---
title: "Utility Regulation"
url: "https://legal.ge/en/service/licensing-and-regulatory-permits-en/utility-regulation-en"
field: "Licensing & Regulatory Permits"
description: "Utility regulation: public service, mandatory licensing, licence conditions and authorization transition. Legal.ge."
reviewed: "2026-02-15"
updated: "2026-10-14"
publisher: "legal.ge"
---

# Utility Regulation

> Source: legal.ge, https://legal.ge/en/service/licensing-and-regulatory-permits-en/utility-regulation-en

The regulation of the utility sphere under the Law on Energy is built on five interconnected blocks of norms: the general principles, the public-service obligation institution, mandatory authorization (licensing), the licence conditions, and the transition rule for authorization. This page explains all five together — it is in their combination that the legal map of the utility business lies.

## General principles

The principles of regulation include: the safety and reliability of the operation of systems; the safe supply of electricity and natural gas to consumers; unrestricted access to systems and the right to change supplier; competition, transparency, non-discrimination and legal certainty; the independence of transmission and distribution from commercial interests; increased efficiency and the promotion of smart, environmentally safe technologies. These principles are the starting point for interpreting every detailed norm.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/licensing-and-regulatory-permits-en/utility-regulation-en

### Who imposes the public-service obligation?

The government, after consultation with the competent authorities, the commission and the Energy Community Secretariat; the obligation is temporary and regularly reviewed.

### Which activities require a licence?

Electricity generation, transmission, distribution and market operation, the corresponding gas activities and water supply; exceptions include own-consumption generation off-grid and small or micro plants.

### What must a licence seeker substantiate?

Technical, economic, financial and operational capabilities, quality-assurance measures and, where needed, the capacity to perform public-service obligations.

### What about compensation?

Compensation or an exclusive right is granted transparently and must not exceed costs, taking into account revenue and reasonable profit; the tariff is set by the commission.

### What is the transition deadline for authorization?

An undertaking operating under an old authorization must apply within 2 months of the law's entry into force.