BAKU, Azerbaijan, Dec.1
By Tamilla Mammadova – Trend:
Gradual liberalization of the wholesale and retail markets is defined by the Government’s Electricity Market Concept Design adopted in April 2020 and the electricity market rules, which will enter into force on 1 July 2021, Trend reports via Energy Community Secretariat's annual implementation report.
"According to the Electricity Market Concept Design, day-ahead, balancing and ancillary services markets will be operational from 1 July 2021 and the intraday market from July 1, 2022," the report said.
The operation of the day-ahead and balancing markets are currently being tested by the Georgian Energy Exchange and the transmission system operator.
On the retail side, all customers connected to the 35 - 110 kV voltage level and consuming not less than 0.4 million kWh per month will be obliged to choose their supplier by July 1, 2021.
All medium voltage customers as well as customers connected to 6 - 10 kV, consuming not less than 1 mil. kWh will have to choose their supplier by July 1, 2022. All remaining customers except households and small enterprises will have to choose their suppliers until July 1, 2026.
The newly adopted electricity market rules contain day-ahead, intraday, and balancing market rules, including imbalance settlements. According to the Law, GNERC will conduct market monitoring in line with the terms and conditions defined by the market monitoring rules, which are to enter into force on January 1, 2021.
GNERC has adopted retail electricity market rules, which comprise specific provisions to support the supplier switching process, regulate the retail electricity market, and allow for the enforcement of competition rules. Furthermore, GNERC adopted several resolutions determining rules on dispute resolution, market
monitoring, quality of service, etc.
The Law on Energy and Water Supply also includes provisions on vulnerable customer protection that enable public authorities to develop and implement mechanisms for the protection of vulnerable customers.
GNERC carried out a smart metering system cost-benefit analysis which proved positive for the electricity market. At present, GNERC is working on a regulatory strategy for the implementation of smart metering systems.
As Georgia has no physical interconnection with the EU or Energy Community electricity markets, a derogation from cross-border cooperation is granted to the country until this happens.
At this stage, there is no coordinated capacity allocation of cross-border capacities with neighboring countries, except bilateral cross-border capacity allocation on the interconnection with Turkey.
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