Third-Party Access to the Electricity Transmission System
The transmission system operator ensures non-discriminatory and unrestricted access of users to the electricity transmission system, in compliance with the requirements of the electricity transmission network rules. The access fee is calculated and set by the regulatory commission under the relevant methodology. Offering the same service to different users must take place on equal contractual terms, either through a harmonized transmission service contract or in accordance with the transmission network rules. The law does not prevent the conclusion of long-term contracts, provided they comply with the competition rules established by the legislation of Georgia and the Energy Community.
The transmission system operator publishes on its website the procedure, rules and conditions of access to the transmission system, including the requirements set by the network rules and the fees determined by the commission, as well as the technical and quantitative data needed for access to and use of the system, which must be regularly updated. In cases provided for by a legal act of the commission, third-party access related services may be provided only after the presentation of an appropriate financial guarantee; such a guarantee must be non-discriminatory, transparent and proportionate and must not create an unjustified barrier to market entry. The transmission system operator may have access to the networks of neighboring countries' transmission system operators under bilateral or multilateral agreements or other cooperation arrangements, where this is necessary for performing its functions, including cross-border transmission of electricity. When dispatching generation facilities, the operator gives priority, in the manner established by Georgian legislation, to facilities generating energy from renewable sources or other encouraged production facilities.
Access to the Natural Gas Transmission System and Grounds for Refusal
Third-party access to the natural gas transmission system is likewise non-discriminatory and unrestricted and is carried out in compliance with the network rules, while the access fee is based on the tariff calculated and set by the commission under the relevant methodology. Moreover, it is in the natural gas sector that the law directly defines the cases in which the transmission system operator is entitled to refuse access.
The transmission system operator may not refuse access to the natural gas transmission system, in whole or in part, except in the following cases:
- insufficient capacity in the requested period;
- absence of a connection point;
- access would prevent the operator from providing public service in accordance with the law;
- access would endanger public health or safety.
In these cases the decision to refuse access must be duly substantiated, indicating the period of its validity, and the procedure and conditions for refusing access to third parties are defined by the natural gas network rules.
Third-Party Access to the Distribution System
The distribution system operator also ensures non-discriminatory and unrestricted access to the distribution system in compliance with the rules, and the access fee is based on the tariff calculated and set by the commission under the relevant methodology. The distribution system operator may not refuse access to the distribution system, in whole or in part, except where access in the requested period would prevent it from providing public service in accordance with the law or would endanger public health or safety. In such cases the refusal decision must be duly substantiated with an indication of its validity period, and the procedure and conditions for refusing access are defined by the respective network rules.
Connection of Devices to the Network and the Connection Fee
In accordance with the network rules, the transmission system operator ensures the connection of electricity devices to the electricity transmission network, and of natural gas devices to the natural gas transmission network, in the same manner. The fee for connection to the electricity transmission network is set by the commission based on the results of calculations carried out under its own methodology; the fee for connection to the natural gas transmission network is likewise determined based on calculations carried out under the adopted methodology. This means that the cost of connection is not a subject of free negotiation but a calculated and substantiated amount whose computation is governed by the methodology.
Preferential Terms for New Interconnectors
Upon the request of an electricity enterprise, the full capacity of a new direct current interconnector, or part of it, may be temporarily exempted from obligations established by the law, provided all of the following conditions are met simultaneously:
- the investment related to building the interconnector promotes competition in the activity of electricity supply;
- given the associated risks, the investment is impossible without the exemptions provided for by the law;
- the owner of the interconnector is separated, at least in legal form, from the transmission system operator and from the operator of the system to which the interconnector connects;
- the users of the interconnector bear the obligation to pay the fee;
- no component of the fee for using the transmission or distribution system has been used to cover the capital or operational costs of the interconnector or any part thereof;
- the establishment of preferential terms does not harm competition or the internal and regional electricity markets, or the effective functioning of the regulated system to which the interconnector is connected.
This exception also applies to alternating current interconnectors where the costs and risks associated with the investment significantly exceed those usually arising when connecting two neighboring transmission system operators through an alternating current interconnector, and it extends to cases of a significant increase in the capacity of an existing interconnector. Before establishing preferential terms, the commission defines the rules for managing and allocating the interconnector's capacity; the congestion management rules must include the obligation to offer unused capacity to the market and the right of users to trade contracted capacity on a secondary market.
The Procedure for Establishing Preferential Terms
The decision on establishing preferential terms is taken for each individual case by the commission together with the competent regulatory authority of the respective neighboring country. The commission may, before adopting the decision, submit the matter for consideration to the Energy Community Regulatory Council. If the commission and the neighboring country's regulatory authority adopt the decision within 6 months from the submission of the request, the commission notifies the Energy Community Regulatory Council, and the decision, including all its conditions, must be duly substantiated and published.
If the regulators fail to adopt a decision within 6 months from the day when the last of them received the request, or where either of them so requests, the decision may be taken by the Energy Community Regulatory Council after consideration with the regulatory authorities and the applicants. The commission immediately sends a copy of the received request to the Regulatory Council and the Secretariat. The Secretariat may, within 2 months of receiving the information, require the regulatory authorities to amend or withdraw the decision; this 2-month period may be extended by an additional 2 months where the Secretariat needs additional information or the parties agree to an extension. The Secretariat's request must be satisfied within 1 month of its receipt. The consent given by the Secretariat loses force after 2 years if the construction of the interconnector has not started within that period, or after 5 years if the interconnector has not been put into operation, unless the delay is caused by reasons independent of the person at whose request the preferential terms were established. These requirements apply where the neighboring country is a member of the Energy Community or consents to their application.