Georgia’s Deputy Prime Minister and State Minister for Coordination of Law Enforcement Agencies, Mamuka Mdinaradze, announced at a government briefing the launch of a crackdown on illegal crypto mining in the Municipality of Mestia.
“Illegal electricity consumption is putting pressure on local power networks and causing damage to the country’s energy system, as well as to residents and the private sector in the region,” he said.
Electricity consumption in Mestia reached 133 million kilowatt-hours in 2025, while a municipality of similar size would typically consume no more than 10 million kilowatt-hours. Mdinaradze estimated the damage to the energy system and related financial losses at no less than 20–25 million lari. He added that every electricity consumer in the country bears part of that burden, with citizens effectively paying around 1.5 lari extra on each bill because of illegal crypto mining.
The quality of electricity supply has also deteriorated due to overloaded networks and transmission lines. Power outages have affected both local residents and the tourism sector.
Meters and Tariffs
Authorities are beginning the installation of electricity meters, something that had not been possible until now for a number of reasons that Mdinaradze described as contradictory. Electricity has historically been provided free of charge to residents of Svaneti, and the lack of metering allowed industrial-scale mining operations to be disguised as household consumption.
Measurements will be carried out both locally and on a broader scale across individual villages and settlements, making it easier to identify the sources of excessive consumption.
Mdinaradze stressed that the only purpose of the measurements is to eliminate illegal and concealed electricity use. Electricity in Svaneti will remain free for every consumer within the maximum volume required for their needs. Consumption above that threshold will be subject to limits and the corresponding tariff.
Law enforcement authorities have already been instructed to supervise the process. They will identify cases of large-scale illegal electricity consumption and seek to hold those responsible accountable.
Read Also: