well as to build up the capacity of the ESCAs. Parallel to this, a number of activities took 
place to build up public awareness. Public awareness activities included implementing a school 
campaign for energy awareness, preparing and broadcasting TV and radio programs, and 
putting together publicity materials and other public information documents related to the
ESCAs, consumer rights and energy sector governance. 
2.2 Program Objectives and Activities 
2.2.1 Anticipated Outcomes/Results
According to the project proposal, the CENN project aimed to: 
… increase the transparency and efficiency of performance and consumption in the energy 
sector, through community mobilization, confidence building, increasing public awareness 
and citizens’ responsibility over the resources’ use, creation of ESCAs (Energy Services 
Consumers’ Association), increasing public participation in the decision-making processes 
at al levels and launching a nation-wide constructive dialog between all stakeholders on the
energy sector governance” (extract from project proposal). 
There were three overriding objectives for the project: 
1. Creating a more aware and responsible consumer 
2. Establishing performing ESCAs 
3. Responsible and accountable energy entities 
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The ESCAs also had specifics objectives. These included: 
• Building public education and responsibility; 
• Monitoring decisions and performance in the energy sector, and sharing the information 
with consumers (watchdog system); 
• Mediating disputes between private consumers and electricity distributors; 
• Lobbying for reforms that lead to better and more equitable electricity provision for 
consumers; and 
• Acting at grassroots level as consumers’ right protection units (advocacy). 
2.2.2 Project Objectives and Indicators 
Prior to the conducting the field work, the evaluation team prepared the following table showing 
program objectives/outcomes, project outputs and output indicators. The anticipated outcomes,
outputs and indicators are taken from CENN’s proposal and the project documents. 
Table 1. CENN Project Outcomes, Outputs and Indicators 
Outcomes/Objectives Outputs Output indicators 
More aware and
responsible consumer
Existing tensions in the 
sector will be reduced 
Establishment and 
performance of ESCAs
ESCAs recognized by all 
stakeholders as the 
legitimate representative 
of consumers 
Responsible and 
accountable energy
entities 
Existing tensions in the 
sector will be reduced 
Changed public
behavior and increased 
public awareness and 
participation in 6 pilot 
districts in Tbilisi 
Number and capacity of 
established and 
functioning ESCAs 
Energy entities that are 
responsible and
accountable to the 
public 
-payment rates 
-number of non payment cases 
-amount of illegal consumption 
-change in attitude as per public opinion surveys 
-participation in public meetings
-public pressure and lobbying at different levels 
-quality and quantity of public input in decision making 
-number of organized meeting with concerned parties 
-number of public requests and visits to ESCAs 
-number of disputes resolved at ESCAs' level 
-number of proposals/recommendations presented 
-number of recommendations developed by ESCAS and utilized 
by the state 
-number of disputes resolved at the level of GNERC 
-number of roundtables and public consultations meeting 
organized by the MEF
-number of public meetings held by the Energy Committee of
Parliament 
-number of proposal submitted by ESCAs on legislative initiatives 
considered by the Energy Committee of Parliament 
-Improved electricity services in the 6 districts
-Functioning ESCAs mimicking condominium management units 
15
2.2.3 Planned Activities of the CENN Project 
Similarly, the evaluation team prepared a table linking the broad objectives set by the project
with key activities and activity indicators. These activities were included in the CENN’s proposal, 
as were the activity indicators. 
Table 2. CENN Project Activities 
Outcome 
Objective 
Planned Activity to Achieve Objective Activity Indicator 
More aware and 
responsible 
consumer
Existing tensions 
in the sector will 
be reduced 
Establishment 
and performance 
of ESCAs 
ESCAs recognized 
by all stakeholders 
as the legitimate 
representative of 
consumers 
Responsible and 
accountable 
energy entities 
Existing tensions 
in the sector will 
be reduced 
-Organization of general multi-stakeholder meeting 
-Implementation of small grants program
-Delivering on-going training and training the 
trainers course 
-Preparation and publication of the best examples 
and practice of good governance 
-Broadcasting of TV and Radio programs 
-Implementation of school campaign 
-Development of district specific strategy
-Community mobilization 
-Creation of ESCAs 
-Election of the council of ESCAs 
-Creation of database of ESCAs in Tbilisi 
-Implementation of small grants program
-Delivering on-going training and training the 
trainers course 
-Organization of workshops for ESCAs and 
municipality 
-Preparation and publication of general materials 
for ESCAs
-Development and transfer of recommendations to 
the relevant authorities 
-Preparation of TV and Radio programs 
-Organization of general multi-stakeholder meeting 
-Organization of experts' (trimestrial) meetings 
-Organization of workshops for ESCAs and 
municipality 
-Development and transfer of recommendations to 
the relevant authorities 
-Implementation of purposeful lobbying of rules 
and regulations directed toward sustainable 
development of the energy sector 
500 copies of the leaflet 
describing best example are 
published and distributed 
10,000 copies of leaflets, 
brochures on rights and 
responsibilities distributed 
50 broadcast on local radio
and TV 
database of ESCA is created 
16
2.2.4 Monitoring and Evaluation Plan
The monitoring and evaluation (M&E) plan for the project was developed around the three key 
objectives, with outputs and activities linked to these objectives. Both the output indicators as 
well as the activity indicators were included in the M&E work plan outlined by the CENN 
coalition. 
The M&E framework however raises a number of issues: 
• Objectives 1 and 3 were ambitious particularly given the timeframe of the project. It
would have been beneficial for the project if the objectives were broken down more 
carefully into more concrete outputs 
• The output indicators were not always appropriate indicators for the output desired the
timeframe of the project 
• The activity indicators were not always clearly related and many were left undefined 
Given what was achieved in the projects, focusing solely on the indicators given in the M&E 
framework may under-represent all that was done by CENN and its partners. In our evaluation, 
we examine these indicators but reflect beyond them to highlight the strengths of the project. 
2.3 Activities Completed by CENN 
The evaluation team verified the completion of the tasks as reported by the CENN project team 
through interviews and document review. In this section, we will note areas where CENN’s
work was particularly successful, where questions remain about the completed work or where 
the work could have been more effective. Table 3 lists CENN’s activities and achievements, 
and notes particular accomplishments. Following Table 3 is a narrative on the implemented
activities. 
Table 3. Planned and Implemented Activities for CENN Project 
Planned 
Activity
Number of 
Stakeholder 
Meetings 
Implementation of 
Small Grants 
Program 
Deliver ongoing
training and training of 
trainers (TOT) course 
Preparation and 
publication of best 
practices of good 
governance 
Broadcasting TV and 
Radio programs
Implemented
Activity
9 multi-stakeholder 
meetings organized 
2004-2005 
6 ESCA (12 leaders 
total) given 
$220/month for
transportation and 
expense 
reimbursement 
8 trainings conducted. 
2 for teaching
community
mobilization skills; 6 for 
building ESCA 
capacity
Public Participation in
the Energy Sector 
Governance published 
rather than leaflets 
-5 PSAs prepared 
-Radio shows 
prepared by Liberty
and Green Wave 
Radio 
-Monthly articles
published 
Comments Stronger awareness 
among stakeholders 
of CENN’s project 
and ESCAs 
Perception among 
ESCA leaders that 
the grant was in lieu 
of salary. Raises 
question of 
sustainability 
-Concrete training; 
operational and action 
plans around which 
ESCAS structure their 
activities were 
developed 
-There was a view that 
-CENN published 
additional materials as 
need arose 
-Focus group raised
issue that ESCA 
clients did not use the 
publications 
17
training should be 
offered to ESCAs on 
how to conduct
themselves and 
prepare for forums. 
-Publications were 
praised by government 
stakeholders 
Objective 1 & 2 1 & 2 1 & 2 1 1 & 2 
continued, Table 3. Planned and Implemented Activities for CENN Project 
Planned 
Activity
Implementation of 
the School Program 
Development of
District-specific
strategy
Community
Mobilization 
Creation of ESCAs Creation of database 
of ESCAs in Tbilisi 
Implemented
Activity
-Prepared program 
on energy safety
-Textbooks and 
workbooks prepared
-Teachers trained in 
6 districts 
-Calendar, poster, 
and painting 
competition; trips to 
Gardabani and
Telasi conducted for 
children 
Individual strategies 
developed in each 
district 
-4 mobilizers trained 
-12 ESCA leaders 
identified and trained 
6 ESCAs established ESCA database 
created; maintains 
information on clients 
served and problems 
solved 
Comments Well received 
project. Ministry of 
Energy is seeking 
funding to scale up 
the program to 
create a national 
curriculum. 
CENN staff viewed 6 
neighborhoods as 
quite ambitious
Selecting natural, 
independent activists 
in the community
jump-started the 
building of trust and 
credibility for ESCAs 
ESCAs seen as
legitimate 
intermediaries 
between consumers 
and other energy
sector stakeholders. 
Question of 
sustainability remains. 
A mobile population 
and booming property
market make database 
difficult to maintain. 
Names in database 
are often incorrect. 
Objective 1 2 2 2 2
Planned 
Activity
Organization of 
workshops for 
ESCAs and 
municipalities 
Development and 
transfer of 
recommendations to 
authorities 
Organization of 
experts’ (trimestrial) 
meeting 
Implementation of 
purposeful lobbying of 
rules and regulations 
directed toward 
sustainable 
development of the 
energy sector 
Implemented
Activity
No separate 
workshops held
between ESCAS
and Tbilisi 
Municipality. Tbilisi 
Municipality was 
present at a monthly 
stakeholder 
roundtables 
29 recommendations 
and proposals 
presented by ESCAs 
to Telasi and GNERC 
A regular part of the 
project was to hold 
meetings with key
experts. 
ESCAS systematically
put bottom-up 
pressure to promote 
rules and regulations 
directed toward 
sustainable 
development of the 
energy sector 
Comments Municipality viewed
their partnership as 
with CENN. ESCAs 
without CENN would 
be weakened 
ESCAs have been 
successful with
implementation of 
their 
recommendations by
the Municipality and 
Telasi, but not 
GNERC 
To date they have not 
been able to influence 
system-wide change 
Objective 2 & 3 2 & 3 3 3 
18
2.3.1 Activities under Objective 1: Creating a more aware and responsible 
consumer
Stakeholder meetings 
The objective of the stakeholder meetings was to share information, assess stakeholders’ 
concern and build greater transparency. In total, nine multi-stakeholder roundtable meetings 
were organized through 2004-2005 in collaboration with Liberty. These were monthly events
held on the last Friday of every month; the first one was held in October 2004. As a precursor 
to holding stakeholder meetings, CENN interviewed stakeholders in the sector to identify their 
legal obligations and responsibilities and determine how they could contribute to the project.
Overall, one indication of the success of this strategy of intensive interaction and information 
sharing is the greater awareness among the key stakeholders in the electricity sector of
CENN’s project as compared to Liberty’s. The Evaluation Team met a range of stakeholders 
who were aware of the project and were positive overall about the project’s activities. 
Small grants program 
The small grant scheme was designed to offer the ESCAs financial support based on the 
priorities they identified. This was not how the grant scheme was implemented. Rather then 
being one-time payments for specific activities, the funds were used for sustained monthly 
payments to the ESCA leaders. ESCA leaders viewed these payments as a stipend which,
during the project period, strengthened their perception that they were employees of CENN. 
The monthly payments will need to be eliminated to ensure that the ESCAs are sustainable in
the long run. Overall, the project was very good at keeping the ESCAs’ costs low for purposes 
of enhancing sustainability potential. 
Training and train the trainers courses 
Training sessions were offered in two areas: training the mobilizers, and capacity building for 
the ESCAs. The training for the mobilizers was conducted in January 2004. Since the training 
material was available only in Georgian, the evaluators were not able to assess the quality of 
the material. However, during the evaluation, the CENN project manager emphasized the
importance of the training for developing the mobilization strategy for the ESCAs. Previously, 
CENN had no experience in community mobilization and this training enhanced CENN’s ability 
to design a successful mobilization strategy and plan. ESCA training focused on both energy 
issues and skills to develop operational and action plans. ESCA leaders were already active
members of the community, but the training helped them to be more persistent about solving 
problems. One ESCA leader that noted problems had always existed but often remained 
unsolved. Now, she does not give up easily as she has learned to approach the problem and 
where to apply to solve these problems. Training topics included: 
• Legal framework of electricity supply and cut-off 
• The contract between customers and Telasi 
• Ownership of electricity meter 
• The different billing systems from 1999 onwards 
19
• Electricity theft and non-payment of electricity bills 
• Social subsidies 
• Working with municipalities on communal problems 
The training on billing systems, electricity theft and non-payment of electricity and social 
subsidies were critical for undertaking debt restructuring. Particularly useful was the debt
calculation matrix for calculating debt based on rooms and water capacity, which ESCA leaders
used to negotiate with Telasi. 
In the Evaluation Team’s meetings with key stakeholders, particularly at GNERC and Telasi, 
there was a view that ESCA leaders needed to be trained to prepare for and conduct
themselves in a public forum. This training would be useful in the next phase of building the 
ESCAs’ capacity. 
Preparation of best examples and practices of good governance 
This activity was part of the public outreach/education strategy. Originally, leaflets on the
practice of good governance were planned. Instead, CENN put together a publication entitled 
“Public Participation in Energy Sector Governance.” CENN also put together a number of
publications in response to particular gaps in their public outreach strategy. These included 
“The Citizen’s Guide for Electricity Consumers and Tariff”, which was distributed during 
meetings and to relevant stakeholders. The documents were generally well received by 
stakeholders within the government. However, customers who participated in the focus groups
admitted that although they received these publications, they rarely looked at them; it was much 
easier to get ESCAs to solve their problems. It may have been useful to offer consumers a brief
training on how they could use these documents, or to offer this information in a more
accessible form. 
Media program 
Other key elements of the public outreach programs were the TV and radio programs. In total, 
four short (30 second) and one long public service announcements (PSA) were created. These
programs were aired from November 2004 to March 2005. A regular monthly radio program on
the ESCAs activities was put together in collaboration with Liberty and aired on Radio Green
Wave. A documentary on the project’s activities was also produced that was approximately 20
minutes long and focused on ESCA activities. The documentary was aired at a local cinema
during the time of the Evaluation Team’s visit in Georgia. CENN is currently in negotiations with
local TV channels to air the program on mainstream television.4
 The PSAs did not come up in
the focus group discussions. 
Primary school energy education program 
To respond to citizens’ demand for more information on energy efficiency and electricity safety 
issues, the CENN project implemented an educational program targeted at six schools in the
ESCA districts. The energy education was extremely successful and well-received by the
public, Telasi, and the government, particularly the materials and classes on energy efficiency.
The Energy Efficiency Book and Energy Efficiency Handbook describe energy saving practices 
and offer practical exercises on saving energy. To accompany the teaching materials, 12 
 
4
 Following completion of the evaluation, the CENN project team reported that the documentary has been aired on
two TV channels: Stereo 1 and Channel 202. 
20
teachers (two from each school) were trained from the six schools to deal with the pedagogical 
material. The classes were jointly taught by the project team and ESCA leaders, and key input
was provided by the stakeholders. Telasi in particular was very involved, and made 
presentations on the following topics: 
• Georgian power system and its components; 
• Telasi the company; 
• Organizations responsible for electricity cut-off; and 
• The impact of non-payment of bills. 
A total of 120 students between the ages of 13-18 participated in the program. To accompany 
the lessons, excursions were organized to Telasi and to the Gardabani thermal power plant. A 
painting contest was held entitled “Winter in our Homes.” The success of this school program 
can be measured by a number of factors. First, the First Deputy Minister Alexander Khetaguri 
from the Ministry of Energy of Georgia expressed great admiration for the school program. He 
is currently encouraging the Ministry of Education to mainstream the program for all 7th and 8th
graders across the country and is looking for donor funding to do this5
. Second, the sub￾contractor Eco-vision, in collaboration with CARE International, continues to use these 
textbooks and curriculum in the regions. Third, in the school visited by the evaluation team, the 
teachers expressed an interest in continuing the program with or without CENN’s support. They 
felt that they could utilize the existing materials for the current year’s students. 
2.3.2 Activities under Objective 2: Establishing performing ESCAs
Developing district-specific strategies
A central element of establishing ESCAs was to identify the most suitable neighborhood in each 
district to focus ESCAs activities. In each district, a number of neighborhoods were examined
and measured on a point system. Consideration was given to whether there was a need for 
such an organization in a particular neighborhood, and whether there were people there who 
could potentially take the ESCA idea forward. The point system was based on a number of
variables including: where transformers were located within a neighborhood; focusing on 
neighborhoods of 200-300 households; level of commercial losses; the number of cooperative
buildings within each district; good locations for ESCA/mobilization meetings; and the number of 
homes owing debts to Telasi. Based on these criteria, neighborhoods within each district were
chosen. Supplementary surveys and analysis were then carried in each district to identify 
socially active people and local issues around which mobilization could occur. The CENN team
did mention that working with six neighborhoods was difficult and next time, they would limit
activities to fewer neighborhoods. 
