Certification of transmission system operator Georgian State Electrosystem in accordance with the European legislation (Third energy package)

By the decision of the Georgian National Energy and Water Supply Regulatory Commission of April 1, 2021, Georgian State Electrosystem was granted a certificate of a transmission system operator.

In accordance with the international obligations undertaken by Georgia, the Law of Georgia on Energy and Water Supply, which entered into force on December 27, 2019, among other issues, defines the obligation to certify the transmission system operator. Certification is a procedure that determines the compliance of a transmission system operator with the independence and unbundling requirements (under the criteria of the 3rd European Energy Package). Following the certification decision, the Georgian National Energy and Water Regulatory Commission oversees their consistent compliance with the independence and unbundling requirements, established by the law.

By law, the transmission system operator unbundling model is ownership unbundling.

The certification of JSC Georgian State Electrosystem was preceded by the implementation of the Transmission System Operator unbundling Plan approved by the Government of Georgia on November 13, 2020 by Resolution N682.

Based on the certification application and attached documentation submitted by the JSC Georgian State Electrosystem, the Georgian National Energy and Water Supply Regulatory Commission issued a decision on March 4, 2021 on Preliminary Certification of JSC Georgian State Electrosystem as an ElectricityTransmission System Operator.

On March 26, 2021, the Energy Union stated its position on the decision taken by the Commission, according to which the Energy Union agrees to certify GSE as a transmission system operator if the specified conditions are met. Based on this, on April 1, 2021, the Georgian National Energy and Water Supply Regulatory Commission made a decision to certify GSE as a transmission system operator in accordance with the rules established by the legislation of Georgia and the legislation of the Energy Union.

In conformity with the requirements of the Law of Georgia on Energy and Water Supply, the Georgian National Energy and Water Supply Regulatory Commission shall at a later stage authorize a certified transmission system operator in accordance with the legislation by issuing a transmission license. GSE has already submitted the relevant application on April 15, 2021 for the transmission license. The submitted documents are currently being reviewed by the Commission for a decision on the issuance of the license.

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