Energy Distribution Licensing is one of the most strictly regulated areas of energy activity in Georgia. The distribution of electricity and natural gas constitutes a public service, requiring a license from the Georgian National Energy and Water Supply Regulatory Commission (GNERC). Following energy market reform, distribution and supply activities have been unbundled, making the licensing process even more complex. A license-seeking company must meet strict technical, financial, and legal criteria to ensure safe and reliable energy supply to consumers.
Energy law specialists registered on the Legal.ge platform offer full legal support at all stages of licensing. Services include:
- Preparation of license application: Compiling a complete package of documents for GNERC, including technical justification, financial plan, list of assets, and organizational structure.
- Representation in tariff setting: Legal support in calculating the distribution tariff and communicating with GNERC's tariff department to approve an optimal tariff.
- Development of compliance program: Preparing internal corporate acts and a compliance program in accordance with unbundling rules, which is a prerequisite for obtaining a license.
- Grid code compliance: Legal assurance of distribution grid operation according to the requirements of "Network Rules."
- Dispute resolution: Representation at GNERC hearings and in court in case of license refusal or appeal against fines imposed for violation of license conditions.
Energy distribution licensing services are needed in the following situations:
- An investor purchases an existing small distribution network (e.g., in an industrial zone) and needs to transfer the license or obtain a new one.
- A large manufacturing company with its own substations and network plans to become a "micro-capacity distribution system operator" and needs regulatory permission.
- An existing licensee company undergoes reorganization (split/merger), requiring changes to license conditions and approval of a new tariff.
- A company wants to build a natural gas distribution network in a new settlement and needs a preliminary license to start construction.
The field is regulated by the Law of Georgia on Energy and Water Supply and the Law on Licenses and Permits. Detailed licensing procedures are outlined in GNERC's resolution "On Approval of Rules for Control and Licensing of Activities in Electricity and Natural Gas Sectors." Tariffs are set by a special methodology based on Cost Plus or incentive regulation principles. Unbundling requirements stem from the EU Third Energy Package.
Collaboration with a Legal.ge specialist reduces bureaucratic barriers and accelerates the licensing process. Energy law is a specific field where technical and legal details are closely intertwined. An experienced lawyer ensures that your application is complete and compatible with GNERC requirements, avoiding rejection due to application flaws.
Find energy law experts on Legal.ge to successfully navigate the complex path of licensing. Our platform gives you access to lawyers with years of experience working with GNERC. Legal.ge is your reliable guide in the Georgian energy market.
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