Community mobilization
Community mobilization was structured around intensive interaction with all households in the 
neighborhood, and interventions in the community to build up good-will and credibility. 
Community problems, which the project team addressed, included problems related to street￾lighting, debt restructuring, and often included projects unrelated to electricity. Through 
interactions with the community, potential community members were identified as leaders, and
 
5
 After the period of the evaluation, the project team met with the Ministry of Education to discuss integrating an 
energy component into the curriculum. The idea was subsequently approved by the Ministry, and the energy
materials are planned to be included in the 2006-2007 school year. 
21
22
approached by the project team to see if they would be interested in participating in an 
organization like the ESCA. The CENN project team made a conscious decision to build up 
“natural leaders” who evolved from within the community rather than working with existing 
organization and leaders of organizations. This was because established leaders already have 
links with different political and non-political bodies, which may make them less acceptable to 
the community. The project deliberately selected people who were active in the community on 
their own accord and were known to seek out opportunities to help people in their communities. 
Another important characteristic the project team focused on was individuals who had a “fighting 
spirit.” Overall, choosing natural leaders proved effective in providing the necessary energy to 
jumpstart the ESCAs. Inevitably, some ESCA leaders were stronger than others and were more 
effective. However, the community of ESCAs proved strong, and as one ESCA leader 
mentioned, they learned by working together. 
Creation of ESCAs 
By September 2004, all six ESCAs were established. A total of six training sessions were 
offered on specific energy subjects followed by training on how to develop an action and 
operational plan. At the end of the training, each ESCA produced their own action and 
operation plan with a breakdown in actions, timetable and responsible people, and possible 
partners to achieve their goals. The ESCAs also worked together to identify problems common 
across districts. These included: 
• Old debts 
• Flat rates despite the existence of meters 
• Electricity theft 
• Poor communication between Telasi and consumers 
• Seasonal tariffs 
• Problems related with the installation of new electric meters 
Over time, the ESCAs have had a number of successes. These include: 
• organizing condominium associations to solve illegal connections, electricity theft, and 
problems related to malfunctioning elevators; 
• mobilized neighborhoods to pressure municipalities to solve the lack of street-lighting; 
• negotiated with Telasi to post rights of electricity service consumers in the Telasi 
Business Center; 
• regular public consultation meetings are held by ESCAs where consumers can discuss 
their problems; and 
• debts were recalculated and paid and electricity service was resumed for individuals. 
Table 4 on the next page offers a more detailed list of ESCA activities. 
Table 4. Statistical Information on ESCA Activities 
DISTRICTS 
# Type of Activity Unit Varketili Avlabari Okrosubani Nutsubidze Didube Nadzaladevi Total 
1 Time period ESCAs have 
been working 
Months 10 10 10 10 10 10 10 
2 Number of households in the 
ESCAs neighborhood 
Households 200 300 150 300 200 180 1330 
3 Number of households 
ESCAs helped with debt 
Households 52 228 97 0 0 59 436 
4 Number of customers who 
received other types of 
consultations from ESCAs 
Customer 126 553 40 31 180 155 1085 
6 Number of mistakes found in 
Telasi debt calculations 
Mistakes 0 175 45 0 0 52 
7 Amount of incorrectly billed 
debt cancelled 
GEL 0 20,000 5,000 0 0 16,050 41,050 
8 Amount of debt restructured GEL 4,876 22,800 5,000 0 0 17,000 49,676 
9 Repair of sewerage system Building 5 0 0 0 0 3 8 
10 Social subsidies on 
communal services and 
electricity 
Households 0 65 7 0 0 0 72 
11 Repair of elevators Building 0 0 0 5 0 0 5 
12 Street 5 0 0 0 5 3 Outside lighting 13 
13 Entrance lighting Building 5 0 0 5 5 0 15 
14 Repair of damaged meters Meter 5 20 3 10 7 0 45 
15 Installation of new meters Meter 10 25 0 0 0 0 35 
16 Replacement of obsolete 
electric cables 
Street 0 5 0 0 3 0 8 
Creation of ESCA database 
An ESCA database has been established and resides in the ESCA central office. The database 
lists the different types of consultations that the ESCAs have offered. The information that is 
maintained includes: the district where the activity occurred; type of case (electricity or other); a 
case-number (abonent); name of person helped and their contact address; debt, if any; type of 
action provided. The focus group subcontractor, GORBI, used this data base to select 
participants for the focus groups that were conducted. The database was not without problems. 
In Avlabari district, many of the names (and addresses) proved useless since many of the 
houses had been sold or properties destroyed sue to a booming property market. In the second 
district, Varketili, GORBI found that many of the addresses visited were not aware of the ESCAs 
or their activities (7 out of 17). The problems are not necessarily related to how the database is 
managed. There is little that ESCAs can do to keep the database current in a transitional 
environment. In cases where people were not aware of ESCAs, this may reflect that the 
household member who interacted with the ESCA was not present, or that they are not familiar 
with the organization ESCA, but the ESCA leader by name. The latter suggests a greater need 
to brand ESCA. 
 
Organization of workshops for ESCAs and Tbilisi municipality
The Tbilisi Municipality was one of the many stakeholders involved in the monthly roundtables 
held by CENN. The monthly roundtables were important for introducing the ESCAs to these 
stakeholders, including the Tbilisi Municipality. Following theses roundtables, a number of 
problems were brought to the attention of the municipality. These included issues related to: 
street-lighting; power supply cut-offs due to accidents; water supply issues; and sewage 
problems. Members of the Municipality stated that CENN played an important role in bringing 
neighborhood issues to the attention of the municipality. They also stated that CENN’s activities 
had played an important role in educating people. The Evaluation Team noted that although the 
Municipality staff was aware of the ESCAs, their discussions centered on CENN rather than the 
ESCAs, which suggest that the brand identity is CENN rather than the ESCAs. The Municipality 
staff emphasized that ESCAs need to function as a group to be more effective. They also 
stated that without CENN the ESCAs would be weakened. ESCA leaders, too, mentioned that 
their interactions with the Municipality had been on a one-to-one basis and they had 
represented themselves as CENN members. All of these factors have weakened the ESCA 
brand identity, which needs to be developed for long term sustainability and for the period when 
the ESCAs have been weaned off CENN support. The Municipality staff continued to see an 
important role for the ESCAs in a number of areas outside electricity, including heating. They 
also emphasized the importance of lobbying for ESCAs to be effective in getting their issues on 
the table. 
Development and transfer of recommendations to the authorities 
Developing recommendations and proposals for greater efficiency of the electricity sector is an 
important task of the ESCAs. In total, 29 proposals were put forward by the ESCAs to these 
bodies. In addition, ESCAs regularly put forward recommendations in the stakeholder 
meetings. Where ESCAs have had relatively more success has been at the Tbilisi Municipality 
and Telasi, where concrete actions have been taken such as the repairing and reinstalling the 
street lights. They have had limited success at GNERC. The ESCAs have also been more 
successful on resolving individual customer problems rather than having an influence on 
system-wide change, either in legislation or processes. 
2.3.3 Activities under Objective 3: Responsible and Accountable Energy Entities 
Organization of experts’ meetings 
A central element of the project was to organize regular meeting with energy experts for the
benefit of the project staff and the ESCAs. These meetings kept the project team and ESCAs
abreast of key issues in the sector and led to specific pieces of research being produced. The 
objective was also to use the research to cross-check the situation on the ground. The following 
areas were of specific interest to CENN: procedures of licensing; the legal framework; analysis 
of privatization agreement; legal status of condominiums; opportunity for public participation in
governance; etc. Elements of the research were incorporated into the CENN publications. 
Rules and regulations for sustainable development of the energy sector 
ESCAs need to be more effective in ensuring that rules and regulations are implemented that 
contribute to sustainability in the energy sector. Although the ESCAs have been lobbying and
putting grassroots pressure on the relevant stakeholders, as yet they have not been successful 
in pushing through systematic reform. 
2.4 Evaluation Findings 
This section addresses the overall evaluation findings for the CENN Project, including
effectiveness, efficiency, program management, and barriers faced by the project. Findings 
relating to support to USAID IRs in included in Section 4. 
2.4.1 Effectiveness of CENN’s project 
Objective 1: Creating a more aware and responsible consumer
The expected output of Objective 1 was “changed public behavior and increased public 
awareness and participation in 6 pilot districts in Tbilisi”. The output indicators are presented in
the Table below, along with the evaluation team’s findings on whether the output was achieved.
As we have noted elsewhere, focusing solely on these objectives would underestimate the
actual achievements of the project. 
Table 5. Output indicators and achievements for Objective 1 
Output Indicator Achieved or Not? 
Debt payments increases In Avlabari district, for example, with the ESCA’s help, 
1500-2000 GEL are paid to Telasi every month, 
approximately 5% of Avlabari district’s total payment. 
Number of non-payment cases decreases Increased payment rates automatically decrease the 
number of non-payment cases
Amount of illegal consumption ESCAs were active in identifying local theft cases in their 
neighborhoods
Change in attitude as per public opinion surveys Difficult to say based on surveys at hand 
Participation in public meetings -ESCAs introduced amendments in the electricity
related legislation for public discussion and review
-ESCA members regularly attended public meetings 
organized GNERC 
Public pressure and lobbying at different levels Difficult to say if it had a significant impact 
Quality and quantity of public input in decision-making Difficult to say if it had a significant impact 
25
How effective was the CENN project in creating a more aware and responsible consumer? As
noted at the outset, this objective is an ambitious one. Moreover, underlying CENN’s indicator 
is an assumption that a more aware consumer automatically changes his/or her behavior 
regarding payments and theft, which may not necessarily be the case. 
Two surveys undertaken by BCG (March 2004 and 2005) for Liberty and PA Consulting
(June/July 2005) for USAID can offer some insight into consumers’ awareness and behavior 
about the electricity sector towards the end of the project period. However, the changes, or lack 
of change, cannot be attributed to the CENN project directly. The numerous changes that were
happening in the sector, particularly the rapid improvement in service delivery over this period
due to investments made in the sector by the government, are more likely to be significant 
influences on consumer behavior. In the BCG surveys there were few questions that were the 
same in the two surveys, limiting trend analysis.6
 The PA survey was of citizens and enterprises 
in all regions of Georgia, including Tbilisi (the CENN project area), and its objective was to 
ascertain reliability of service, and attitude, belief, and knowledge about the energy sector. The 
survey reveals the following about electricity consumers in Tbilisi:
• 30.6% of Tbilisi citizens still do not know the name of their local distribution company. 
• Compared to the previous year, 37.8% of citizens felt electricity supply was much better; 
39.4% felt it was a little better; 37.2% of enterprises felt electricity was much better, and 
28.4% felt it was a little better. 
• Tbilisi citizens had an awareness of the Ministry of Energy, and only half that were
surveyed were aware of GNERC, GWEM and GSE. Only 17% knew of the existence of
the Energy Public Advocate. Of those who knew these institutions, very few knew what
they did. 
• Only 11.2% of those surveyed in Tbilisi knew of the ESCAs, and of those 8.3% admitted 
to being friends or relatives of ESCA members. 
• 53.4% and 48.6% of citizens and enterprises in Tbilisi, respectively, were felt there was
corruption in the electricity sector, and a significant number saw the problem as being in 
the MEF. Nevertheless, 43% of citizen and 56.5% of enterprises felt corruption was
lower than the year before. In terms of solutions, they also saw the corrupt MEF as
being the solution to the problem. 
(PA Consulting Survey 2005) 
The survey sample included districts other than the six districts of the CENN project. Hence, 
these cannot be directly correlated to CENN and ESCA activities. Nevertheless, the results do
indicate that although people are feeling more positive about the energy sector, they still seem 
to lack the most basic information about the sector, and there is still a need for public 
information. Although the percentage of people who knew about the ESCAs was small, it is 
respectable given the geographical scope of the ESCAs’ work. 
It is difficult for the evaluation team to determine how effective the ESCAs were in changing
people’s behavior. The indicators, although premised on a strong assumption, do not suggest
so. It is perhaps more appropriate to say that those customers who have interacted with the
ESCAs and have successfully been helped have again became more responsible customers,
and local monitoring by the ESCA leaders did result in electricity theft being identified.
Where ESCAs have been successful is in their ability to solve consumers’ real problems; they 
have generated good will and eased tensions and suffering within these communities. 
 
6
 See Section 3 on the Evaluation of the Liberty Program for more details on this. 
26
Nevertheless, in terms of easing tensions, a more significant factor has been the better supply 
of electricity. 
These are some of the comments about the state of electricity service before the ESCAs were
established: 
• Consumers felt less powerless. Focus group participants expressed how they frequently
visited key stakeholders, particularly Telasi, but were not able to get answers to their
problems, both because the staff was unresponsive and because there were frequent
changes in the staff. 
• Consumers felt that their rights were violated by Telasi. One focus group participant 
stated “…Everyone has rights and responsibilities, whereas Telasi only accentuates the 
responsibilities of the customer…” 
ESCAs have been able to play an important intermediary role between customers and the 
different stakeholders in the sector. Some of the comments from the focus group include: 
“I had no electricity for 5 years because of arrears and I could not pay the enormous
debt I was asked to cover. I asked for debt restructure but the only answer I got was,
‘We do not care about your problems.’ When I learned about ESCA, I called their office
and was told to leave my data at the end of December. They settled everything and 
never asked to be paid for the service. Now I have already paid part of my debt.” -
Unemployed women from Varketili, 71 
“As a neutral organization this association is more trusted than other organizations. 
Moreover, it has never refused to help people. The Association helps people who are
unable on their own to protect their rights in dealing with TELASI.” -Woman from
Avlabari, NGO Member, 47 
In any real sense ESCAs are the only body that represents customers’ interest in the sector. 
Although there is a Public Advocate at GNERC whose responsibility it is to represent the 
interest of consumers, very few people have actually heard of it. It is also likely that individual
consumers would have a harder time dealing with bureaucracy involved in accessing the Public 
Advocate than a body like the ESCAs, who function as a collective and have knowledge of the
system
Objective 2: Establishing performing ESCAs 
The expected output for Objective 2 was “…established and functioning ESCAs.” A number of
specific goals were also set for the ESCAs including: 
• Building public education and responsibility; 
• Monitoring decisions and performance in the energy sector, and sharing the information 
with consumers (watchdog system); 
• Mediating disputes between private consumers and electricity distributors; 
• Lobbying for reforms that lead to better and more equitable electricity provision for 
consumers; and 
• Acting at grass root level as consumers’ right protection units (advocacy). 
Table 6 below assesses the achievement of the expected output during the project period. 
27
Table 6. Output indicators and achievements for Objective 2 
Output Indicator Achieved or Not? 
Number of organized meeting with concerned parties -On average 3 monthly meetings were held with GNERC 
-20 meetings were held with Telasi every month 
-Multi-stakeholder roundtables were held every month 
which included ESCAs 
-ESCAs held regular public meetings at their offices 
Number of public requests and visits to ESCAs -Approximately 300 public requests are made per month 
-On average 3 customers come in to the ESCA offices 
daily
-There has been a demand for ESCAs to expand their 
services 
Number of disputes resolved at the ESCAs’ level -1085 people were provided with consultations 
-436 families have been assisted with debt problems 
-67 bills were found with incorrect calculations
-41,050 GEL were cancelled; 49,676 GEL were 
restructured 
Number of proposals/recommendation presented -At the roundtables, 29 recommendations and proposal 
were presented by ESCAS to different parties
-Regular suggestions and recommendations were
presented to Telasi 
Number of recommendations developed by ESCAs 
and utilized by the State 
-5 recommendations given by the ESCAs were used by
Telasi 
-Based on the lobbying by the ESCAs, 13 streets were 
provided with street lighting 
Overall, the project has successfully met this objective. The ESCAs are functioning bodies and 
are accepted as such by key stakeholders in the energy sector. Those customers who have
had interactions with them also believe that the ESCAs are effective intermediaries who work on
behalf of consumers. ESCAs clearly have had an important role in delivering public education
on consumer rights and other electricity sector information, have been successful in mediating 
disputes between private consumers and electricity distribution companies, and have played an 
advocacy role. Perhaps where they have not been as successful is lobbying for reform. To
qualify, they have had some success at Telasi and the municipality level in resolving specific 
customer concerns and resolving street-lighting; thirteen streets in these six districts have been
provided with street lighting. They have had less success in changing policy or legislation at
GNERC. The ESCAs have also not played a significant role in monitoring the performance of
the electricity sector and sharing that information with consumers. However, ESCAs may not be
the most appropriate body to undertake such a task as this may require a body that has more 
technical skills and authority to undertake this more complex task. The ESCAs have, however, 
been successful in moving into offering intermediation in areas other than electricity. 
