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BAKU, Azerbaijan, Dec.1
By Tamilla Mammadova – Trend:
The transposition of the Third Energy Package and provisions on security of supply means major progress (also) for the gas sector of Georgia, Trend reports via Energy Community Secretariat's annual implementation report.
As reported, Georgia must accelerate work on the adoption of the relevant secondary acts, and implement the law in practice.
For the regulation of interconnection points, Georgia benefits from exemptions until 2026 which benefit also the South Caucasus Pipeline and the North-South Gas Pipeline.
"Georgia’s energy regulator, GNERC, adopted certification rules for the transmission system operator in March 2020. However, the Law stipulates that the unbundling of the gas transmission system operator should be performed only by 31 December 2021, which is not in line with Georgia’s obligations," the report said.
The country’s transmission system operator, the Georgian Gas Transportation Company (GGTC) has to start preparations for the unbundling process in order to meet the deadline.
The rules for the unbundling of distribution system operators were adopted by GNERC in July 2020. They establish the mandatory criteria for unbundling of the distribution system operator and set out requirements and rules for the development, introduction, adoption, and publication of a compliance program by the distribution system operator as well as activities of the compliance officer.
Georgia is exempted from performing capacity allocation on the interconnection points. However, third party access to the network is not hampered by that exemption.
"Georgia met its deadline for transposition of the balancing Network Code in September 2020. The introduction of an entry/exit tariff methodology is envisaged as of 2023. Under the current natural gas Network Code, the gas transportation licensee is obliged to sign interconnection agreements with adjacent transmission system operators. REMIT has not been transposed," the report said.
Georgia is a net importer of gas and intergovernmental agreements and long-term contracts continue to frame gas supplies to Georgia while keeping the Georgian wholesale and retail gas markets illiquid and foreclosed. The development of a well-functioning gas hub could diversify Georgia’s gas market and provide opportunities for increased trading and a more strategic role for Georgia in the region.
The gas market is open according to the Law. Wholesale prices are deregulated for the commercial sector including industry and small enterprises. There is no virtual trading point in Georgia. The gas market concept design is being discussed with the Secretariat.
The Law allows the imposition of public service obligations on gas undertakings to provide regulated public supply to households, small enterprises, and thermal power plants. The regulator was tasked to review its necessity every two years. Moreover, the Law envisages a supplier of last resort. A category of vulnerable
customers representing household customers in need of special treatment due to their status or health condition is also subject to social programs and additional protection by the government.
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