The following are some key observations on the establishment and functioning of the ESCAs: 
• There was a general consensus from all parties interviewed that ESCAs played a 
successful mediating role. The ESCAs were able to channel anger and distrust for more 
constructive purposes and better dialogue. People were organizing before, but the 
ESCAs provided a focal point for registering complaints and mechanisms to
address/resolve them. 
• CENN’s natural leadership approach worked through extensive mobilizing efforts. This 
was successful in a highly politicized context where there was little public trust in existing 
organizations. By allowing natural community leaders to come forward and be involved
in the program, each of the leaders was able bring to the program a community network 
28
and established relationships. Recruitment of “natural” leaders was one of the key 
elements in the success of CENN’s activities. 
• Providing minimal compensation for the ESCA leaders meant that their commitment was 
real and not motivated by financial compensation. The ESCA leaders were already 
involved in their communities and the CENN program provided the tools and skills that 
they needed to be more effective. 
• There was great flexibility on how each of the ESCAs was set up. CENN let these
organizations evolve organically. No standardized approach was followed and 
mobilizers were encouraged to think independently and respond to the situation on the
ground. Leaders were based in their communities and were talking with residents on a
daily basis to help resolve problems. ESCA offices were established in locations that
made sense to each leader – in a school, apartment building, community building at little
or no cost. 
• In a transitional electricity sector, the ESCAs played a key role in helping the community 
realize that the problems they were facing were their own and they could have a role in 
solving them. Reliance on the state for solving problems results in community needs not
being addressed. Residents came to realize that they could affect changes in their
communities. 
• Mobilization was around a concrete issue in one sector. This helped the mobilization 
process and provided a focus for ESCA activities. Support for the ESCAs also built up 
after they were able to achieve concrete results. By resolving small problems effectively 
and addressing community concerns, they built up credibility in the community are their
representatives. While electricity/energy sector concerns were their organizing focus,
ESCAs dealt with other community problems as well. 
• The ESCA’s advantage is that it is seen as a non-partisan actor, and because of their 
access to key stakeholders, has better direct access to resolve problems.
• Telasi recognized the value of ESCAs. This can be seen by the following factors: 
o When ESCAs bring a problem it is given more weight since Telasi has come to 
understand that the ESCA representatives have researched the customer’s
problem and come with the necessary documentation to find a resolution. 
o Telasi would take ESCAs with them to explain key issues to consumers. This 
built up Telasi’s credibility with consumers as well. 
o ESCAs played an important monitoring role in their neighborhood by cross￾checking incidents of theft and fraud for Telasi. This signified a significant
working relationship between the two. 
o Telasi, too, has undertaken greater community outreach, taking lessons from
their interactions with the ESCAs and local communities. 
o ESCAs have helped increase collections for Telasi by restructuring debt,
explaining to customers how bills are calculated, and verifying whether an 
incurred debt is correctly calculated and if the customer is liable to pay. 
• Knowledge of the ESCAs tended to spread through word of mouth and through the 
publicity they received in the media. One indicator of the demand for such services is to 
see the geographical location of ESCA clients. Besides those clients that they serve
from within their districts, ESCAs have been helping consumers from other districts. The
map below graphically demonstrates the scope of the ESCAs activities beyond the six 
districts in which the ESCAs were formed. 
29
Map Legend
-Red dots indicate the neighborhoods within 6 initial districts of Tbilisi where ESCAs initiated their 
services (Avlabari, Nadzaladevi, Varketili, Oqrosubani, Nutsubidze, Didube). The black circles in these 
areas mark the reach of ESCAs' services provided. 
-The green circles indicate the seven districts where ESCAs also provided services. These districts 
include: Vake, Digomi, Didi Digomi, Saburtalo, Gldani, Chugureti, Lotkini 
The ESCAs have evolved in their organizational structure in a way that may have implications 
for its future effectiveness. In June 2005, ESCA developed a charter and registered as an 
independent non-profit association. In the latter part of 2005 (and outside the project period),
the six ESCAs were consolidated into one association with the intention of serving all of Tbilisi.
The ESCAs are now housed in one office and have a “hotline” to serve all citizens of Tbilisi. 
CENN has been working with the ESCAs to develop organizational structures, laying out
internal procedures, membership fee, payment structure for different types of members, 
establishing a new accounting system etc. 
The real concern is that the expansion of the ESCA from a grassroots body to a national 
association with the mandate to resolve all types of consumer problems beyond electricity may 
be too rapid. The ESCAs’ success seems to have been based on the fact that they were
grassroots bodies with links to the local communities and the local stakeholders. They built up
credibility because of their successes at the local community level. It is unclear whether the 
ESCAs will be able to offer that same kind of service now that the ESCA leaders function as 
members of a national association. A number of issues arise: 
i) Will ESCAs be able to have the same presence and same level of commitment to their
local districts? 
ii) Will their expansion into new areas (sewage, heating etc.) be as successful given that 
they have not had the same level of interactions with local stakeholder in these different
areas? 
30
iii) Will ESCAs be able to offer the same level of intervention in other Tbilisi districts where 
they do not know the local stake-holders or where they are not part of the local 
community? 
There are also concerns about whether ESCAs will need to adjust how they function in a more
decentralized local government setting that is currently being proposed and implemented in
Georgia. A singular body in a time of greater decentralization may not be the most effective
institutional match. What may be more appropriate is a number of bodies that serve different
purposes. This includes grassroots bodies like ESCAs that interface with local utility 
stakeholder and consumers to resolve consumer problems on specific issues. A representative
body like the ESCA Association could function at the national level with the task of lobbying and 
monitoring government. There may also be a need for condominium associations that organize 
for their own communities and interface with a national ESCA to resolve problems. Different 
types of organizations may be required to ensure an effective governance structure in the utility
sectors. Currently, the amalgamation of the ESCAs into the ESCA Association without 
adequate consideration of all these roles suggests that the ESCA Association should be 
responsible for all of these tasks. This is not possible, nor is it effective. 
Objective 3: Responsible and accountable energy entities 
The third objective of the project was establishing more “responsible and accountable energy 
entities.” The secondary aim here was to contribute to easing tensions in the sector. 
The project indicators, and an assessment of progress towards achievement, are given below in 
Table 7. 
Table 7. Output indicators and achievements for Objective 3 
Output Indicator Achieved or Not? 
Number of disputes resolved at the level of GNERC Resolved one dispute. ESCAs worked with ex￾ombudsman at GNERC/public advocate to resolve a case
in Nadzaladevi district where 50 families were billed 
incorrectly by Telasi 
Number of roundtables and public consultations 
organized by MEF
Members of MEF participated in the multi-stakeholder 
roundtable meetings organized by CENN. In total 9 
meetings were held. 
Number of public meetings held by the Energy
Committee of Parliament 
Energy Committee of Parliament was abolished after 
Rose Revolution 
Number of proposals submitted by ESCAs on
legislative initiative considered by Energy Committee 
of Parliament 
-See Above￾Improved electricity service in six districts ESCAs helped restructure debt, through which electricity
services were improved for particular consumers. Helped 
resolve problems of theft that would have had an effect on 
utility supply, although marginal given the scale involved. 
Functioning ESCAs as emulator of condominium 
management unit 
ESCAs helped with the formation of three condominium 
associations in Nutsubidze district. 
The ESCAs’ impact on different entities has varied depending on the stakeholders. There is no
doubt that through outreach activities and roundtables the ESCAs have been established and
are seen as credible intermediaries. Their greatest impact has been on Telasi. ESCA leaders 
have had the greatest opportunity to interact with Telasi to solve specific consumer problems, 
particularly in restructuring debt and in helping with the theft and fraud-related issues. Most of
31
the ESCA recommendations have targeted Telasi and the Tbilisi municipalities. CENN’s 
chosen indicators do not account for this and do not adequately reflect the responsiveness of
Telasi and the municipalities to ESCA demands. 
ESCAs have not been as successful with GNERC. Besides the help they received from the
previous ombudsman in solving the Nadzaladevi case, the ESCAs have generated little 
response from GNERC. ESCA leaders now regularly attend public hearings and participate but
have had limited impact. Before the recent attenuation of GNERC, the ESCAs were part of a 
GNERC working group that was looking at internal networks in multi-family residential buildings; 
this group has now been disbanded. 
One reason for the limited impact ESCAs have had at this level may be the narrow view that 
GNERC staff members hold of public participation in the regulatory process. For GNERC, the
role of NGOs and bodies like ESCAs is of public education. GNERC staff expressed the view
that public participation was not significant for purposes of the regulatory process itself. Clearly,
there is a limited commitment within GNERC regarding the role of public participation in the 
regulatory process and its centrality to better energy sector governance. This lack of
understanding would contribute to the limited impact ESCAs had, and will have in the future, on
regulation and regulatory reform. 
2.4.2 Efficiency of CENN Projects 
Efficiency here refers to how resources, both human and financial, have been planned and
expended. The following observations can be made from the evaluation: 
• CENN efficiently used the resources provided, paying careful attention to allocation
between various activities. 
• Tasks were efficiently allocated among partners. Discrete tasks were given to each 
partner, which evolved from complying with USAID’s operational requirements. This
proved effective, allowing each partner to have ownership over their project and 
execute it independently. 
• For sustainability, a key objective of CENN’s project was to ensure that the newly
formed ESCAs had limited dependence on financing from CENN. Hence, ESCAs
incurred limited expenses for accommodation and salaries. Accommodation costs 
were limited by relying on the availability of community space, unless absolutely 
necessary and no salaries were paid to ESCA leaders. However, a grant scheme
was established to offer each ESCAs financial help on specific items that they
requested. The grants became regular monthly payments and were give to all the
ESCAs on a regular basis for their current expenditures. Many ESCA leaders saw 
this in lieu of a salary, which contributed to the view that they were CENN 
employees. 
• The school textbooks continue to be used both by the schools in the initial project as 
well as by CARE International in the regions. It is possible that these textbooks may 
be used again if the MEF is able to convince the Ministry of Education to include an
energy component in the national curriculum.
2.4.3 Program Management and Relations with External Partners 
As previously discussed, CENN worked closely with partners in implementing the project. 
Partnerships of note include: 
32
• USAID operational procedures helped clarify roles for different partners and helped 
CENN set up elements of the administrative and MIS systems which previously did 
not exist. CENN used this experience to set up the administrative and financial 
infrastructure for the ESCA Association as well. Save the Children helped CENN 
undertake these tasks. 
• CENN was very active in developing relationships with all the key stakeholders in the 
sector. They worked hard at establishing relationships with all the stakeholders in
the sector including GNERC, MEF, the consumers, and Telasi. They were also very 
active in ensuring that these stakeholders were aware of their activities. 
• Telasi and CENN have built up a strong working relationship. Telasi helped CENN
identify appropriate neighborhoods for establishing the ESCAs; CENN and partners 
involved Telasi in the schools program and worked together to produced the
materials and teach the program. 
• Despite CENN and ESCAs extensive interactions with stakeholders, including
GNERC, CENN was not aware of the meeting held at GNERC on the communal 
meters on July and August of 2005.
• CENN, with the ESCAs, worked closely with the municipalities to resolve
neighborhood wide issues, specifically street lighting and other community wide
issues. 
2.4.4 Barriers Faced by the Project 
Sectoral Barriers that are common to both projects reviewed are included in Section 4. Barriers
going forward for the ESCA include:
1. There are questions about whether the new structure accompanying the ESCA 
Association will affect their effectiveness in the future. Currently, the ESCAs are 
carrying a multiple of tasks that should be carried out by different bodies or arms of 
the ESCAs. This lack of clarity and alignment of functions could prove to be a barrier 
in the future. There is also concern that this new structure may undermine the very 
features—grassroots mobilization and local links—that have made them effective in 
the past. 
2. As part of the new structure of the ESCA Association, and to ensure its long term 
sustainability, there is now a membership fee for people using the ESCA services; 
initial help is offered for free. Although the fee is minimal (3 GEL for six months, 
approximately US$1.50), there are questions about whether people will be willing to
pay and how this will affect the poor and disadvantaged who are the key clientele of
the ESCAs. This in turn could affect the sustainability of the ESCAs. In the focus
group, people indicated a willingness to pay but offered various suggestions about
how to encourage payment. They offered the following suggestions: people would 
be more willing to pay if there was more publicity about ESCA activities; there would 
be a greater willingness to pay if ESCAs offered help in all services and not just 
electricity; and paying for each delivered service would be better than a flat
membership fee. 
33
3.0 LIBERTY PROGRAM EVALUATION 
3.1 Liberty Institute Project Partners 
Liberty Institute formed a consortium of NGOs to implement a project to raise the awareness of
journalists, politicians, and the general public on energy sector issues, and promote
transparency and accountability in the energy sector. The NGOs in Liberty’s proposal included: 
Liberty Institute, International Society for Fair Elections and Democracy (ISFED), Radio Green 
Wave and Research and Development Association (RDA). 
While implementing the project, Liberty Institute experienced some changes in its partners.
ISFED was actually composed of two organizations – Fair Elections Foundation (FEF) and
ISFED. FEF was involved in the project until December 2004, and was primarily responsible for 
regional work. FEF had representatives in Kutaisi, Rustavi, Akhaltsikhe, Poti and Gori. In
January 2005, the regional coordinator from FEF worked with Liberty to transfer information and 
contacts in regions. In February 2005, Liberty Institute hired new regional coordinators and
renewed regional work in Kutaisi, Akhaltsikhe and Gori. In Akhaltsikhe, FEF's representatives
were rehired; in Gori and Kutaisi, Liberty Institute used its own representatives. In Rustavi and
Poti, there were no Liberty representatives. In March 2005, a new region, Batumi, was added.
Besides regional work, ISFED was providing mass media monitoring reports until December 
2004. Since January 2005, mass media monitoring was conducted by the same group of
people under a direct contract with Liberty Institute. 
Research and Development Association was aided by BCG Research to complete the analytical
tasks. However, BCG didn't participate in the project as a formal partner. At the beginning of 
the project, it became clear that RDA did not have enough human resources to conduct polling
in six cities of Georgia. An MOU between Liberty Institute and BCG was signed in which it was
stated that BCG would provide the resources necessary to conduct all of the research in the 
project and guarantee the high quality of research. RDA representatives were involved in 
research work, but the research work was primarily conducted by BCG staff. 
Liberty Institute has local offices or representatives within other NGOs in all of the locations for
the project activities, and Radio Green Wave had partner radio stations in the following cities:
Akhaltsikhe – Green Wave, Meskheti FM 107.7; Kutaisi – Dzveli Kalaki FM 107.9; Zugdidi –
Atinati FM 105.9; Poti – Poti + FM 100.5; Lagodekhi – Hereti FM 102.8. 
In addition to changes in project partners, Liberty Institute experienced changes in project 
management over the 18 month period of implementation. The first Project Manager, Mr. David
Kakabadze, was in place from the project’s inception until June 2004. Mr. George Bakradze 
was Project Manager from July to December 2004, and Mr. David Lezhava came on board in 
January 2005 and continued to the completion of the project in June 2005. Several project
staffs were on board for the entire period, including the Communications and Outreach Officer, 
Ms. Veronica Chkadua, and the head of Liberty Institute, Mr. Levan Ramishvili. 
3.2 Liberty Program Objectives and Activities 
3.2.1 Anticipated Outcomes/Results 
The stated objectives of Liberty’s program were as follows: 
34
“The goal of the program is to foster transparency of the energy sector and 
promote good governance, accountability of both industry and policymakers to
customers, as well as "corporate citizenship" of gas and electricity companies.
The program aims to bring increased transparency to governmental processes
and actions, though strengthening legal and official mechanisms of accountability 
and more active involvement of civil society in the decision-making processes.
The program will strengthen media's capacity to cover energy reform issues;
public outreach campaign will raise citizens' awareness about challenges to be
met and through increased understanding will build public confidence into reform 
process; and finally the program will set up mechanism of public accountability of
politicians and parties for their policies and activities in energy sector through 
catalyzing political party’s positions and debates on energy related issues.”
(Excerpt from Liberty Implementation Plan)
While Liberty’s proposal identified desired program outcomes and outputs, the proposal did not 
clearly define specific indicators that would be used to measure outputs. Prior to the evaluation, 
the team prepared the following table showing program objectives/outcomes, project outputs, 
output indicators and possible data sources. 
Table 8. Outcomes, Outputs, and Output indicators for the Liberty Project 
Outcome/Objective Outputs Output Indicator Source of Data
Mobilize civil society around energy
reforms and increase public 
participation in the energy sector 
Change in public 
attitude per surveys 
March 2004 and
March 2005 
surveys 
Increase public sector awareness in 
energy sector reforms: 
* Improved understanding of the 
market approach 
* Propose policy alternatives for 
enhanced public debate 
Increase public awareness 
(Task 1) 
Reduced public cynicism 
(Task 1) Change in public 
understanding
Increase in public 
participation in energy
forums 
March 2004 and
2005 surveys 
GNERC/MEF and 
project records
More transparency in the formulation 
and implementation of energy sector 
reforms 
Reduced corruption in the 
sector (Task 2)
Change in public 
perception 
March 2004 and
March 2005 
surveys 
New framework for dialogue and 
increased understanding between
stakeholders in the energy sector 
Media monitoring 
Parliamentary 
energy committee 
Articulated party positions and 
enhanced debate; greater 
understanding of policymakers on 
energy reform issues 
Greater accountability of 
politicians and political 
parties in energy sector 
issues (Task 3) 
Increased political 
debate on energy sector 
issues 
Political party
platforms 
Increased media coverage; enhanced
journalist capacity to cover energy
issues 
Increased media capacity
to cover energy issues 
Quantity and quality of 
media coverage of 
energy issues increased 
Media monitoring 
3.2.2 Planned Activities of the Program
Liberty Institute proposed four areas (Tasks) in which to work to accomplish the overall program 
objectives. Shown in Table 9 below are the planned activities of the Liberty Institute program as
described in their proposal, along with the monitoring and evaluation criteria which were
proposed to measure the impact/effectiveness of the project, and activity indicators. The 
proposed M&E criteria were included in the Liberty’s proposal, while the activity indicators were
developed by the evaluation team. 
35
Table 9. Tasks, M&E Criteria, and Activity Indicators 
Task Areas Proposed M&E Criteria Activity
Indicators
Task 1. Raising public 
awareness, raising public 
confidence 
• Baseline study 
• Town Hall 
meetings/ Energy
Round Tables 
• Newsletter 
• Information 
sheets 
• Web site 
• Alliance of the entities will serve as a brilliant means to 
implement advocacy campaigns for issues of significant public
interest. 
• Round tables will stimulate discussion on issues. Active policy
makers will be more accountable to consumers. 
• 10 Town Hall meetings will involve people from different regions
of Georgia and from Tbilisi in the reform process. 
• Website will serve as permanent source of information for
additional public involvement initiatives after completion of the 
project. 
• Newsletters will provide information for interested parties about 
ongoing trends in energy issues. 
# Town Hall 
meetings 
# Round tables
held 
# newsletters 
produced 
Current Web 
site 
# alliances for 
energy issues 
Task 2. Anti-corruption 
• Hotline 
• Monitoring 
• Support for policy-making, rule-making and legislative drafting
and lobbying. 
• Monitoring and FOI audit promotes good governance and set 
the principle of Rule of Law.
• Project will identify necessary legal documents and amendments
to create proper environment for reforms. 
# FOI requests 
# policy papers
and advocacy
Task 3. Accountability of 
political parties
• Vote Smart 
• Political 
awareness test
• Civic ratings 
• Vote Smart will offer information to voters that will enable them
to judge the skills and positions of individual politicians. We will
monitor how many citizens have accessed Vote Smart
information. 
• By means of Political Awareness Tests the volume of
meaningful feedback from candidates will be evaluated; the
number of people filling tests and polls as well as the
consistency of party positions on energy and corruption issues
will be evaluated. Where no feedback was solicited research of
the relevant reasons will be carried out. 
# citizens 
accessing VS 
info 
# people 
responding to 
tests and polls
Task 4. Increasing media 
capacity
• Press Club 
• Radio Programs 
• Reporters’ 
Resource Center 
• Training and 
awards program
for journalists 
• 18 Press Clubs will be conducted, which will encourage media
representatives to work in energy-sector. 
• Results of media monitoring will accumulate necessary
information disseminated in media. Monitoring will expose
deficiencies in media coverage and show the direction for better 
journalism. Media monitoring will trace the quantity and quality of
press and mass media coverage of related issues. 
• Reporters' Resource Centre will enable interested persons to get
necessary information and keep pace with ongoing development
in sector. 
# Press Clubs 
Media 
monitoring 
# of times 
resources were
accessed 
# trainings 
Journalist 
awards 
program held 
36
3.3 Activities Completed by Liberty
Table 10 gives a summary of the activities that were planned and conducted by the Liberty
Institute under the programs. Each of these is discussed in more detail in this section.
Table 10. Tasks, Activities, and Achievements 
Task Activity Planned Conducted 
1 General Public Survey 2 surveys of 1200 Households 2 surveys of 1200 Households
3 Civic Rating 200 100
3 Political Awareness Test 500 200 
3 Survey of Energy Experts 0 405 (formed basis for database) 
3 Focus Groups 3 3
1 Web Site Maintenance 18 months 18 months 
4 Media Monitoring 17 months 17 months 
4 Press Club 18 sessions 18 sessions 
4 Radio Programs 72 (weekly programs) 73 
1 Advertisement Production Yes Yes
1 Social Advertisement (public service announcements) 16 18 
1 Promotional Materials 2500 Approximately 900, including pens, 
t-shirts and notebooks 
2 Hotlines 5 regions * 16 months = 80 months 
operation 
65 months (in regions) + 15 
months (in Tbilisi) = 80 months
1 Newsletter 6 issues 7 issues 
1 Information Sheets Yes 1500 (user guides) 
2 Support for Policy Making 16 months 4 months 
2 Support Legislative Drafting 16 months 4 months 
4 Awards Program for Journalists Yes Yes 
1 Town Hall Meetings 10 9 
* Note: The evaluation team verified the completion of the tasks as reported by the Liberty 
project team through interviews and document review. In this section, we will note areas where
Liberty’s work was particularly successful, where questions remain about the completed work,
or where the work could have been more effective. 
Task Area 1: Raising public awareness, raising public confidence 
Town hall meetings/energy round tables 
A total of nine town hall meetings were held in the regions of Georgia. The objective of the town 
hall meetings was to “create a coalition of community-based organizations and active citizens,
NGOs, media and energy stakeholders in order to foster the process of cooperation and to bring
coalitions to constructive dialogue” (project final report). According to Liberty staff, the most
active and well-attended town hall meetings were held in Kutaisi and Alkhaltsikhe following the 
introduction of communal meters in both cities. Citizens were dissatisfied with communal
meters and were not well informed prior to their installation. Both the Ministry of Energy and
UEDC participated in the meetings, and were able to present their views and listened to
consumer complaints. 
Findings from the focus groups in Akhaltsikhe and Kutaisi provided additional insight into the
tensions that exist in the regions regarding power sector issues. Focus group participants were
37
quite outspoken in their dissatisfaction with information provided by UEDC and the way that
customers are treated. Although collections in the regional areas of Georgia have increased 
from 20% to 80% in the past year customer service has not improved—customers are upset
that communal meters have been installed without their knowledge and agreement. Focus
group participants also expressed their frustration with the ability of UEDC customer service 
representatives to solve problems, stating that only management was authorized to resolve any 
problems. Typical of comments from the focus groups are the following:
“We have to pay 60 GEL each month according to the meter’s readings. Even if we pay 
in full, but our neighbors do not, then the power is cut for everyone. And with each cut in
the supplied energy, our debt continues to grow as the cost os the energy is evenly 
divided among all customers. This system of payment has pitted one neighbor against 
another.” An employed woman, 50, Akhaltsikhe
“Service center does not provide adequate information, customers are not satisfied with 
the quality of received information. There is an information deficit”. Female student, 21, 
Kutaisi 
“We are only given two reasons for cuts: poor payment and if we object, then breakage.
It’s no use asking for information”, Woman, 31, Kutaisi 
In this environment of distrust and inadequate information, the town hall meetings organized by 
Liberty brought the parties together and provided a forum for them to voice their complaints.
The Liberty project ended shortly after the widespread installation of communal meters, but was 
able to address the immediate concerns of residents in both Kutaisi and Akhaltsikhe through the 
town hall meetings, and ease tensions in the short-run. However, there is still a strong need for 
an intermediary in the regions, particularly in regards to billing and collections issues related to
communal meters. While UEDC is planning to install individual meters in the future, there exists 
today a distrust that needs to be addressed through a program of information and assistance to
residents so that they can understand their electricity bills. 
Baseline study and follow-up survey 
A baseline survey was conducted in March 2004, and a second survey was completed in March 
2005. Both surveys included 1200 households and were conducted in Tbilisi and six regional 
cities (Gori, Rustavi, Poti, Zugdidi, Akhaltsikhe, Kutaisi). A comparison of the two
questionnaires and the survey results available in English shows that there were some similar 
questions, but that the two surveys are not identical and have somewhat different approaches. 
The first survey was broad and included many energy sector issues, not only electricity. The 
second survey was a joint effort between CORE (supporting the public outreach program of the
MEF) and Liberty. While some survey questions are similar, the survey results can not be used
to make any definitive statements about the impacts of Liberty’s program. The surveys were
intended to be the primary output indicator. In reviewing the draft evaluation report, the Liberty 
team commented that nearly all of the questions in the March 2005 survey were the same as 
the March 2004 survey, however, the evaluation team was unable to verify this from the English
version of the survey questions made available. While the surveys could have provided
important information to inform the evaluation, we were unable to compare them. 
Liberty produced a summary of the two surveys (available in Georgian), which was published in
one of the project newsletters and distributed to energy stakeholders through the regional 
Liberty offices. It is not possible to directly attribute any changes in answers to questions 
38
relating to corruption or public perception of the energy sector to Liberty’s activities; rather, any 
changes are more likely due to a combination of Liberty activities and other developments in the
energy sector. 
Newsletters 
Liberty produced seven issues devoted to energy sector concerns. It was not possible for the 
evaluation team to comment on the quality or content of these, since they were only available in 
Georgian. However, the distribution channel may not have been the most effective – the 
newsletter was included in Liberty’s monthly magazine and distributed through those channels, 
and to energy sector stakeholders. While the newsletters likely provided good coverage of 
development in the sector, their effectiveness is not possible to measure as a stand-alone 
activity. 
Web site 
The Liberty Institute web site was maintained for the whole period, and according to Liberty 
staff, the project newsletters and survey/focus group research results were available on the site.
A search of the English version of the web site could not verify this, possibly because the
materials are only available in Georgian. The audience for project information on the web site is 
primarily external or one that is already aware and informed on energy issues. Integrating web
site content into the journalist training could have enhanced its effectiveness and use. In the
meeting conducted with journalists who had participated in the media training, journalists did not
seem to be aware of the energy sector content on Liberty’s web site, or how they could use the 
material to inform and improve their reporting. They were especially interested in the database 
of energy experts, which they felt could be a valuable resource for research and understanding
the issues involved in energy sector reform. 
Promotional and information materials 
Liberty produced a variety of promotional materials and information guides. The focus groups 
were aware of the t-shirts, which were distributed at the town hall meetings. The slogan chosen
by Liberty was remembered, as indicated by the following comment made in the focus group: 
“The energy company representatives told us to take the old meters outside, and to
organize payment in order to have power. People had fulfilled their obligation: while 
previously only 20% had paid, now it is 80%, but there were still no results. People
learned of the Liberty Institute slogan: ‘Forget the dark past, work for a brighter future.’
People do what they can to save money by economizing on everything, and if they pay 
their bills, then the second party in such an arrangement must live up to its obligations 
as well.”
Focus group participants were aware of the consumers’ guide produced by Liberty, but were not 
willing to study it and felt that the guide would not be effective as a resource for helping them to
solve problems with the distribution company. 
Task Area 2: Anti-corruption 
Hotline 
39
Table 11 below shows the months that the hotline was in operation. As can be seen in the
table, the hotline operated in only three of the seven districts on a continuous basis. In addition,
it is unclear whether complaints or calls to the hotline were resolved or dealt with on a 
systematic basis. There were many calls to the hotlines, and a summary of some of the issues
is included in Appendix D. There did not appear to be a detailed record of all calls to the hotline 
or whether callers concerns were addressed. The Liberty team expressed their experience,
backed up by the focus group findings, that UEDC did not appear to have a consistent or
reliable mechanism or approach for dealing with customer complaints. Liberty also provided 
feedback in their review of the draft report that many customer concerns or requests for
information were addressed during the call, and others were passed along to UEDC. Few of the
focus group participants were aware of the hotlines. 
Monitoring 
Liberty’s proposal refers to monitoring corruption in the energy sector, but it’s not clearly 
indicated what is meant by this or how the results of the monitoring are to be used. In the
opinion of the evaluation team, this activity seems to have been de-emphasized because of the 
Rose Revolution and the ensuing changes both within the government and in Liberty Institute. 
Support for policy-making 
Liberty participated in the drafting of bankruptcy law relating to the energy sector that provides
for protection from creditors while the companies are restructuring. This law extended the
period that energy sector companies’ assets were protected from three months to one and a 
half years. Liberty reported that many energy companies made use of this law in the past two 
years. 
Table 11. Hotline Operation Data April 2004 May 2004 June 2004 July 2004 
August 2004 
September 2004 
October 2004 
November 2004
December 2004
January 2005 
February 2005
March 2005 
April 2005 
May 2005 
June 2005
Axaltsikhe
Kutaisi 
Lagodekhi 
Zugdidi 
Puti 
Batumi
Gori
Task Area 3: Accountability of political parties
Vote Smart 
The Vote Smart campaign was designed to help citizens make well informed decisions during
elections. The parliamentary elections were held before the project started, so the original 
40
design of this task was no longer useful. However, Liberty attended meetings at the 
parliamentary committee where energy issues were discussed and Liberty staff monitored main
political decisions in the sector. Information on important issues was distributed by e-mail 
and/or published in Liberty’s newsletter. According the Liberty Project Manager, the survey of
politicians, which was conducted under the political awareness test activity, should be
considered an integral part of the Vote Smart campaign. 
Political awareness test 
The political awareness test aimed to study the attitude of politicians toward certain energy 
issues and to establish the degree of their fairness and sincerity. A survey of 200 politicians 
was conducted in Tbilisi, and the survey results were reported in Liberty’s newsletter. 
Civic ratings 
Civic ratings aimed to reveal the opinion of different layers of society concerning energy issues
and politicians. A survey of 100 representatives from 37 NGO's was conducted. The objective 
of the survey was to study the vision of NGO's regarding the reforms, the current situation, and
expectations in energy sector. The results of the survey were shared with energy sector
stakeholders and published in the Liberty newsletter. 
Task Area 4: Increasing media capacity
Press Club 
The Press Club was a roundtable discussion by energy sector stakeholders that was broadcast
on radio. Important topics such as rehabilitation of Georgia’s power plants, privatization of the
energy system, energy consumer rights, and social safety nets for consumers were discussed
and debated. 
Radio programs 
Weekly radio programs were held on different energy sector issues. The format for these 
programs allowed for audience call-ins. According to project participants and others 
interviewed, one of the major areas covered was the popularization of public participation in the
energy sector reform process. 
Reporters’ Resource Center 
Liberty maintained its project reports and other resource materials that were available for 
journalists. Unfortunately, this did not seem to be a well-publicized or utilized resource. 
Training and awards program for journalists 
This activity consisted of a series of training sessions that were held for journalists on energy 
sector issues. The first two sessions provided general information on developments in the
energy sector in Georgia, which were followed by other sessions devoted to specific issues.
Table 12 below provides the list of training sessions that were held. Both the trainings and 
awards programs were highly regarded by journalists, as evidenced by their comments in a
journalists’ meeting organized as part of the evaluation. 
41
Media monitoring 
Two radio stations and five leading newspapers were monitored over a 17 month period to track
their coverage of energy sector issues. Each month, a report was produced (in Georgian) that 
summarized the coverage. This information was relayed to energy sector stakeholders, 
including the MEF, and was used to develop outreach strategies by the MEF.
42
43
Table 12. Journalist Training Sessions 
Training Date Main Invited Expert Name Institution Thematics
1 5-Dec-04 Buba Tsirekidze & Vasil Khorava CORE Int & Young Energy Experts Association Main Mechanisms of functioning of the 
Georgian electricity system and its 
problems 
2 29-Jan-05 Buba Tsirekidze & Vasil Khorava CORE Int & Young Energy Experts Association Main Mechanisms of functioning of the 
Georgian electricity system and its 
problems 
3 26-Feb-05 Aleksander Khetagury Ministry of Energy Future plans for reforms 
4 2-Apr-05 Liana Jervalidze Independent Expert Central Gas Pipeline 
5 16-Apr-05 Paata Lomsadze and Ketevan Kinkladze Center for Enterprise Restructurisation and 
Management Assistance 
Benduqidze’s Model of Energy Sector 
Privatization 
6 14-May-05 George Tavadze and his staff GNERC (Regulatory Commission) GNERC’s achievements and problems 
7 21-May-05 Kaplja and his staff Telasi Telasi Achievements and Problems 
8 11-Jun-05 UEDC’s staff UEDC/PA staff UEDC/PA Achievements and Problems 
9 Joseph Natroshvili GWEM (Georgian Wholesale Electricity Market) Possible reform directions and GWEM’s 
problems 
10 David Morchiladze and his staff Tbilgazi (Gas distribution company) Reforms and prospects of distribution 
company
3.4 Evaluation Findings 
 
3.4.1 Effectiveness of Liberty’s Program 
The Liberty Institute program pursued many different types of activities that ranged broadly both 
geographically and by intended target. While each of the activities could play a role in
increasing transparency of the sector and reducing corruption, the impact and effectiveness of 
individual activities is impossible to measure with the available information. At best, anecdotal 
evidence is presented. Comments on specific activities that were made as part of the
evaluation include: 
• The media capacity-building program strengthened contacts between journalists and key 
players in the energy sector. The journalism program was highly regarded by journalists 
and stakeholders who participated in the training and awards programs. The database
of energy sector experts that was created was not well publicized or utilized; journalists 
were not aware of the existence of the database.
• Web site, newsletters and energy user’s guides did not have a clearly defined target
audience or distribution channels. Materials were distributed to subscribers of regular
Liberty publications, and stakeholders in the sector with an interest in energy issues.
Focus group participants were not generally aware of the publications. 
• Media monitoring provided good information for energy stakeholders, and was used in
planning the winter energy campaign of MEF. Media monitoring is being continued
under the CORE contract, and so must have had some usefulness to the stakeholders. 
• Energy stakeholder meetings were held jointly with all key players in the energy sector. 
Several people mentioned that these were useful forums, and because they were held 
regularly, there was the necessary continuity to tackle important issues. 
• The Liberty program created space for public dialogue through radio programs, radio 
bridges, town hall meetings, roundtables, etc. However, it is difficult to measure the
effectiveness of this outreach. Call-in shows received a lot of calls, as did the hotlines,
but it is unknown whether the complaints and concerns expressed in these forums were 
resolved. If not, over the long-run, consumers could experience higher levels of distrust
in the forums, and perhaps also in energy sector institutions. 
• Liberty’s town hall meetings would immediately diffuse tensions in a highly politicized
environment, but these were not sustained interactions that allowed citizens to resolve
their problems. Often, Liberty became the intermediary for consumers who began to
come to them for help. However, this role seemed to be taken on as an urgent situation
arose, rather than on a sustained basis. Town hall meetings brought together 
representatives from the distribution company, MEF and NGOs to discuss problems and 
provided a forum for complaints to be expressed. The town hall meetings were held at a 
critical juncture in the development of the electricity sector in the regions; during the
period of installation of communal meters. Despite UEDC publicity campaigns, residents 
in the affected communities were not adequately prepared for this change, and were
outraged and confused. Liberty provided a forum in the town hall meetings to vent this 
anger and clarify issues. 
40 
3.4.2 Efficiency of the Program
The question of efficiency that is addressed in the evaluation is one of efficient use of resources. 
Given the monetary and human resources available to Liberty Institute, were they used 
efficiently? Prior to award of the cooperative agreement, Liberty underwent a financial audit to 
assess whether the record-keeping systems were adequate to track expenditures in compliance
with USAID guidelines. Concern was expressed about the tracking of expenditures on this 
project separately from other Liberty projects. Findings of the evaluation concerning efficiency 
include the following points. 
• Changes in project management and partners affected the continuity of the Liberty 
program’s activities; Liberty’s first Project Manager left to work more closely with the
government. Impact of ISFED suspending operations in Georgia was that new partners 
needed to be identified in the regions. This may have contributed to some of the political
work not being done as designed (Vote Smart, Civic ratings, policy work), as did the 
change in government following the Rose Revolution. 
• Staffs in the regions who were assigned to the project were working on other Liberty 
projects at the same time. This may have led to some confusion about the Liberty role in 
energy sector since the same people were also working on criminal justice, education 
and communications. Liberty staffs were well known from their work in these other 
areas, and for their commitment to public participation, transparency and dialogue 
regarding changes that are occurring not just in the energy sector. USAID expressed
some concern regarding the allocation of staff resources between projects, and Liberty
staff in the field were unable to state how much time staff spent on the USAID project vs.
other projects. 
• Transfer of information from hotline calls appeared to be bureaucratic (from regions to
project management in Tbilisi, which sent information to UEDC in Tbilisi and then back 
to regions). It was not clear if clients got a direct response to their query, although likely 
some inquiries were addressed directly in the calls. A more efficient mechanism would 
have been to have direct communication and transfer of information to UEDC offices in 
the region or town, to be dealt with by the local UEDC office. 
3.4.3 Program Management and Relations with External Partners 
Both the Liberty and CENN projects ended up collaborating on activities such as radio
programs, public service announcements and publications. USAID did not expect this 
collaboration, but it was mutually beneficial. Both programs collaborated with the MEF in 
stakeholder forums, which were rated as an effective activity by several stakeholders 
interviewed. 
Comments relating specifically to Liberty’s relations with external partners include: 
• Partnerships with different NGOs in the regions may have undermined Liberty’s brand 
identity. In one region visited by the evaluation team, Liberty was well-known and
respected. In the second region visited, Liberty’s activities were known under the 
umbrella name of a different organization, although the specific individual responsible 
was the same under both NGO names. The activities undertaken by Green Wave in the
regions may not have always been associated with Liberty Institute. While we can not 
45
categorically state whether this had a positive or negative influence on project outcomes, 
the lack of brand identity may have led to confusion and the lack of a unified message. 
• Liberty never received strong support or interest from UEDC; their involvement and 
support was variable, especially at the beginning. It appeared from comments made
that Liberty and UEDC had a somewhat antagonistic relationship at times. UEDC felt 
that Liberty was sometimes acting as a strong consumer advocate, not taking the
impartial role of mediator. Towards the end of the project, the relationship between
Liberty and UEDC improved when Liberty helped to diffuse anger in the regions where
communal meters were installed. One complicating factor for Liberty was that UEDC 
managers were often changing, on average every six months. This made it difficult for 
Liberty to liaison between consumers and UEDC. 
• Liberty had a strong partnership with MEF and the CORE public outreach and
participation project. Together, they collaborated on town hall meetings, public service
announcements, radio programs, and the March 2005 survey was revised to include 
questions that were important to MEF. 
 
• Liberty did not have much contact with GNERC, potentially because regulatory issues 
seemed to have less relevance in rural areas. Liberty could potentially have advocated
for consumers in the communal meter hearings held by GNERC, however, these 
hearings were held after the project ended. 
3.4.4 Barriers Faced by Liberty 
Barriers relating specifically to Liberty’s project include: 
• Liberty project objectives were quite broad and diverse. Activities were widely spread 
and difficult to merge into a cohesive program whose impacts are measurable. 
• Liberty was working in a difficult environment in the regions, covering a large geographic 
area. The issues faced by consumers in the regions were also more difficult. Liberty 
was too thinly staffed in the regions to expect major results or impacts from the regional 
work. 
• UEDC’s interaction and support was variable throughout the project, which hampered 
Liberty’s ability to influence either the flow of information that consumers received or to 
address consumers concerns. In addition, UEDC’s policy of continually changing
managers in the local distribution offices made keeping them abreast of the project
difficult.
• Liberty’s political affiliations may have been a barrier to how people perceived them and 
their effectiveness as independent representatives or mediators. Conversely, the
visibility and high profile of Liberty Institute may have been a positive influence on being 
able to deal with consumer complaints. It is difficult to judge the impact of Liberty’s 
reputation on program activities. 
• Liberty staff leaving to join the government may have undermined the continuity in the 
program both from the view of immediate staff vacancies and planned activities. When
the first program manager left Liberty, policy advocacy was essentially dropped from the
program’s activities. 
46
4.0 CONCLUSIONS AND RECOMMENDATIONS 
4.1 Barriers Faced by Both Projects 
The transitions within the energy sector in Georgia placed significant barriers in place to
achieving the USAID objective of “increasing public understanding of, and participation in,
decisions regarding delivery of energy services.” Some common barriers that both projects 
faced include: 
• There is a lack of understanding of the role of public participation within government. 
o GNERC sees public participation as being about information sharing rather than
listening and collectively solving consumer problems. Ombudsman is seen to be “an 
island rather than connected” to the system of problem resolution. 
o In the Government there is a wariness about how public participation can undermine
the Government’s broader policy agenda, since the public lacks technological 
knowledge about the sector. 
o Distribution companies view public participation as being about disseminating 
information. 
• Public participation in the new government was also given a low priority as the current
government is “fighting fires.” 
o Transitions within the sector have affected the priority given to public participation. 
The Government’s priorities are constantly changing and its focus has been on 
privatization, new metering strategies, and dealing with perception of corruption of
the sector. 
o The Rose Revolution has led to a higher public expectation of government, with high
potential for failure and disappointment. The current government may discourage 
public participation in its urgency to show progress on important issues. 
4.2 Support for the USAID IRs 
A variety of groups organized from throughout civil society, with an interest in electricity issues,
can offer a system of checks and balances for the power sector. This can potentially improve 
efficiency of the sector; building up public trust is an important part of the latter. Both programs
supported an increase in public trust in the energy sector through outreach and information 
activities (radio programs, energy roundtables, PSAs, consumer guides, regular multi￾stakeholder meetings). 
In addition, the CENN project contributed to developing public trust in the following manner: 
• The project ensured that information about different elements and processes of the
electricity sector were easily available to the public. 
• The ESCA activity eliminated customer frustration by helping them solve long term 
problems, specifically issues of debt and incorrect billing, which has prevented them
from having regular access to electricity. 
• There was greater transparency about billing and collection process. 
• The ESCA monitored theft and fraud issues more effectively, which gave customers 
more confidence in the service they were receiving. 
• Telasi gained greater visibility and now has plans to undertake more public outreach
activities that would improve public trust. 
47
• Customers saw real problems solved such as the problem of electricity lighting which
also helped build public trust. 
The Liberty program supported an increase in public trust particularly through the journalist
training and media capacity-building program. Liberty also played an important role as
intermediary in UEDC areas where tensions were high due to communal metering. The
resolution of consumer complaints was not assured through the establishment of either the 
hotlines or UEDC’s customer service departments; however, Liberty provided a forum for 
diffusing tensions. 
4.3 The Projects: Successes and Limitations 
The successes of the two civil society projects included: 
• Strong collaboration between the EGAT/EIT/E team based in Washington and the
Democracy and Governance team in USAID Georgia. Coincidentally, at the time the APS 
on energy governance was announced, USAID/Tbilisi was already thinking about issues of
electricity governance due to the local situation brought to the Mission’s attention by PA 
Consulting. To address this issue, Save the Children took the initiative to start brain￾storming with different NGOs. Save the Children was in a good position to help CENN and
Liberty with their proposals, contributing to their success in winning these international 
awards.
• The ESCAs have been established as viable intermediaries that offer essential services. 
They inform consumers, resolve problems, and represent consumer interests in various
public settings. The ESCAs’ success can be gauged by a number of factors including: key 
stakeholders view them as a legitimate representative of consumers’ interests; there is 
demand for similar organizations in the regions outside Tbilisi; and consumers who have
interacted with ESCAs believe that they are honest brokers between them and electricity 
sector corporations.
• CENN’s “natural leadership approach” and the extensive community mobilization leading up 
to the establishment of the ESCAs was a critical element in their success. ESCA 
representation at stakeholder roundtables gave ESCA leaders the opportunity to interact 
with other key stakeholders in the energy sector on equal footing. This improved their
credibility and facilitated their ability to be effective intermediaries. 
• The ESCAs’ strategy of solving concrete problems, specifically the issue of electricity debt
with Telasi, helped them achieve credibility and legitimacy within the broader community. 
• CENN’s school campaign on energy awareness was extremely popular and successful.
Discussions are underway to develop this component so that it can become part of the
national curriculum. 
• Through concrete grassroots actions, the ESCAs were able to ensure some accountability 
and transparency at the local level, and through that process alleviate some distrust. Their 
role as consumer advocates at the local level also paid dividend; at the national level they 
have not yet been tested. 
48
The limitations of the projects included: 
• As compared to CENN’s project, the Liberty project was overly ambitious, particularly
considering the more challenging environment that Liberty confronted in the regions. Liberty
failed to predict the need for mediation between consumers and the distribution company, 
UEDC, in the face of new reforms under PA Consulting’s management contract.
Consequently, although it did at times play an intermediary role, it was often not adequately 
prepared to undertake this role 
• The formation of the ESCAs into a national association with an expansion of its role both
functionally (from electricity to a range of services) and geographically (from six 
neighborhoods to all of Tbilisi) may be too rapid. It is likely that the ESCAs will not be as 
successful, as there has not been grassroots mobilization, or extensive interaction with key
stakeholders in sectors other than electricity.7
 
4.4 Role of Civil Society Initiatives in the Energy Sector in the Future 
At the onset of these two projects, Georgia faced a unique situation in the electricity sector. A 
decade of transition and uncertainty in the electricity sector – a reflection of a broader economic 
and political transition occurring in Georgia – produced an atmosphere of poor transparency and 
corruption, generating suspicion, distrust, and anger among consumers. Between 1997 and 
now substantial reforms have taken place.8
 The reform process, as expected, has been fraught
with difficulties. Uniquely, Georgia also faced economic transitions at multiple levels, ethnic 
conflicts on the border, and a decade of economic hardship resulting in limited to no electricity 
service. Consumers’ experience with privatized electricity in Tbilisi through AES Telasi was 
incongruous. Increasing tariffs (2.1cents per kWh in 1999 to 6.4 cents per kWh in 2003) and the 
introduction of disconnections for non-payment accompanied poor to non-existence electricity 
service and unreliable billing. This produced a real crisis of confidence, often manifested in
people on the streets of Tbilisi. Outside Tbilisi reform arrived more slowly and the project period
(November 2003-June 2005) corresponded with UEDC operations being placed under a
management contract. This brought with it substantial changes for consumers. Often these 
reforms were poorly communicated and had limited public involvement, generating a similar
crisis of confidence. It was within this context that the CENN and Liberty projects were
introduced. Although things have improved substantially with the Saakashvili government, 
particularly in Tbilisi, there are still challenges ahead. Most immediate is a 50% tariff increase.
In order to smooth the transition, what is required is energy sector governance that offers 
consumers transparency, accountability and interaction with electricity sector entities. 
ESCAs have proved effective as grassroots organizations that offer consumers some recourse
for their problems in the electricity sector (and in some other sectors as well). This has been 
 
7 Since November 2005, the six ESCAs have been united into one association. The organization has achieved some
success in solving communal problems other than electricity. According to CENN, in the period November 2005 to 
March 2006, the ESCA has solved 106 electricity, 51 waste management and 57 water related problems. In addition, 
the ESCA has begun to establish relationships with other key stakeholders in water (Tskalkanali) and waste 
management (Civil Services Department). Also according to CENN, the ESCA will work at both the grassroots level 
and the policy level, with the ESCA’s personnel working with both decision-makers and the target groups. 8 The industry had been unbundled; there has been privatization of the Tbilisi distribution system (AES Telasi) which 
has also been re-sold (RAO Telasi); a regulatory commission had been formed and new electricity legislation passed. 
The reform process continues with frequent adjustments. The most recent is the government’s intention that UEDC 
will be sold to private investors by the summer of 2006. 
49
particularly so for less well-off consumers in neighborhoods. At the neighborhood level, ESCAs
work to resolve people’s problems, help them restructure debt (resulting in the reconnection of
electricity), and provide consumers a means through which to transverse the maze of Telasi
bureaucracy. Through this interaction, consumers feel more confident about resolving problems 
with the distribution company and are empowered. ESCAs have also represented consumer 
interests at government bodies, specifically at GNERC. However, the evaluation team found
little evidence that they have been particularly effective. This may be the result of two factors: 
that the ESCAs are at an early stage of their development and as yet are not capable of playing 
such a role; and the regulatory process in Georgia is weak and there is little opportunity for 
consumer interest groups to make meaningful contributions to policy making. Nevertheless, the 
ESCAs clearly have acquired a national presence. 
Even though the Liberty project did not plan to play an intermediary role between consumers 
and the UEDC, circumstances – in particularly the communal metering issue – made
intermediation necessary. Despite the lack of preparedness for this activity, Liberty’s 
interventions were often beneficial. Local Liberty offices represented consumer interests in
resolving some of these problems. A common suggestion that we heard in the field was the 
need for ESCA-type organization in the regions. This suggestion came not only from Dean
White, Chairman of UEDC, but is also self-evident by the number of communications CENN 
received from the regions asking for their help in organizing similar organizations. As Dean
White stated: 
“ESCA stands a better chance of success in this area through providing improved information and 
an organizational structure for customers that can collectively pursue an objective. The utility and 
regulator are more likely to be influenced positively by an organized group of consumers, with
well crafted arguments, than various individuals trying to do so separately. 
Secondly, the ESCA can be useful for communal metering/billing. For instance, there is a service
agreement between the utility and the communal grouping that should describe the roles and 
responsibilities of the parties. Under the regulatory guidelines, customers are responsible for 
allocating usage amongst themselves, or the utility can use an equipment inventory for each
customer to allocate the bill if the customers are unable to agree. This is difficult for customers to 
comprehend and support could be useful in this area. Further, an ESCA could assist with ways 
for each community to better design their own allocation scheme. For instance, in some areas,
there is old metering equipment which although too inaccurate for individual billing purposes
could nonetheless be "cleaned up" for a couple of GEL per meter and provide a basis for an 
allocation. Or, the community could pursue some further submetering (to reduce the number of 
customers served by a single meter).
Thirdly, it appears that the GoG will pursue a major tariff increase later this year (even 50% or 
higher). This will be a shock to many and adjusting to this will take time. Perhaps an ESCA
could also work with communities to identify localized options to moderate the impact, such as 
ways to improve energy efficiency, or looking for areas to promote fuel substitution (email 
communication).” 
There is clearly a need to consider the establishment of community-based organizations like
ESCAs in the regions. As noted above, communal meters are still causing tension and are not 
widely understood or accepted. There the tariff increase planned will inevitably prove
contentious. Even more challenging is the upcoming shift from communal meters to individual 
meters and the planned sale of UEDC to a private investor in the summer of 2006. All of these 
changes will be challenging for consumers who have already had to accept significant changes 
in their electricity supply. In such a context, a third party intermediary would prove useful. 
50
The ESCA too is at a crucial stage. The recent formation of the national ESCA and their 
expansion both geographically and functionally may undermine their very strength as grassroots 
organizations. Geographically, ESCA leaders continue to be located in their local
neighborhoods and have a presence in their local communities. However, the centralization of 
the ESCA offices as well as ESCA leaders’ involvement at a more national level may undermine 
their local links. ESCAs were always active in a number of sectors beyond electricity. However, 
their official expansion in these areas without the necessary lead up training – particularly
familiarity with each sector and their key stakeholders – could lessen their effectiveness. CENN 
justified the formation of the association for both purposes of sustainability, as well as for the
purpose of moving ESCAs center stage on the public policy arena as the consumer 
organization. Although these steps are very justifiable, much more attention needs to be given
to how ESCAs will manage these multiple roles, and whether the existing proposed structure is
the only one to ensure the ESCAs’ effectiveness and sustainability. 
ESCA-type organizations clearly serve two functions and are relevant both in a transitional and
in more stable electricity environments. They can be a conduit for public information, but more
importantly they can represent organized consumer interests, essential in an efficient
democratic process. Such consumer organizations are common in the United States and other
well developed electricity sectors and they are supplementary and necessary institutions to
other bodies, like utility companies’ customer services and public relations departments,
government and regulatory ombudsman. 
As we saw in the evaluation, existing outreach programs serve an informational need or a social 
marketing approach rather than actively resolving problems that consumers face. UEDC and
Telasi have customer service departments, but from the comments heard in the evaluation, it
was clear that there remains a lot of distrust and lack of satisfaction. Although there is clearly a 
demand for information – PA survey and BCG surveys consistently demonstrated that the public 
wants more information about the energy sector – there is a need for a consumer representative 
body. Although a public advocate exists at GNERC, it is not an easy forum to access. The
consumer advocate is there to help resolve problems with different arms of the sector, but is a 
forum of last resort. Resolution at a lower level (i.e. the neighborhood levels, the level at which
ESCAs work) may be more efficient and less contentious. 
The effectiveness of an organization like the ESCA will depend on the environment for public 
interaction in the electricity sector. Currently, this environment has been weakened. The
Government has ambitious and contentious plans for the sector and is wary that their policy
agenda will be undermined. They worry that the public lacks the necessary knowledge to be
constructive in the policymaking process and, by participating, will slow the pace of reform.
Under this government, GNERC has been weakened, with more power shifting to the Ministry.
At the same time, although the Government is open to public participation – as stated under the
new Amendment to the Electricity Law on market rules – it is unclear how this participation will 
be structured. 
4.5 Recommendations 
1. Support for the ESCA should continue for at least another year. During this period, a
means of self-financing needs to be found to allow the ESCA to be institutionally and financially
sustainable. Currently, the ESCAs are trying to establish a user fee model. However given their 
client base, which is mainly consumers at the lower income spectrum, this is not likely to be a
viable approach. 
51
2. There needs to be a review of the ESCA’s role and the level at which it can function
most effectively as a lobbying organization. Currently, the ESCA Association is covering
multiple roles- condo/neighborhood association and city-wide advocacy organization. It likely 
can not fulfill all of these roles successfully. 
 
3. There needs to be a carefully consideration of the expansion of the ESCAs to the UEDC 
area. One of the possible suggestions has been to utilize the ESCAs themselves to lead the
formation of similar organizations in the UEDC area. However given the current limited capacity
of the ESCAs, it is recommended that they not serve as the primary drivers of this activity. 
Furthermore, this may also not be sensible as it contradicts a central platform of CENN’s 
success in establishing the ESCAs in Tbilisi. The success of the ESCAs has largely been due to
local mobilization and the process of selecting ‘natural leaders’. Knowing the community and
building confidence in the project at the local level have been central elements of the ESCAs’
success and will play a key role in their success in the UEDC regions. For the UEDC regions,
the formation of the ESCAs will need to follow a similar confidence-building approach. The
ESCA leaders from Tbilisi can play a role in training or sharing experiences, but are unlikely to 
be the leaders in the regions. 
4. ESCAs need access to specialized resources, both technical and legal, to strengthen 
their effectiveness and scope. ESCA leaders mentioned that they need support on internal 
building issues (elevators, hallway lighting, stairways, roofs, etc.), electricity consumption in 
internal networks, and legal support to deal with the specific legislation on consumer rights and 
to strengthen their ability to defend consumer rights. 
 
5. ESCAs can also play a watchdog role at the municipal level, ensuring transparency of
municipal services contracts and municipal expenditures on neighborhood improvements. This
role needs to be strengthened but must be considered in light of the overall assessment of 
ESCAs’ role (Recommendation 2). 
6. Despite USAID and other donor investments in the regulatory process in the past, there
is a continued need to strengthen such activity in order that a public space is created for public 
participation at the policy level. To this end, training and institution building for GNERC, ESCA, 
and citizens needs to continue. Currently ESCA leaders participate in the policy process at
various levels, particularly with the municipality and GNERC. To strengthen the regulatory 
process, more training is required both for ESCAs and GNERC. ESCAs need to be taught how 
to approach regulatory issues and how to participate in the regulatory process. The regulatory 
body, despite its function, also has a limited understanding of the role of civil society in the 
regulatory process. The current view is that ESCAs are a medium through which public 
information can be shared rather than a valid means through which consumers ‘voices’ on 
electricity service delivery can be heard and incorporated in the policy-making process. New 
government legislation which will decentralize local government will have implications for how
ESCAs can influence the local policy and decision-making process. Consumer organizations 
like ESCAs can participate in the policy making process at a decentralized level. All these
aspects of training and institutional building will strengthen ESCAs’ (and other future consumer 
organizations) effectiveness. 
7. A fully functioning, democratized energy sector requires public participation at various 
levels. There is a need to develop the capacity of think tanks, academics, and journalists who 
can be well-informed voices to help ensure transparency and accountability in the sector, and
ensure that alternative views are expressed and accounted for in the policy-making process. 
52
Appendix A. Evaluation Scope of Work 
I. Introduction and Background: 
USAID’s Energy Team (EGAT/EIT/E) has taken a leading role in supporting new approaches for 
increased public involvement in the sector, with the aim of improving public trust in energy 
institutions and in collaborative problem solving. Innovative approaches for including the public
are especially called for when utilities and regulatory bodies are themselves in a transformative
moment. The Energy Team has hypothesized that civil society organizations could play a
supportive role in this transformation, assisting energy institutions in identifying gaps in
governance processes and service delivery from the public perspective, and improving 
transparency and accountability in the sector. 
In this context, the Energy Team awarded cooperative agreements to two civil society 
organizations in Georgia: The Caucasus Environmental NGO Network (CENN) and the Liberty 
Institute. These cooperative agreements were cost-shared by USAID’s Energy and
Environment Office in USAID/Georgia. These contracts ended in July 2005. 
II. Scope of Work 
2.1 Program Objectives 
USAID would like an independent assessment of recently completed projects in Georgia in
order to monitor the results of its civil society program, make improvements where necessary,
and document successes and potential for scale-up in country and replication in others. 
2.2 Sub-activity Objectives 
The research should focus on primary, on–site research, and include interviews with all relevant 
stakeholders. Stakeholders include the energy institutions that CENN and Liberty Institute 
interacted with in the course of carrying out project activities. These will include (i) Telasi
Distribution Company in Tbilisi, (ii) United Distribution Company in other regions of Georgia, (iii) 
Ministry of Fuels and Energy (iv) Georgia National Energy Regulatory Commission, (v) relevant
municipal office (vi) civil society organizations and the segments of the general public (through 
focus groups). Secondary documents should be reviewed as necessary, including those
pertaining to USAID objectives in Georgia. Interviews with USAID staff from the E&E Bureau
are also desirable. 
2.3 Tasks 
The contractor will undertake the following tasks:
Task 1: Propose a methodology for undertaking project evaluations. The methodology should
specify how impact will be measured and should provide specifics on how the contractor will
define and distinguish between project outputs and outcomes. 
Task 2: Work with USAID’s activity manager to apply this methodology to evaluate the impact of 
the project’s undertaken by CENN and the Liberty Institute. A research agenda should be 
developed around the specific problems these organizations were attempting to address,
including but not limited to: collections, theft, remetering, input into policy decisions, input into 
service rules and customer service contracts. These sectoral problems should be distinguished
53
from the institutional objectives of building awareness, credibility and legitimacy with the public,
and the public outreach and participation strategies used to address them. Successes should
be recorded even if these were not explicitly articulated as goals of the project. 
Task 3: Carry out an assessment of 
(i) the effectiveness of the CENN and Liberty projects 
(ii) the potential for increased effectiveness 
(iii) barriers in achieving objectives 
(iv) the benefit of civil society involvement measured against the cost. 
III. Working Relationships
The contractor should develop working relationships with CENN and the Liberty Institute. 
IV. Functional Labor Requirements 
Energy specialist with evaluation experience. 
Political scientist/political economist with energy sector experience. 
Deliverables: 
• A fully comprehensive assessment with documented successes, identification of
weaknesses, and potential for scale-up (in Georgia) and replication (globally). A final 
report should be submitted to USAID/Georgia and USAID/Washington – EGAT/I&E/E 
• Presentations to USAID staff in Washington, DC. 
54
Appendix B. List of Interviews Conducted 
Organization Person (s)
USAID/I&E/Energy Team Ms. Davida Wood
USAID/ENE and I&E Mr. Walter Hall 
USAID/Tbilisi Ms. Dana Kenney 
Ms. Keti Bakradze 
Perspectives Group Mr. Doug Sarno 
Caucasus Environmental NGO Network Ms. Nana Janashia 
Ms. Tamar Pataridze 
Mr. Nika Malazonia 
Ms. Irina Kitiashvili 
Mr. Goga Japaridze 
Mr. Levon Tavarkiladze (former CENN Project 
Manager) 
Liberty Institute Mr. David Lezhava 
Mr. Levan Ramashvili 
Ms. Veronica Chkadua 
Ms. Nino Chava (Kutaisi) 
Mr. Irakli Bachudadze (Kutaisi) 
Mr. Gia Andguladze (Alkhaltsikhe) 
Representatives from BCG Research and Radio 
Green Wave 
Ministry of Energy Deputy Minister Khetagury
Ecovision Mr. Gia Sopadze 
TELASI Mr. Valeri Pantsulaia 
Mr. Levan Murusidze 
Ms. Nino Tivadze (Varkheteli Districti) 
Mr. Temuri Tsintsadze (Avlabari District) 
United Energy Distribution Company 
Main Office
Mr. Dean White 
Mr. Irakli Elashvili 
Mr. Avto Dvalishvili 
United Energy Distribution Company 
Akhaltsikhe
Mr. Nika Tsiklauri 
United Energy Distribution Company 
Kutaisi 
Ms. Teona Geguchadze 
CORE International Ms. Buba Tsirekidze 
Ms. Inga Pkhaladze 
Energy Service Consumers Association ESCA Round Table with all 12 ESCA leaders 
Georgia National Energy Regulatory Commission 
(GNERC) 
Ms. Irma Kavtaradze
Ms. Nino Asatiani 
Ms. Nia Tushkia 
School #84 Teachers who participated in the CENN educational 
program 
PA Consulting Mr. Bob Baumgartner 
Open Society Mr. Irakli Khodeli 
Tbilisi Municipality Mr. Iago Dvalishvili 
Mr. Otar Orgobiani 
Kutaisi Municipality Mr. Giga Shushania 
Akhaltsikhe Municipality Mr. Shalva Dalalishvili 
Journalist Meeting 16 representatives from the media: television, radio 
and print 
IREX Media Ms. Lika Chakhunashvili 
55
Appendix C. List of Documents Reviewed
CENN 
Proposal and Annexes
1. CENN-ESCA final proposal 
2. Questionnaire 
3. Stakeholder Inventory and Analysis 
4. Mobilization Plan 
a. 2004 Work Plan 
b. 2005 Work Plan 
c. No Cost Extension Work Plan 
5. Sample Zoning of Project District 
6. Community Selection Criteria 
7. ESCA Leaders and Contacts 
8. ESCA Work Plan 
9. Painting Action in Schools 
10. EE Books for Schools 
11. Materials for Open Classes 
12. Excursion in Telasi 
13. Excursion in Gardabani 
14. Publication on Electricity Tariff 
15. P2 Publication 
16. Energy Services Consumer Guide in Tbilisi 
17. ESCA’s Brochures 
18. Calendar 
19. Posters 
20. Booklet on Electricity Safety Rules 
21. Newspaper Articles 
22. Training in Community Mobilization
23. Training in Energy 
24. ESCA Training Materials 
25. Roundtables 
Additional Materials
1. Sample questionnaire for rapid assessment in 6 Tbilisi pilot areas 
2. Result of Rapid Assessment 
3. CENN ESCA budget 6/18/03 
4. CENN Financial Report 11/1/05 – 1/15/06 
5. Socio-economic Effectiveness of Structural Adjustments in the Energy Sector 
6. Interim report 1/13/06 
7. PMP 
8. Work Plan 2003-2004 
9. Final Report 
10. Letter of Support to the Caucasus Environmental NGO Network (CENN) by Nick
Gilauri, Ministry of Energy Georgia, July 21, 2005 
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Liberty Institute 
1. Liberty Institute proposal for ESG RFP - 6-18-03 
2. Liberty Institute proposal budget 
3. Liberty Work Plan – General 
4. Liberty Work Plan 12-03
5. Survey cover questions 
6. Electricity Supply Consumer Survey statistical report 
7. Liberty Focus Groups – analytical report 
8. Final Report 
Weekly and quarterly reports
1. Weekly Report February 10, 2005 
2. Weekly Report February 17, 2005 
3. Weekly Report February 24, 2005 
4. Weekly Report March 3, 2005 
5. Weekly Report March 10, 2005 
6. Weekly Report March 17, 2005 
7. Weekly Report March 24, 2005 
8. Weekly Report March 31, 2005 
9. Weekly Report April 7, 2005 
10. Weekly Report April 14, 2005 
11. Weekly Report April 21, 2005 
12. Weekly Report May 19, 2005 
13. Weekly Report May 25, 2005 
14. Weekly Report June 2, 2005 
15. Weekly Report June 9, 2005 
16. Weekly Report June 16, 2005 
17. Weekly Report June 24, 2005 
18. Performance Report #4, October – December 2004 
19. Performance Report #5, January – March 2005 
PA Consulting 
1. UEDC Public Outreach report – “GESI study report on communications with
minorities”. 
2. 2005 Citizen and Enterprise Baseline Survey – Responses from Telasi Customers 
3. 2005 Citizen and Enterprise Baseline Survey – Select Responses from Georgian
Customers 
4. Communications Strategy for the UEDC, Georgia Energy Security Initiative, PA 
Consulting, November 2005 
CORE 
1. “Energy Attitudes and Opinions of Georgia’s Citizens and Enterprises” 
2. Gender and Energy Case Study 
57
3. White Paper: Issuing “Electricity (Capacity) Market Rules” under Public 
Administrative Proceeding as Provided by the “General Administrative Code of
Georgia” 
4. Advisory Assistance to the Ministry of Energy of Georgia: Public Outreach
Strategic Plan, Amendment No. 1, April 27, 2005 
5. Comprehensive Public Participation and Outreach Plan, Year 2 (2006),
December 30, 2005 
6. Summary of GNERC Meetings: 
a. July 22, 2005 
b. January 17, 2006 
c. July 15, 2005 
 
58
Appendix D. Summary of Hotline Calls Received in Tbilisi and Regions 
Tbilisi
The concerns of residents in Tbilisi were primarily about theft, meters, electricity shortages, and
poor service by Telasi representatives. 
Numerous cases of electricity theft by the customers were identified as one of the major 
problems concerning electricity issues. Inhabitants of Tbilisi’s various districts expressed their 
dissatisfaction regarding illegal consumption/theft of electricity by neighbors. The belief is that 
when neighbors install illegal transmission lines, it affects the supply to paying customers, 
leaving many without electricity. Eleven of 35 recorded hotline complaints were about theft. 
Those who do make timely payments to Telasi do not have better service than those who steal 
electricity, which provides little incentive for those who are legal consumers to continue to pay 
their bills. 
There is suspicion surrounding meters in Tbilisi. Customers feel that they have been forced to
install the meters at their own cost without the guarantee that electricity will be supplied to their 
homes. Some believe that Telasi representatives are tampering with the meters to increase
electricity charges. 
Systematic electricity shortages and inconsistent voltage are frequent complaints. There is a
belief among callers that supply is determined based on an unfair system of favoritism for the 
wealthier communities, commercial buildings and businesses. 
Zugdidi
From March until October 20, 72 people called to log complaints at the Hotline. The most acute 
problem is that the time-table of electricity supply is not being observed. The inconsistent and
unplanned supply of electricity causes many problems. In some districts, residents may go
weeks without electricity. 
Callers do not understand why after so many years of attempted reform and promises made, 
the electricity supply problem has still not been solved. Residents recognize that electricity has 
become a political issue, and that each election beings promises from government officials of a
solution to the supply problem. Once the elections have passed, the issue is no longer
addressed. 
Callers are also concerned about the dangers of illegal cables and poles. The illegal 
connections not only present dangers due to falling wires and electrocution, but it is also 
decreasing the quality/voltage of the electricity that paying customers receive. 
Some of the residents in the region purchase their electricity from commercial suppliers. These
callers are dissatisfied with the quality of the electricity, and feel that the money that is being
collected for payment is not being credited to their accounts. 
Poti
The major electricity problems in Poti concern permanent shortage of electricity supplied,
installation of meters, and the provision of electricity by commercial energy companies rather 
than the United Distribution Company (UEDC). 
59
Some callers feel that they have been forced into purchasing electricity from commercial
suppliers by energy company representatives, or by UEDC, which has almost entirely cut off 
their electricity supply to the region. Those who purchase electricity from commercial suppliers
suffer from high electricity costs and poor electricity quality due to un-serviced transmission 
lines. 
Residents are unwilling to install expensive meters if they will not be guaranteed electricity 
supply from UEDC. 
Kutaisi
Meters are a major problem in Kutaisi. Meter installation has not been uniform; some families
and entire communities have not been supplied with meters. Some customers have installed
the meters, but are still not receiving electricity. Others are hesitant to pay for meter installation
if electricity supply cannot be guaranteed. 
Public protests have occurred in the region, provoked by the distrust that citizens have of the 
energy company. Residents were told that if they installed meters and make their payments,
the electricity supply will improve. Despite the increased installation of meters, and the
significant increase in payment collection, the electricity supply has not improved, and the 
supply time-tables are not being observed. 
Commercial energy suppliers play an important role in Kutaisi. Despite the high cost and 
violations in security standards, customers find it in their best interest to purchase electricity 
from these suppliers, because they provide more permanent electricity than Telasi is able to. 
Lagodekhi
Residents are very concerned that the more privileged areas of town are receiving better 
electricity service than the less prestigious half of town. A local radio station has received a
petition signed by 168 residents who are concerned about this situation. 
Some residents have been without electricity for months. One caller was concerned because
neighbors are using electricity from a hospital, and are receiving consistent electricity supply, 
while those who do not have the special wires needed to use the electricity from the hospital 
must do without. 
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Appendix E. Focus Group Summary
Top Line report 
A Group Discussion Survey was carried out by GORBI on behalf of the Academy for 
Educational Development (AED). The focus group study covered the towns of Tbilisi,
Akhaltsikhe and Kutaisi. The study was designed in conjunction with AED experts with the aim 
of assessing the effectiveness of projects implemented by The Liberty Institute NGO and the
Caucasus Environmental NGO Network (CENN). 
The main objectives of the survey were: 
• To determine the relationships between electricity distribution companies and customers 
• To identify problems in the energy service sector
• To assess customer knowledge about the energy service sector. 
An additional topic for research in Tbilisi was: 
Evaluation of the effectiveness of the Association for the Electric Services Customers (ESCA) 
Qualitative methodology focus group study was used for collecting information. A total of four 
focus groups were conducted within the research framework: one each for Kutaisi and 
Akhaltsikhe respectively, and two for Tbilisi, the capital city. Focus group guides and 
instructions for survey and criteria for recruiting focus groups participants were mutually agreed
upon with AED. 
Focus group participants in Kutaisi and Akhaltsikhe were selected from people who had 
participated in town hall meetings conducted by the Liberty Institute. Recruiters were instructed
not to invite journalists, politicians, and employees of local electricity distribution companies or 
representatives of local self-government or NGOs to participate in focus group discussions. 
In Tbilisi the Association of the Electric Services Customers has been founded in six city 
districts, which have been divided accordingly into “poor payer” and “good payer” districts. 
Representatives for the two groups in Tbilisi were selected from a ”good” district (Varketili) and
a “poor” one (Avlabari). In both districts the selected participants had interacted with the 
“Association”/ESCA. 
Ages of participants ranged from 21 to 71 years. Most participants were unemployed women, in
the regions as well as Tbilisi. The profile of the focus groups was nothing out of the ordinary, 
and reflective of the high level of unemployment in Georgia. Moreover, more represented since
they are a socially active part of the population and they handle most problems of communal
service ‘utilities’ payments. 
On average, each focus group lasted for 90 minutes. All group discussions were videotaped.
The main survey findings are provided below and categorized with particular headings,
supporting research findings and accompanying commentary. 
 
61
MAIN FINDINGS: 
KUTAISI AND AKHALTSIKHE FOCUS GROUPS: 
• According to group participants Kutaisi is the city with the most acute energy problem, as
indicated by frequent power outages due in part to downed lines. Payment for supplied 
electricity does not mitigate this problem. Uninterrupted electricity is not guaranteed 
even when bills are regularly paid. 
• The regional, state-owned United Electric Distribution Company (UEDC) prefers to use a
tough approach with customers. Relations are generally poor because the company 
usually takes one-sided decisions; customers are left with few options and they can only 
comply. 
• The stance is plain: if the bill is not paid then the electricity is shut off. The company is 
reluctant to postpone payment or negotiate about restructuring payment plans. 
• Focus group discussions show that payment has improved in the regions. Previously 
only 20% of the population paid for consumed electricity but now the payment rate has 
increased to 80%. The power distribution company does nothing to assist consumers, 
as it is reluctant to take on the responsibility of dealing with energy theft. Rather, it 
prefers to deal with loss through communal electric meters. The cost of this stolen
electricity is then billed to other customers, which naturally angers them and further 
complicates customer relations; there are also complications and disputes between
neighbors as a result of such problems. 
• The company has no standard policy for dealing with customers. Quite often 
contradicting decisions are taken on similar requests. Sometimes the distribution 
company takes the customer’s side, but then acts differently toward other customers in
similar situations. 
• There is no delegation of responsibility within the distribution company. No one at the
company service centers is authorized to make decisions or provide any information to 
customers. People must address the company's management to solve their problems. 
Arranging meetings with the management (director) at the distribution company is much easier 
in Akhaltsikhe than in Kutaisi. However, neither in Kutaisi nor in Akhaltsikhe were customers 
provided reliable answers to their questions. 
• Local municipalities fail to protect customer rights. As Kutaisi’s mayor stated, “The 
distribution company is a state within a state.” While many lawsuits against the 
distribution company have been won in the regions, no implementation on the part of the 
company followed the court orders. 
• According to the focus groups, the Liberty Institute and the Akhaltsikhe-based Union of 
the Democrat Meskhs are the only organizations that have clout with the distribution 
company. Only with the help of these NGOs can meetings of the company, the 
municipality and the public takes place. The public would like such meetings to be held
on regular basis, as it will help protect their rights should the company fail to keep its 
promises. 
62
• In some cases the Liberty Institute protected customer’s rights and acted as a mediator 
between the distribution company and the population. However, such instances are rare 
and, in the opinion of the participants, these instances do not sufficiently alter the
existing situation. 
• According to the focus groups, the public has no information about the existence of the
Customer Hotline. Some people said they had seen a copy of the “Guide for Electricity
Energy Consumers,” but were unwilling to study the book, being sure it would not help
them resolve problems in relations with the distribution company. 
• Public involvement in the ongoing regional energy sector reform process is negligible.
There are no surveys of public opinion or interactive TV programs dedicated to the
reform. The public is poorly informed about the guidelines for energy sector 
development. No useful information is available through press or radio. The information 
provided by TV channels is concerned only with energy supply problems of the capital,
and never addresses regional problems. 
• Focus group participants think the only solution is the installation of private electric 
meters, which the distribution company promises in time. Installation was begun in
Kutaisi but was suddenly stopped; no one seems to know when the installation will be
complete. The public believes that the distribution company is trying to deliberately 
prolong the process, as in the existing situation the public cannot control the amount of
energy they use and that enables the company to overcharge clients. 
• Some focus group participants think that privatization of the distribution company could 
be a solution. At the same time, they are aware that unless the state defends the rights 
of its citizens, the new private company’s conditions may be worse. 
TBILISI FOCUS GROUP: 
• The public is trying to solve problems in the electric service sector, but the task is 
difficult, as institutions remain indifferent to the public and it is difficult to find a common
language. 
• The public cannot defend their rights because Telasi’s public relations service is 
ineffective. There are too many complicated bureaucratic circles, incompetent clerks,
and a lack of transparency. 
• Customers think that Telasi and Energy State Regulating Company (ESRC) officials are 
advising customers on their responsibilities rather than helping them understand their 
rights. 
• The public perceives ESCA as an NGO that protects their rights; they are also aware
that ESCAs suit Telasi’s interests as well. Customers trust ESCAs as a neutral mediator 
between them and the energy supply utility. They believe that ESCAs study each
particular case carefully, clarify the situation for customers, and resolve inadequacies in 
operational procedures. After the ESCA resolves a customer problem, customers are
willing to fulfill their actual obligations to Telasi. 
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• According to customers, ESCA’s activity help save time, as customers are no longer 
obliged to search for information on various issues of energy or rights for themselves.
ESCAs professionalism ensures the positive resolution of cases in favor of their clients. 
• Customers think that ESCAs are important for people who, for lack of time, adequate 
health, or age-related problems are unable to address problems in the utilities sphere
themselves. It should be noted no such organization previously existed in Georgia. 
• The public should be better informed of the existence of ESCAs, as most people learn
about it from informal contacts. If ESCA’s sphere of competence increases to include
other utility sectors, and more people learn of its benefits, then a portion of the public will
surely want to join the association, while others will be willing to pay for legal advice and 
seek help in protecting their rights.
DETAILED FINDINGS 
REGIONAL FOCUS GROUPS
The state-owned United Energy Distribution Company (UEDC) supplies Georgia’s regions with
electricity. The situation is the most acute in Kutaisi, where most customers pay but the 
electricity supply is still inconsistent. According to the focus groups from Kutaisi and 
Akhaltsikhe, payments are collected according to collective meters that measure housing blocks
or villages. 
Sometimes over a hundred customers are served by such communal electricity-meters. The
cost of electricity is then evenly divided among them. The public feels that this method has 
many disadvantages: 
An employed, woman, 50, Akhaltsikhe: “We have to pay 60 GEL each month
according to the meter’s readings. Even if we pay in full but our neighbors do not,
then the power is cut for everyone. And with each cut in the supplied energy, our 
debt continues to grow as the cost of the energy is evenly divided among all
customers. This system of payment has pitted neighbors against one another.” 
Above mentioned payment procedure caused disagreements among population and 
consequently number of disputes among customers became more frequent. 
Unemployed man, 24, Akhaltsikhe: “Relations among neighbors has deteriorated 
because of communal meters. A group of suspicious neighbors broke into my
house looking for signs of electricity theft. Their search was in vain.” 
To ensure fair billing, the public made an agreement with the distribution company to pay for old 
individual meter installation outside [in the streets]. This has worked in some cases, but has 
failed in others where the difference between communal and individual meters numbers was 
substantial
Woman from Akhaltsikhe 52, NGO member: “On November 24 we installed old
individual meters outside. Previously collective meters we’ve been asked to pay
60 lari per month, but as people were unable to pay we lived for half a year 
64
without electricity. Now we pay just 8-12 lari, but we fear someone will steal
energy from our line and we’ll have to pay for the theft.” 
Unemployed woman from Kutaisi, 51: “We did everything we could, even 
installed old meters at our own expense, but the difference between old and
collective meters was sometimes 250 lari. We demanded a line check, but no
one was sent. Unlike specialists, simple folks cannot find the perpetrator. Our 
business is to pay.” 
However, even the public identified energy thieves, no punitive measures followed, as the 
distribution company thought it easier to simply collect money from regular paying customers. 
Unemployed man from Kutaisi, 31: “I found out who was stealing power and
informed our substation. They told me to cut the line myself as they had no 
personnel for the job.” 
In Akhaltsihe customers used some additional protective measures. Some families united to
buy a new collective meter, that would measure electricity consumed by the families and 
installed it at local substation. 
Unemployed woman from Akhaltsikhe, 60: “We had been asking our distribution
company for a permit to install own collective meters. Finally we were granted 
the permit on December 11. We had the meter checked by the substation
specialists and installed. Since then we have had no problems with payment.”
When power is cut customers phone their local substations, but obtaining information is next to 
impossible. 
Woman from Kutaisi, student, 21:”Service centers do not provide adequate
information, customers are not satisfy with the quality of received information.
There is an information deficit.” 
Woman from Kutaisi, 31: “We are given only 2 reasons for cuts: poor payment, & 
if we object, then breakage. It’s no use asking for explanations.” 
There are no public relations services at the substations, and the public is unaware of the
obligation of those who answer. Customers complain that the information they receive is
inadequate.
Man from Akhaltsikhe, unemployed, 26: “The distribution company substations 
have no public relations services. Different people answer us. Information is 
mostly unreliable. Rules once set are often changed.” 
Public access to the main office is most difficult in Kutaisi, where customers managed to meet
with the top manager only after staging a rally and with the help of the Liberty Institute. 
However, neither in Kutaisi nor in Akhaltsikhe did such meetings bring any success.
Unemployed woman from Kutaisi, 31: “The clerks at the distribution company
could not provide any information. We went to the main office but the guards did 
not allow us to enter until an NGO representative took us into the top manager’s
65
office. However, he [the manager] could not explain why the power had been
cut.” 
Workingwoman from Akhaltsikhe, 52: “We go to the distribution company almost
every day to get a permit to buy a commercial meter and install it at the local 
substation. Although the local manager agreed to give us a permit a week ago,
now he listens patiently and tells us that he is not authorized to grant us a
permit.” 
The distribution company avoids fulfilling its duties and customers have to buy new cables
themselves and cover the expenses of transformer repair. The company often violates its own 
rules. 
Unemployed woman from Kutaisi, 24: “When the communal meter was installed
the electricity distribution company and two representatives from our street 
signed a contract that detailing which duties and obligations each party assumed, 
but it never worked. The company representatives were obliged to replace
broken feeders, cut illegal lines, etc. They never fulfilled their obligations, but its 
no use to complain as they dictated the conditions of the contract, which was
unfair from the start. Customers are also unable to fulfill their duties.” 
Retired woman from Akhaltsikhe, 60. “Until we paid our debts we were not
allowed to have individual meters outside, even if we paid for them. We were told 
that unless there was a 90% payment rate we would have no light. Now even if
one of us fails to pay the energy is cut to all 11 families.” 
Participants feel that the distribution company treats customers harshly. The customers have 
no idea of their rights. 
Working woman from Akhaltsikhe: “UEDC has tight policy, if they can they would 
implement their own decision, furthermore are compromising only in rare cases.
People are unaware about what is possible for them to do and what their rights 
are. Commercial meters were installed without warning and soon after the 
customers were asked to pay 3 or 4 times more [for their electricity]. Everyone
refused and the electricity was cut for 4 months. A transitional period was 
necessary for the people to realize the situation they were in.” 
Several focus group participants in Kutaisi stated that they had read information about their 
rights on the back of their electric bill. Only two participants in Akhaltsikhe group knew about 
“The Guide for Customers,” and only three in Kutaisi. All of them had some connections with
the NGO Liberty Institute, worked at the same building, or had acquaintances at NGOs. It
should be noted that even they [the acquaintances] had not read “The Guide.” 
They also had no knowledge about special radio programs or the customer hotline. In Kutaisi 
the Liberty Institute showed an educational documentary film about the energy service sector in 
the summer in spite of the fact that they were suffering from acute energy cuts and were 
irritated. 
Retired woman from Kutaisi, 51: “In the summer an NGO visited our city and 
showed us a documentary film on energy systems. People became enraged – 
66
we cannot solve our problems, so what will knowledge of the workings of the
energy system bring us?” 
She continued, “The city municipality has no influence with the distribution
company. When we went to the municipality, the former mayor told us the 
company was a state within the state.” 
People have also tried to protect their rights in courts, but most such attempts have been
unsuccessful. The Akhaltsikhe community chairman filed a suit against the distribution
company demanding that they absorb the expenses for replacing old individual meters.
Although he won the case, the court decision was not enforced. With the help of the Young
Lawyers’ Association NGO, two citizens in Kutaisi also won a case against the company, but
again the ruling was not enforced. 
Focus group participants say that only NGOs have influence on the distribution companies.
Kutaisi customers were able to meet with the top manager only when the Liberty Institute
interceded. The Akhaltsikhe population rally demanding energy was joined by the Liberty 
Institute and by representatives of the DEMOCRAT MESKH UNION, who acted as mediators
between the public and the distribution company. The energy supply was restored on the
condition of a step-by-step payment plan for outstanding debts. 
Most demonstrators attended town hall meetings organized by the Liberty Institute at their local 
municipalities. News about these meetings spread informally in both towns, as participants 
stated that they went to the rally to learn when electric service would improve and at when
individual meters would be installed. At both the Kutaisi and Akhaltsikhe meetings, both 
municipal officials and distribution company representatives attended. Focus group participant 
said that they were satisfied with the meetings because the company promised them that
improved payment would guarantee electricity and that individual meters would soon be
installed. However, these promises were not kept: 
Working woman from Kutaisi, 31: “The energy company representatives told us
to take the old meters outside, and to organize payment in order to have power. 
People fulfilled their part of obligations: while previously only 20% of customers 
paid, now it is 80%, but there were still no results. People learned of the Liberty 
Institute slogan: ‘FORGET THE DARK PAST, WORK FOR A BRIGHTER
FUTURE.’ People do what they can to save money by economizing on
everything, and if they pay their bills, then the second party in such an
arrangement must live up to its obligations as well.” 
Unemployed man from Akhaltsikhe, 29: “It turned out those meetings were 
superficial. We were promised that individual meters would be installed when
arrears were covered but two months have already passed and installation has 
not begun yet.” 
Although installation started in Kutaisi, new meters were hooked up only to old posts which were
not connected to the power grid – and even this process has now been discontinued.
Customers believe that individual meters are uncomfortable for the distribution company. 
Retired woman from Kutaisi, 51: “Individual meters were installed on some
streets, but the way the process was handled was unsystematic. They used old 
posts that could fall any at moment. Now even that process has stopped and
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people are under the impression that the distribution company prefers using 
communal meters. That’s why they ceased installing individual meters.” 
Focus groups members think that their involvement in the energy sector reform process is poor, 
as they have no information from the mass media. Moreover, meetings between company 
representatives and clients are infrequent and unproductive. 
Woman from Kutaisi, student, 21: “There is nothing interesting about the 
electricity sector published in the mass media for those how want to learn more
about energy problems. The press writes only about Tbilisi’s problems and 
writes nothing about problems in the regions.” 
The group in Akhaltsikhe cited the installation of individual meters as being most urgent. Kutaisi
group participants feel that privatization may help solve the energy problem and also improve
public relations for the distribution company. 
Unemployed woman from Kutaisi, 31: “The way out is privatization, provided the
process is carried out transparently and by the rules. The government is unable
to resolve the problem. We think that the financial resources allotted for
individual meters have ended up in private pockets.” 
Woman from Kutaisi, student, 21: “Relations between the public and the 
company must improve. A neutral area must be created for accomplishing this 
objective, as people are aggressive toward the company. This mediating ring
could be made up of NGOs or journalists.” 
TBILISI FOCUS GROUP 
There is little difference in energy problems between Tbilisi districts Avlabari and Varketili, 
although their relations with Telasi and the Energy State Regulation Company (ESRC) are
similar. 
Varketili is a relatively new district with modern apartment blocks and individual meters were
installed as early as 2000. Varketili focus group participants complained mostly about the debt
accumulated in the previous period when payment was fixed based on the physical floor area of 
flats. The practice of fixing energy cost based on accommodation led to the buildup of
enormous debt. Public indignation was further exacerbated by the poor power supply in that
period – each day customers would receive only 1 or 2 hours of electricity but they were still 
billed for the time that they had no electricity. The same type of debt has been a problem for 
Avlabari residents as well. Unlike Varketili, in Avlabari the installation of individual household
meters has not started yet. 
Woman from Avlabari, 57: “Before new individual meters were installed four 
years ago, I paid my bills regularly according to my old meter reading. Suddenly 
Telasi declared those readings as inaccurate and instead based the cost on the
total area of each flat. Consequently I received a bill for 900 lari.” 
Avlabari is an old district with many dilapidated and vacant houses. However, the absent 
owners learned by chance that they had accumulated energy debt. 
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Woman from Avlabari, 57: “We moved home 11 years ago, yet recently we 
received a bill for 800 lari. I was told at Telasi that all those years I had been 
hiding from the tax collector, even though I had papers to prove that their 
statement was ridiculous.” 
Woman from Avlabari, 43: “We had a flat in a ruined house. Since 1995 we’ve
been living at another place, as our old house had neither ceiling nor floors, and 
not even a roof over our heads. I learned from our neighbors that we had been 
sent a bill for 1,150 lari. Even if the space of the flat were calculated, this amount 
is still improbable. We were advised at Telasi to request a commission to 
investigate how the debt had been calculated.” 
Focus group participants were unaware of the starting period of debt accumulation, some of
them thought about 1996 while others about 1999. 
In efforts to resolve the arrears problem, members of focus group visited various organizations.
Avlabari residents went to the Telais Business Center and to the main office. Varketili residents 
visited ESRC. With the support of their constituency, desperate Varketili residents filed a 
lawsuit against Telasi to have their pre-2000 debts annulled.
Unemployed woman from Varketili, 39: “We filed the suit, and as it was election
time, our deputy was eager to help, but our efforts were of no avail. While power 
is no longer cut, bills arrive regularly with the old debt included.” 
Unemployed woman from Avlabari, 56: “I could not accomplish anything at 
Telasi. In the best case they would share a few words, but they showed no 
desire to talk with people. There is total lack of discipline at Telasi.” 
Participants agreed that restructuring of old debt would be a great accomplishment. 
Unemployed woman from Varketili, 49: “We sent an appeal to ESRC officials for
the annulment of pre-2000 debt and the Business Center manager agreed to 
restructure the debt. However, at both organizations we were told that we still 
had to pay the debt in all instances. This was at a time when we had been 
without electricity in Varketili for a week.” 
While the public doubts the legality of the debt and questions its origins, customers have been 
unable obtain any relevant information as to its justification. 
Unemployed woman from Varketili, 39: “I asked at the Telasi Business Center 
about the method used for calculating the relationship between space and fixed
payment for consumed energy. They replied that the calculating mechanism was
incorporated within the law. However, they refused to give me the text of the law,
even though my debt was enormous.” 
Unemployed woman from Varketili, 49: “I asked at ESRC to be shown where it 
was recorded that we’d used so much energy, but instead they only insulted me.
I didn’t learn anything.” 
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Focus group participants confirm that it has been impossible to get information due to constant 
changes in management, and current officials refuse to comment on decisions made by their 
predecessors. 
Self-employed man from Varketili, 60: “Telasi has changed ownership so
frequently that we cannot ask them to be responsible for the actions of previous 
managers.” 
Unemployed woman from Varketili, 49: “Our rights have been violated regularly 
under TELASI ownership. The only answer one gets at Telasi is, ‘it says so in the 
computer and nothing can be changed.’” 
Electricity customers chiefly address the Business Center but the attitude here is perceived is as 
condescendingly patronizing. 
Unemployed woman from Avlabari, 55: ““When I entered the room, the manager 
had his feet propped up on the table and talked with me without any respect. 
Even if I made a mistake in asking him about something that was not his 
concern, he should have explained something to me, or given a bit of advice.” 
Customers are often unable to find competent help at Telasi’s Business Centers and main
offices. They say that very few clerks are employed and the customer queues are enormous, 
and this leads to commotion. Customers cannot decide which counterperson to approach, as
all of them are constantly busy. As the operators have no time for individual cases, they usually
send customers to the manager, who in turn tries to dismiss customers with standard answers
such as, ’The data is not saved in the computer’ or ‘Write an appeal and we’ll establish a 
commission.’” 
Unemployed woman from Varketili, 39: “Everyone has rights and responsibilities,
whereas Telasi only accentuates the responsibilities of the customer. Their 
desk-managers are overworked. Wouldn’t it be better to have more people
employed to answer customers?” 
Unemployed woman from Varketili, 39: “You can never figure out which queue to 
stand in. Even after reaching the counter you never get the answers. The 
problem is finding the right person to ask.” 
Unemployed woman from Avlabari, 43: “I could not find out at what level 
decisions were made. Neither an accountant nor the manager could give me a
competent answer. As it turns out, one should address Telasi officials in written
form to receive an answer from them. Finally a boy in the guard told me how to
write an appeal, but I never found out what documents to prepare, so I lost heart
and stopped worrying about the entire affair.” 
Participants confirm that in order to have your problem solved, you should ask for a
commission. However, they say, Telasi is reluctant to satisfy customer requests. There have
been cases in which the commission’s ruling was not entered in the computer database and
customers continued to receive old bills. As Telasi never bothers to end such violations, it 
provokes the justified indignation of the public. 
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Self-employed woman from Avlabari, 48: “Collectors from Telasi came to my
kiosk to assess the amount of the energy spent and to fix the payment, but in
spite of this, the next month I was billed in the old manner. When we asked for
an explanation at the business center, we were told they had not received any 
documents confirming the new payment system, even though we had a copy of
that document with us. Now I don’t know what to do. If I don’t pay the bill, my
debt will grow and my electricity will be cut.” 
Most focus group participants learned about ESCAs two years ago. Varketili focus group
participants said they had obtained information about ESCA through NGO representatives who 
visited their homes to talk with them; Avlabari focus group participants learned of their ESCA 
and its leader through personal acquaintances. Varketili participants praised ESCA’s leader as
being an active person who takes the problems of his neighbors to heart. 
Unemployed woman from Avlabari, 43: “I learned about ESCA from my friends
and I became interested. People at the association explained to us in detail what
kind of documents we would need. As soon as the documents were collected I 
left them at ESCA and my problem was solved very quickly.” 
Unemployed woman from Avlabari, 57: “We went to the house exploitation office 
to get a document that we had been evicted from the house we lived in. The
clerk advised us to go to ESCA, whose headquarters were in the same building,
for assistance. Consultation at ESCA was so good that I have no doubt that my
problem will soon be resolved.” 
Unemployed woman from Varketili, 32 “I had no electricity for 5 years because of
arrears and I could not pay the enormous debt I was asked to cover. I asked for
debt restructure but the only answer I got was, ‘We do not care about your 
problems.’ When I learned about ESCA, I called their office and was told to leave
my data at the end of December. They settled everything and never asked to be
paid for the service. Now I have already paid part of my debt.” 
At present target group participants know ESCA’s location and contact telephone numbers. The
number of people asking ESCA for help is constantly growing. Most are retirees without 
relatives, who are unable to cope with the problems. 
Retired woman from Varketili, 71: “I live near the Association’s office, so when
payment problems arose I went there for advice. People at the Association 
explained everything to me and helped me with my problem.” 
Woman from Avlabari, NGO member, 47: “As a neutral organization this 
association is more trusted than other organizations. Moreover, it has never
refused to help people. The Association helps people who are unable on their
own to protect their rights in dealing with Telasi.” 
Target group participants highly regarded ESCA’s activities, calling ESCA a trustworthy 
organization that voiced customer’s wishes. One participant said that Telasi officials never 
bothered to explain in clear language to their customers how they should resolve their
difficulties. ESCA has knowledge of the energy sector and it is also in a position to state terms 
and conditions to Telasi.
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Unemployed woman from Avlabari, 55: “Telasi has had service centers since the 
beginning, yet their work was ineffective. ESCA is trusted because it does not
represent Telasi, which just makes customers pay. I trust ESCA people so much
that I left the title to my house with them. I would never have done such a thing
with Telasi.” 
Unemployed woman from Avlabari, 55: “Larisa is a great specialist who showed 
Telasi clerks their mistakes. These clerks never pay any attention to ordinary 
people.” 
Participants see ESCA activities as mutually profitable for Telasi and for its customers, who 
have started paying their Telasi debts after receiving ESCA’s help. Customers are stating that
ESCA clearly explain origin of debts and their responsibilities and only after terms for payment
of debts became acceptable. 
Unemployed woman from Varketili, 38: “ESCA has established relations with the
public that Telasi never could have. Telasi listens to ESCA’s advice and 
criticism.” 
Unemployed woman from Varketili, 49: “I trust Mzia, the Association leader, who 
contacted me to explain why I couldn’t avoid paying my debt and promised I
would make arrangements.” 
Unemployed woman from Varketili, 32: “ESCA members Darejan and Larisa
spend extra time for particular customers. Sometimes they manage to cut their
debts in half, or arrange step-by-step payments. It’s nice when you know you are 
not being cheated.” 
Focus group participants admit they prefer to have ESCAs solve problems or carry out research 
for them. Although ESCA workers gave them the “Guide for Customers” and “Electricity Tariffs,”
they say they never read these books. 
Participants knew nothing of the program for schools to increase awareness of energy sector 
specifics among pupils. 
Unemployed woman from Varketili, 39: Hand books were distributed during
meetings. Could not read the book, however read some parts. 
Woman from Avlabari, NGO member, 47: “I have no time for reading. I entrust
that to ESCA.” 
Focus group participants say they know the rules for joining ESCA, and seven participants from 
Avlabari and four from Varketili have joined the Association. 
Focus group participants from Varketili said that costomers will be wiling to pay 3 lari
membership fee in order to join ESCA, while one lari for membership fee was preferred by 
Avlabari focus group participants. Also, participants believed that ESCA’s activities should be
more visible among general public. Only few are aware of ESCA and population’s knowledge is 
based on personal discussions about ESCA. They add that if ESCA expands its activity to
include other services, then more people will become members, and more people will turn to
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them for assistance. For some participants, payments for delivered services were more
acceptable than payment of monthly membership fee. 
Unemployed woman from Varketili, 49: It is more realistic if customer pays per 
delivered service, because public would not pay for not compulsory fees. Until 
problems appear no one thinks about it. 
Unemployed woman from Avlabari, 43: “ESCA needs advertising to increase 
public awareness of its existence. If there were more information in plain 
language about its activities, more people would be able to benefit from ESCA 
assistance, and still more would join the Association – and ESCA profits would
grow as a result.” 
Unemployed woman from Varketili, 28. If ESCA’s scope of activities are widened
they will became more important for public, thus public will be willing to pay 3 lari
as a membership fee and this is due to many unresolved problems existed in
Georgia. 
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APPENDIX F. Abbreviations 
AED: Academy for Educational Development 
APS: Annual Program Statement 
CENN: Caucus Environmental NGOs Network 
ESCA: Energy Services Consumers’ Association 
FEF: Fair Election Foundation
FOI: Freedom of Information 
GEL: Georgian Lari 
GNERC: Georgian National Energy Regulatory Commission 
GoG: Government of Georgia 
GSE: Georgian Transmission and Dispatch Company 
GWEM: Georgia Wholesale Electricity Market 
IRs: Intermediate Results 
ISFED: International Society for Fair Elections and Democracy 
M&E: Monitoring and Evaluation 
MEF: Ministry of Energy and Fuels 
MIS: Management Information Systems 
MOU: Memorandum of Understanding 
NGO: Non-governmental Organization
PSA: Public Service Announcements 
RAO UES: United Energy Systems of Russia 
RDA: Research and Development Association 
USAID: United States Agency for International Development 
UEDC: United Energy Distribution Company 
VS: Vote Smart 
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